Policy·Europe

Cisco Study Reveals AI Will Multiply WAN Traffic by Ninefold

Global AI Watch · Editorial Team··5 min read
Cisco Study Reveals AI Will Multiply WAN Traffic by Ninefold
Editorial Insight

AI-driven network traffic surge will re-shape the WAN landscape by 2035, demanding strategic infrastructural shifts.

Key Points

  • 1First comprehensive look at AI's impact on WAN since 2020.
  • 2Shift in network infrastructure demands new QoS approaches.
  • 3Signals increased global dependency on resilient IT frameworks.

What Changed

Cisco's latest study highlights the transformative impact AI agents will have on Wide Area Networks (WAN), predicting a ninefold increase in network traffic for businesses adopting these technologies by 2035. This follows earlier studies from 2020 but offers a more detailed projection on the scale of the impact. AI-generated traffic, particularly from agents operating at machine speeds, poses new challenges and necessitates a reconsideration of network design and infrastructure.

Strategic Implications

If AI agents significantly increase network traffic, companies and network architects must pivot to more advanced Quality of Service (QoS) and cybersecurity strategies. This shift empowers network providers and cybersecurity firms to innovate and charge premium rates for enhanced services. Organizations failing to upgrade could face significant performance issues, potentially impacting their competitive edge.

What Happens Next

Expect significant investments in network infrastructure upgrades and increased demand for sophisticated QoS solutions by the late 2020s. Policymakers may also develop new regulations to ensure data management and cybersecurity keep pace with these developments, potentially issuing guidelines by 2027 to safeguard network integrity and user privacy.

Second-Order Effects

The exponential growth in WAN traffic could lead to supply chain pressures on hardware components, primarily affecting GPU and storage device markets. Additionally, sectors like telecommunications might need to expand data center capacities, impacting energy consumption and regulatory frameworks around data localization and cross-border data flows.

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