Cisco says Wi-Fi spend shifts to growth as AI bites

Cisco has published its State of Wireless Report 2026, based on a survey of more than 6,000 wireless professionals across 30 markets.

The report says corporate Wi-Fi spending is moving beyond routine network upkeep and is increasingly viewed as a business investment linked to revenue, productivity and customer engagement. Among organisations surveyed, 68% reported a direct positive effect on revenue from wireless investment, while 78% cited operational efficiency gains and 75% reported better employee productivity.

That shift is reflected in spending plans. Four in five organisations said they had increased wireless spending over the past five years, and 29% reported budget rises of 50% or more over that period. Looking ahead, 82% expect budgets to continue rising over the next four to five years, with 35% forecasting increases of at least 50%.

Budget shift

Key drivers include heavier use of AI, internet-connected devices and bandwidth-intensive applications such as 4K and 8K streaming, along with augmented and virtual reality. Workplace changes, including hot desking and bring-your-own-device policies, are also putting more pressure on wireless networks.

Almost three in five organisations plan to deploy Wi-Fi 6E or Wi-Fi 7 within the next year. The findings suggest a faster refresh cycle as companies try to support rising traffic volumes and a broader mix of connected endpoints.

The report centres on what Cisco describes as a wireless AI paradox: AI is increasing the value companies can get from modern wireless networks, while also making those networks more complex to run, harder to secure and more difficult to staff.

According to the survey, 98% of organisations reported rising wireless complexity. Many IT teams also remain stuck in reactive support work, limiting the time available for broader technology projects.

Automation gap

AI-driven operations could save an average of 3 hours and 20 minutes per person each day, equivalent to more than 850 hours a year for each IT practitioner. Yet adoption remains limited. Cisco said only 26% of firms had fully implemented AIOps, leaving a wide gap between potential efficiency gains and current deployment.

More than four in five organisations said they would prefer a fully or mostly automated wireless network run with AI-driven operations. Among those already using AI automation, 98% reported what Cisco described as substantial gains.

Security is another pressure point. The survey found that more than half of organisations had suffered financial losses from wireless security incidents, and half of those losses exceeded USD $1 million annually. Cisco also said 40% of organisations lose more than USD $1 million each year from wireless security incidents, often linked to AI-generated attacks.

Compromised internet of things and operational technology devices were identified as a significant source of those breaches. More than a third of affected organisations blamed incidents on these connected devices, which often sit outside the traditional set of laptops and smartphones managed by IT departments.

Hiring strain

The report also highlighted a shortage of skilled wireless staff. Cisco said 86% of leaders were unable to find qualified personnel, while the broader survey found nearly nine in ten wireless leaders struggling to recruit people with the right expertise.

That staffing shortage appears to carry a financial penalty. According to the findings, organisations facing greater recruitment difficulty were more likely to incur security incident costs that were 70% higher each year than those without hiring problems.

The study suggests that companies able to address complexity, security and talent constraints are far more likely to generate strong returns from wireless investment. Organisations that overcome those barriers are four times more likely to achieve a wireless return on investment of 4:1 or higher, Cisco said.

"The enterprise workforce is evolving into blended teams of humans, AI agents, and automated systems, all operating together at machine speed. Wi-Fi is the foundation that makes that possible, connecting every endpoint, protecting every interaction, and unlocking the operational insights that drive smarter decisions across the business," said Anurag Dhingra, Senior Vice President & General Manager, Enterprise Connectivity & Collaboration, Cisco.

"AI is both the biggest opportunity and the biggest test for enterprise networks right now," Dhingra said.