Palo Alto CEO says AI not yet great for business

Nikesh Arora sees little enterprise AI adoption beyond coding assistants, buys Koi for what comes next

Published on Feb. 20, 2026

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Palo Alto Networks CEO Nikesh Arora says business adoption of AI technology lags consumer take-up by at least a couple of years, except for the use of AI coding assistants. Arora believes enterprises are not yet showing widespread implementation of AI beyond these limited use cases.

Why it matters

As a leading cybersecurity firm, Palo Alto Networks' perspective on enterprise AI adoption provides insight into the current state of AI implementation across industries. Arora's comments suggest businesses are still cautious about fully embracing AI technology, even as consumer-facing AI applications become more prevalent.

The details

Arora stated that while AI is being rapidly adopted by consumers, businesses have been slower to implement the technology, with the exception of AI-powered coding assistants. He believes enterprises are waiting to see how AI develops before making significant investments. To prepare for the next phase of AI, Palo Alto Networks recently acquired Koi, a startup focused on developing the next generation of AI systems.

  • Nikesh Arora made these comments on Tuesday, February 18, 2026.

The players

Nikesh Arora

The CEO of Palo Alto Networks, a leading cybersecurity firm.

Palo Alto Networks

A cybersecurity company that provides firewall and cloud-based security solutions to enterprises.

Koi

A startup acquired by Palo Alto Networks that is focused on developing the next generation of AI systems.

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What they’re saying

“If enterprises are implementing AI, they're not showing it to Palo Alto Networks CEO Nikesh Arora, who on Tuesday said business adoption of the tech lags consumer take-up by at least a couple of years – except for coding assistants.”

— Nikesh Arora, CEO (The Register)

The takeaway

Palo Alto Networks' CEO's comments suggest enterprises are still cautious about fully embracing AI technology, even as consumer-facing AI applications become more prevalent. This highlights the ongoing challenges businesses face in effectively implementing AI solutions and the need for further advancements in the technology to drive wider enterprise adoption.