Palo Alto Networks CEO Nikesh Arora observed a slow adoption of AI technologies in the enterprise sector, contrasting with the significant uptake among consumers. While coding assistants are the exception, Arora believes businesses will gradually embrace AI, similar to how cloud computing adoption unfolded over time.

During a Q2 earnings call, Arora emphasized that current enterprise AI applications fail to generate the network traffic necessary for Palo Alto’s security offerings. He mentioned the ongoing efforts within the security industry to establish a robust AI security platform, describing it as a competitive race.

The CEO also pointed out some early examples of enterprise AI adoption, where specific applications are generating significant LAN traffic. However, existing networks manage this load without difficulty. Arora highlighted the need for centralized AI traffic to improve visibility and control.

Palo Alto Networks recently finalized its acquisition of Koi, an agentic AI endpoint security startup, and has previously acquired firms like Chronosphere and CyberArk to enhance its portfolio, preparing for the anticipated wave of enterprise AI implementations.

Despite the company’s Q2 revenue reaching $2.6 billion, marking a 15% year-over-year growth, investor reactions were mixed due to predictions of easing profits in the future.