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Palo Alto Networks CEO Nikesh Arora reports minimal enterprise AI adoption beyond coding assistants, noting consumer usage significantly outpaces business implementation. He compares the slow enterprise uptake to the cloud computing transition, which took 2-3 years to gain traction. The company is positioning itself for future AI security needs through acquisitions including Koi (agentic AI endpoint security), Chronosphere, and CyberArk. Despite 15% year-over-year revenue growth to $2.6 billion in Q2, investors reacted negatively with a 6% stock drop, possibly due to profit margin concerns.

Palo Alto CEO says AI isn’t great for business, yet