You’ve identified the use cases. You’ve built the business case. You’re ready to deploy AI on the shop floor—predictive maintenance, machine vision for real-time quality control, digital twins, autonomous robotics, virtual PLCs. And then the project stalls.
It’s not the technology that stops you. It’s the network underneath it.
This is the central finding of a new report from ARC Advisory Group, Why Modern Networks are Critical for AI-Ready Manufacturing Operations. After evaluating what it takes to scale AI and software-defined industrial automation in manufacturing environments, ARC reached a clear conclusion: without a modern, secure, high-performance industrial network, the most ambitious transformation initiatives simply cannot succeed.
Manufacturers are under relentless pressure—to improve productivity, reduce costs, accelerate time-to-market, and compete in an increasingly software-driven industry. An increasing number of manufacturers are now embracing AI as revealed in the newly released survey, 2026 State of Industrial AI Report for Manufacturing, which notes that 59% of manufacturers are actively deploying AI. Emerging technologies like shop-floor virtualization, AI-powered processes, and cloud-connected production systems promise to help. But they come with stringent requirements that legacy networks were never designed to meet.
As Chantal Polsonetti, Vice President at the ARC Advisory Group puts it: “Primary implementation hurdles to adoption of advanced technologies often revolve around the limitations of existing network infrastructure. Issues with network performance, flexibility, scalability, reliability, resilience, security, manageability, and observability can stall or derail critical modernization initiatives.”
This isn’t a niche problem. It’s the defining obstacle for manufacturers who are serious about digital transformation.
Arno Thijssen, Senior Principal Engineer – Process and Automation at Keurig Dr. Pepper, has seen it firsthand. While his team has identified many promising AI use cases, they’ve recognized that sustainable success depends on getting the foundation right first. In response, Keurig Dr. Pepper is standardizing its networks for higher bandwidth, stronger security, and tighter collaboration between OT and IT teams.
A modern network isn’t simply a faster one. According to ARC, it must be an enterprise-grade OT network that is secure by design—capable of delivering the determinism and resilience that industrial environments demand, while also meeting the security, scalability, and bandwidth requirements of AI-driven applications.
That means:
Audi’s Edge Cloud For Production (EC4P) initiative is a compelling proof point. By virtualizing shop-floor assets—HMIs, industrial PCs, and PLCs—Audi has decoupled software from hardware, enabling faster upgrades, lower costs, and a scalable infrastructure ready for AI-driven predictive maintenance and quality control.
Cisco provides the critical networking infrastructure underpinning EC4P, ensuring high availability from the shop floor to the data center. As ARC notes, the initiative “serves as a powerful example of how a forward-thinking approach to network architecture can unlock the full potential of software-defined manufacturing and AI-driven processes.”
Cisco, the leading enterprise and industrial network infrastructure supplier, offers a comprehensive suite of networking and security solutions desigend to help manufacturers build future-ready operations.
Chantal Polsonetti, Vice President at the ARC Advisory Group
After a thorough evaluation of the vendor landscape, ARC identified Cisco as the only industrial networking vendor with the full portfolio manufacturers need to succeed. That assessment rests on four pillars:
It’s not just ARC saying this either. Their conclusion is supported in the 2026 State of Industrial AI survey in which 63% of manufacturers said Cisco would be their top choice for building the AI-ready networking infrastructure they need.
The path to AI-ready manufacturing runs through the network. Whether you’re evaluating your current infrastructure, planning a modernization initiative, or ready to move forward, the right foundation makes the difference between a project that scales and one that stalls.
Here’s how to go deeper:
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