A new study by Cisco reveals that Saudi network capacity limits will be reached by 86% of local organizations within the next two years due to artificial intelligence workloads. This research, conducted in partnership with Foundry, surveyed 200 IT leaders in Saudi Arabia to analyze infrastructure readiness. Consequently, the rapid deployment of advanced technologies is placing significant pressure on existing enterprise systems.
Specifically, the study highlights that local organizations are adopting agentic AI at a faster rate than the global average. Currently, more than 40% of Saudi entities have deployed these autonomous agents enterprise-wide, compared to 33% globally. As a result, these deployments generate dense internal traffic that traditional workplace networks cannot easily support.
Rapid Adoption of Agentic AI
Furthermore, these autonomous agents trigger multiple API calls and database lookups within seconds. This activity makes artificial intelligence workloads highly sensitive to network reliability, packet loss, and latency. Notably, 73% of local respondents stated that uptime is more critical for these systems than for traditional applications.
Pressure on Saudi Network Capacity
Meanwhile, experts expect local AI network traffic to more than triple within the next three years. Specifically, agentic AI workloads will drive the highest individual increase, growing by approximately 116%. Therefore, maintaining the current Saudi network capacity requires immediate infrastructure upgrades across campus and branch locations.
“The Kingdom of Saudi Arabia is moving at a remarkable pace in adopting AI technologies, with local organizations deploying agentic AI ahead of the global average. But this accelerated innovation brings a critical challenge: network infrastructure must continue to evolve at the same pace.”
Tarik Al-Turki, Systems Engineering Director, Cisco Saudi Arabia
Budget Constraints and Bottlenecks
In addition, Wi-Fi networks are emerging as a primary bottleneck for local enterprises. Approximately 46% of Saudi respondents identified wireless infrastructure as the area requiring the greatest capacity expansion. However, 34% of IT leaders reported that budget constraints limit their modernization plans to a great extent.
Although 90% of organizations plan to upgrade their systems, financial limitations remain a major hurdle. Consequently, 74% of local IT leaders express more confidence in their overall AI strategy than in their network’s actual capability. This gap highlights the urgent need for targeted infrastructure investments.
Security and Observability Challenges
Beyond physical limits, the rise of AI introduces complex security risks for local businesses. Specifically, 93% of surveyed IT leaders struggle to manage these evolving threats, while 87% report actual damage. Moreover, 64% believe that AI-related security threats are developing faster than their current defense mechanisms.
Finally, a significant observability gap persists among local enterprises. About 58% of Saudi respondents admitted they lack adequate visibility into AI-related traffic flows. Therefore, addressing these visibility and security gaps is essential for successful long-term digital transformation.
