F5 Research Finds Most Enterprises Still Fall Short in AI Readiness, Face Security and Governance Issues Blocking Scalability
77% of companies are moderately ready for AI but still face significant security and governance hurdles.
71% of organizations use AI to boost security, while only 31% have deployed AI firewalls.
SEATTLE, July 14, 2025--(BUSINESS WIRE)--F5 (NASDAQ: FFIV), the global leader in delivering and securing every app and API, today unveiled its 2025 State of AI Application Strategy Report, revealing that only 2% of global organizations are highly ready to scale AI securely across operations. The report compiles insights from 650 global IT leaders and additional research with 150 AI strategists, representing organizations with at least $200 million in annual revenue.
The report unveils stark truths about the state of AI readiness for enterprises today and their ability to adapt at sufficient speeds to keep pace with new innovations. The most notable findings of the report reveal that while 77% of companies demonstrate moderate AI readiness, most lack robust governance and cross-cloud security, exposing them to risks. Meanwhile, 21% of companies fall into the low-readiness category, limiting their competitive edge as AI transforms industries.
F5's research reveals trends illustrating the rapid expansion of AI use by today's enterprises. All told, 70% of moderately ready organizations have generative AI in active use, and virtually everyone else is working on it. Additionally, 25% of apps, on average, use AI. Highly ready organizations typically use AI in a much higher percentage, with portfolio-wide saturation expected. Low-readiness organizations use AI in less than one-quarter of their apps, typically in siloed or experimental settings. Moderately ready organizations currently have AI present in about one-third of applications.
The report provides a snapshot of the latest trends in enterprises grappling with embracing AI. Nearly two-thirds of survey respondents (65%) use two or more paid models and at least one open-source model. The average organization uses three models, and the use of multiple models correlates with deployment in more than one environment or location. The majority of models in use today are paid models such as GPT-4, but open-source alternatives are also popular. The top open-source models cited are Meta's Llama variants, Mistral AI variants, and Google's Gemma.
"As AI becomes core to business strategy, readiness requires more than experimentation—it demands security, scalability, and alignment," said John Maddison, Chief Product and Corporate Marketing Officer at F5. "This report highlights actionable steps for organizations to operationalize AI with confidence. AI is already transforming security operations, but without mature governance and purpose-built protections, enterprises risk amplifying threats."
Cybersecurity Challenges in AI Adoption
The report highlights critical cybersecurity issues as organizations scale AI capabilities, revealing concerning trends about enterprises' ability to tackle the complexity of securing AI workloads. Key cybersecurity trends identified in the report include:
Organizations see AI as a viable cybersecurity asset: 71% of all respondents already use AI to augment security.
AI-specific protections are lacking: Only 18% of moderately ready organizations have deployed an AI firewall, with 47% aiming to have done so within a year.
Data governance weaknesses: Just 24% of organizations practice continuous data labeling, indicating reduced transparency and increased risks of adversarial attacks.
Cross-cloud inconsistencies: Hybrid environments create governance gaps, leaving workflows and data exposed to vulnerabilities.
Expanded attack surface: The use of diverse AI models exacerbates risks without proper control frameworks for open-source tools.
Recommendations to Improve AI Readiness
The report introduces the AI Readiness Index, a framework measuring six factors of operational maturity, including security and infrastructure alignment. F5 outlines key actions for enterprises to enhance AI scalability and security, including:
Diversify AI models: Use both paid and open-source AI tools while improving governance to mitigate risks.
Expand AI use across workflows: Move beyond pilots and embed AI in operations, analytics, and security for enterprise-wide transformation.
Integrate AI-specific security: Deploy protections like AI firewalls and formalize data governance processes, including data labeling, to safeguard workflows.
Organizations with high AI readiness can scale effectively, mitigate risks, and leverage innovation strategically. Those without maturity frameworks face operational bottlenecks, compliance challenges, and stifled growth. The AI Readiness Index serves as a roadmap for enterprises to benchmark progress and implement actionable changes for secure scalability. Download the 2025 State of AI Application Strategy Report to benchmark your readiness, identify gaps, and accelerate secure AI scaling.
Supporting Materials
Blog: The State of AI Readiness: Moving from Ambition to Architecture
Blog: Accelerate AI: An In-Depth Look at Industry-Leading AI Innovation from F5
Resource: Accelerate AI Details
About F5
F5, Inc. (NASDAQ: FFIV) is the global leader that delivers and secures every app. Backed by three decades of expertise, F5 has built the industry's premier platform—F5 Application Delivery and Security Platform (ADSP)—to deliver and secure every app, every API, anywhere: on-premises, in the cloud, at the edge, and across hybrid, multicloud environments. F5 is committed to innovating and partnering with the world's largest and most advanced organizations to deliver fast, available, and secure digital experiences. Together, we help each other thrive and bring a better digital world to life.
For more information visit f5.com Explore F5 Labs threat research at f5.com/labs Follow to learn more about F5, our partners, and technologies: Blog | LinkedIn | X | YouTube | Instagram | Facebook
F5 is a trademark, service mark, or tradename of F5, Inc., in the U.S. and other countries. All other product and company names herein may be trademarks of their respective owners.
Source: F5, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250714174436/en/
Contacts
Dan SorensenF5(650) 228-4842d.sorensen@f5.com
Holly LancasterWe. Communications(415) 547-7054hlancaster@wecommunications.com
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNBC
4 minutes ago
- CNBC
Jim Cramer attributes market resilience to Big Tech's earnings success
CNBC's Jim Cramer reviewed Monday's market action and told investors that stocks' rebound from last week was lead by positive news from the Magnificent Seven Tech stocks — Microsoft, Meta, Amazon, Apple, Alphabet, Nvidia and Tesla. "Now, some of that may be because…the Fed has to cut, maybe even before September — I mean, that's how weak the employment numbers are," he said. "But at the heart of the market's resilience is, well…the Magnificent Seven." The indexes closed in the red on Friday as investors worried about a much weaker-than-expected labor report and President Donald Trump's modification of "reciprocal" tariffs on a number of countries. But stocks reversed course on Monday, and the Dow Jones Industrial Average jumped 1.34%, the S&P 500 added 1.47% and the Nasdaq Composite surged 1.95%. The market doesn't seem to be concerned that Trump suddenly fired the Bureau of Labor and Statistics Commissioner, Erika McEntarfer, and accused her of manipulating jobs data, Cramer said. Many of stocks that had been strong on Thursday but sank on Friday proceeded to recoup their losses during Monday's session, he pointed out. Cramer reviewed recent earnings from the tech titans, starting with Microsoft. He called the quarter "flawless," saying the company seems to be doing well in every segment of business. He noted that its cloud infrastructure division, Azure, saw a huge acceleration in growth. Cramer was also impressed with some figures from Meta's recent report, especially management's claim that 3.5 billion people use at least one Meta product a day. Alphabet is seeing success throughout the company, Cramer said, including its Google search business, Youtube and AI product, Gemini. He also said the Waymo business is building a nice lead over the rest of the autonomous vehicle space. Apple had a "tremendous" report, Cramer continued, emphasizing its better-than-expected growth. He was encouraged by management's comments on artificial intelligence innovations in the future. Amazon also did well, Cramer continued, with good results from retail sales and advertising revenue, as well as decent numbers from the web services division. While Cramer said Tesla's vehicle business is poor, he said it's doing very well as a tech company. He suggested it's worth owning for its autonomous driving and robots. Although Nvidia has yet to report, Cramer expressed optimism about the chipmaker and demand for its products. "Even though the Mag Seven has one hand tied behind its back with Tesla, we had tepid reactions to Apple and Amazon's numbers," he said. "The fact is that these companies, loaded with cash, not outrageously expensive — nation states, I call them — with multiple revenue streams and tight expenses, just can't be beat by any stretch of the numbers or the imagination." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club Charitable Trust owns shares of Nvidia, Meta, Microsoft, Apple, Amazon and Alphabet.


Gizmodo
33 minutes ago
- Gizmodo
Apple CEO Tim Cook Calls AI ‘Bigger Than the Internet' in Rare All-Hands Meeting
In a global all-hands meeting hosted from Apple's headquarters in Cupertino, California, CEO Tim Cook seemed to admit to what analysts and Apple enthusiasts around the world had been raising concerns about: that Apple has fallen behind competitors in the AI race. And Cook promised employees that the company will be doing everything to catch up. 'Apple must do this. Apple will do this. This is sort of ours to grab,' Cook said, according to Bloomberg, and called the AI revolution 'as big or bigger' than the internet. The meeting took place a day after Apple reported better than expected revenue in its quarterly earnings report, and that sent the company's stock soaring. The report came in a week already marked by great tech earnings results, partially driven by AI. But unlike Meta and Microsoft, Apple's rise in revenue was attributable to iPhone sales and not necessarily a strength in AI. In the earnings call following the report, Cook told investors that Apple was planning to 'significantly' increase its investments in AI and was open to acquisitions to do so. He also said that the company is actively 'reallocating a fair number of people to focus on AI features.' Cook echoed those sentiments in Friday's meeting, saying that the company will be making the necessary investments in AI to catch up to the moment. Apple has been working on integrating advanced AI into its product lineup for the past year or so under its Apple Intelligence initiative, which the company unveiled at the June 2024 Worldwide Developers Conference. The move was met by celebration and criticism even then: Apple's big bet on AI was coming a good year or so after competitors like OpenAI, Google, Microsoft, and Meta scaled up their offerings. Even so, the company's progress on Apple Intelligence has been slow. Apple was supposed to unveil an AI-enhanced Siri earlier this year, and even released ads for the new iPhone with AI-enhanced Siri capabilities, but the Cupertino giant pushed that reveal back at the last minute, reportedly to next spring, though nothing is officially confirmed. The switch-up caused major backlash from investors and customers, two major lawsuits, and a complete corporate overhaul. Cook said on Friday that 12,000 workers were hired in the last year, with 40% of them joining research and development teams. The leadership overhaul following the fallout of LLM Siri has 'supercharged' the company's work in AI development, senior vice president of software engineering Craig Federighi said at the meeting. According to Federighi, the main problem with the LLM Siri rollout was that Apple tried to build a 'hybrid architecture' that utilized two different software systems. That plan has now been scratched, and Federighi seemed confident in LLM Siri's future this time around, claiming that the new 'end-to-end revamp of Siri' will now be delivering 'a much bigger upgrade than we envisioned.' Also key to the new AI strategy, according to Cook, is chip development. Apple has been working on designing in-house AI chips for some time now, according to a Wall Street Journal report from last year, in a project internally code-named ACDC (standing for Apple Chips in Data Center). The tech giant has reportedly teamed up with Broadcom to develop its first AI chip code-named Baltra, according to a report last year in The Information, and Apple is expecting to begin mass production by 2026. Despite being a global leader in tech and a household name in consumer electronics, Apple is nowhere near the top when it comes to the AI race. But while that scares some Apple fans and investors, others think it's actually kind of on-brand. Tim Cook indicated Friday that he belongs to the latter camp. 'We've rarely been first,' Cook said at the meeting. 'There was a PC before the Mac; there was a smartphone before the iPhone; there were many tablets before the iPad; there was an MP3 player before iPod.' Cook has a point. Apple isn't necessarily known for spearheading new technology, but the company's strength comes from perfecting said technology and making products that become highly dominant in their respective markets. And if Apple makes the right moves in developing and scaling its AI product offerings, Cook could potentially add AI to that list as well.
Yahoo
an hour ago
- Yahoo
Axon (NASDAQ:AXON) Reports Upbeat Q2, Full-Year Outlook Slightly Exceeds Expectations
Self defense company AXON (NASDAQ:AXON) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 32.8% year on year to $668.5 million. The company's full-year revenue guidance of $2.69 billion at the midpoint came in 1.2% above analysts' estimates. Its non-GAAP profit of $2.12 per share was 45% above analysts' consensus estimates. Is now the time to buy Axon? Find out in our full research report. Axon (AXON) Q2 CY2025 Highlights: Revenue: $668.5 million vs analyst estimates of $641 million (32.8% year-on-year growth, 4.3% beat) Adjusted EPS: $2.12 vs analyst estimates of $1.46 (45% beat) Adjusted EBITDA: $171.6 million vs analyst estimates of $160.7 million (25.7% margin, 6.8% beat) The company lifted its revenue guidance for the full year to $2.69 billion at the midpoint from $2.65 billion, a 1.5% increase EBITDA guidance for the full year is $675 million at the midpoint, in line with analyst expectations Operating Margin: -0.2%, down from 6.7% in the same quarter last year Free Cash Flow was -$114.7 million, down from $75.3 million in the same quarter last year Market Capitalization: $57.8 billion Company Overview Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Axon's 32.3% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Axon's annualized revenue growth of 32.4% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. This quarter, Axon reported wonderful year-on-year revenue growth of 32.8%, and its $668.5 million of revenue exceeded Wall Street's estimates by 4.3%. Looking ahead, sell-side analysts expect revenue to grow 23.2% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is healthy and indicates the market is baking in success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Axon was profitable over the last five years but held back by its large cost base. Its average operating margin of 1.8% was weak for an industrials business. On the plus side, Axon's operating margin rose by 17.7 percentage points over the last five years, as its sales growth gave it immense operating leverage. This quarter, Axon's breakeven margin was down 6.9 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Axon's EPS grew at an astounding 45.6% compounded annual growth rate over the last five years, higher than its 32.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into Axon's quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Axon's operating margin declined this quarter but expanded by 17.7 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Axon, its two-year annual EPS growth of 46.5% is similar to its five-year trend, implying strong and stable earnings power. In Q2, Axon reported adjusted EPS at $2.12, up from $1.20 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Axon's full-year EPS of $7.06 to shrink by 6.1%. Key Takeaways from Axon's Q2 Results We were impressed that Axon beat analysts' revenue and EBITDA expectations this quarter. Looking ahead, full-year revenue guidance was raised, showing a strong demand environment. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 4.1% to $773 immediately following the results. Sure, Axon had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.