AI is no longer a futuristic aspiration—it is rapidly becoming the engine of enterprise operations, according to F5’s 2025 State of Application Strategy (SOAS) Report. The report, based on a global survey of IT decision-makers, reveals that 96% of organisations have deployed AI models, a sharp rise from just 25% in 2023. This shift signifies an industry-wide move from experimental use to embedding AI in business-critical functions like traffic management, cost optimisation, and zero-day threat mitigation.

Almost three-quarters of respondents (72%) plan to use AI to optimise application performance, while 59% aim to integrate AI for cost control and security automation. AI gateways, now in use by 50% of organisations—with another 40% expected to adopt them within a year—are central to this evolution. These gateways are increasingly used to manage AI models, control data access, and protect sensitive information.

Despite AI’s growing prominence, organisations continue to face operational hurdles. Security of AI models remains a top concern, with 60% of organisations citing manual workflows and 54% identifying skill shortages as key impediments. The cost of building and managing AI workloads is also rising, flagged by 48% of respondents—up from 42% last year.

Data readiness is another critical barrier. Over a third (39%) of organisations admit to lacking a scalable data infrastructure, and 34% report trust issues due to AI bias or hallucination risks. API complexity further exacerbates operational challenges, with 58% of respondents viewing APIs as a pain point. Integration efforts—including custom scripting and vendor management—consume substantial IT bandwidth.

Hybrid cloud environments are becoming the new normal, with 94% of organisations distributing applications across public and private clouds, data centres, and edge computing setups. Key motivations include operational flexibility, app resilience, and cost control. Notably, 79% of organisations have repatriated at least one workload from the public cloud to on-prem or colocation infrastructure, a massive increase from 13% four years ago.

In Asia-Pacific and Japan (APCJ), 49% of organisations are already using AI gateways, with another 46% planning implementation within the next year. Top use cases include AI model protection (66%), data leakage prevention (61%), and monitoring AI traffic (61%). Yet, 53% still struggle with data quality, and 45% are constrained by AI operating costs. Hybrid AI deployment, while beneficial, presents its own complexities, including inconsistent security strategies and fragmented operational workflows.

Looking ahead, the report emphasises the need for programmable IT environments that standardise and automate application delivery and security policies. By 2026, AI is projected to evolve from isolated functions to full-scale orchestration of IT operations. Platforms with natural language interfaces and programmable systems will eliminate traditional management consoles, driving unprecedented efficiency.

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“Flexibility and automation are no longer optional—they are essential,” said Cindy Borovick, Director of Market and Competitive Intelligence at F5. “Organisations that build programmable foundations will unlock the full potential of AI, driving transformative customer experiences at scale.”

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