Cisco report flags organisational friction as a key barrier to AI

A Cisco report reveals that Australian organizations are struggling to defend against AI-driven cyber threats due to internal organizational friction rather than a lack of technology. Despite increased security spending, many companies report that fragmented data and poor coordination hinder their ability to respond effectively.
Why it matters
It highlights a growing trend where human-led bureaucratic delays and poor data governance create critical security vulnerabilities in an era of autonomous AI attacks.
A new Cisco report suggests Australian organisations are struggling to keep pace with AI-driven cyber threats, not primarily because of missing technology but because internal processes and team structures slow down response.
Cisco’s Relentless Defence Report found 93% of Australian organisations experienced a “material, business-disrupting” cyber incident in the past 12 months, with more than 37% involving an AI-enhanced attack. Australia scored 62 out of 100 on the Cisco Defence Index, placing it in the report’s “Reactive” tier and slightly below the global average of 64.
The report argues that as autonomous AI agents can operate in seconds, delays in human-led decision-making—such as approvals, unclear ownership and fragmented data—create governance and security risks. Around 63% of Australian security practitioners surveyed said organisational friction would most improve their cyber defences, ahead of technology-related blockers.
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