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Palo Alto Today
By the People, for the People
Palo Alto CEO Says Enterprise AI Adoption Still an Ongoing Process
Consumers are currently outpacing enterprises in AI adoption, but the CEO expects businesses to catch up over time.
Published on Feb. 21, 2026
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Nikesh Arora, the CEO of Palo Alto Networks, has stated that enterprise adoption of AI tools is currently lagging behind consumer adoption, but he believes businesses will eventually catch up. Arora cited the need for enterprises to lay the proper foundations for AI implementation as a key reason for the slower pace of adoption in the business world compared to consumers. He noted that the most widespread AI application in the workplace so far has been coding assistants, but Palo Alto is also focusing on security and observability as the next areas for enterprise AI.
Why it matters
The disparity between consumer and enterprise AI adoption highlights the challenges businesses face in implementing new technologies at scale. While consumers have more readily embraced AI-powered tools and services, enterprises must navigate complex infrastructure, security, and governance requirements before rolling out AI solutions across their organizations. Palo Alto's perspective provides insight into the ongoing evolution of enterprise AI and the factors that will shape its future adoption.
The details
According to Arora, enterprises are "all laying the groundwork right now" for more widespread AI adoption, which he described as "an arms race to try and see who can get the AI security sort of platform up and running as quickly as we can." One of the key challenges Palo Alto has identified is the need to consolidate AI traffic for greater visibility and monitoring, requiring "a different set of controls and tools." Palo Alto has made recent acquisitions focused on securing AI as part of this effort.
- Palo Alto reported a 15% year-over-year rise in quarterly revenue (to $2.6 billion) in its latest earnings report.
The players
Nikesh Arora
The CEO of Palo Alto Networks, a cybersecurity company.
Palo Alto Networks
A cybersecurity company that is focused on developing AI-powered security and observability solutions for enterprises.
What they’re saying
“We're all laying the groundwork right now. It is … sort of an arms race to try and see who can get the AI security sort of platform up and running as quickly as we can.”
— Nikesh Arora, CEO (techradar.com)
“We also saw steady and strong adoption of AI security, which we expect will be a long term trend.”
— Nikesh Arora, CEO (techradar.com)
What’s next
Palo Alto Networks plans to continue investing in AI-powered security and observability solutions to help enterprises overcome the challenges of widespread AI adoption.
The takeaway
While consumers have rapidly embraced AI-powered tools and services, enterprises face a more complex path to AI adoption. Palo Alto Networks' CEO highlights the need for businesses to lay the proper foundations, including robust security and monitoring capabilities, before they can achieve widespread enterprise-wide AI implementation.
