Exclusive: Coevolve's Tim Sullivan warns firms on AI connectivity gap

As global enterprises rush to embrace artificial intelligence, many are neglecting the very foundations that make those innovations work - secure global connectivity.

The warning is according to Tim Sullivan, CEO and Co-Founder of Coevolve, who spoke exclusively with TechDay in Australia ahead of the release of the company's inaugural Global Business Connectivity Outlook Report 2025–2026.

"Connectivity gets taken for granted," Sullivan explained.

"You assume it's ubiquitous, but it's really the trusted, secure connectivity that matters."

Founded in Sydney in 2014, Coevolve has grown into a global managed service provider specialising in next-generation network and security technologies. The company now operates across six continents, with clients in 82 countries and partnerships with more than 800 telecommunications and internet service providers.

Sullivan describes the business as "a global managed service company helping multinational corporations adopt next generation network and security technologies."

The Global Business Connectivity Outlook marks Coevolve's first deep dive into how multinational organisations approach connectivity and digital transformation. Drawing on surveys and in-depth interviews with business leaders across four continents, the study highlights a striking paradox.

"There's this paradox between the drivers for growth - AI, digital transformation, innovation - and the lack of focus on global business connectivity," Sullivan said.

"It's being overlooked. There's massive opportunity there, but it's taken for granted."

The audience for the report is broad, ranging from chief information officers to procurement, finance and operations executives. Sullivan said the findings are designed to give business leaders - not just IT specialists - a realistic view of how secure global connectivity underpins every digital initiative.

"These themes of secure global connectivity underpin all of modern business," he explained. "It's not just for IT leaders. It's for anyone responsible for ensuring digital innovation delivers value."

Among the report's key insights is the imbalance between investment priorities. Sullivan noted that almost half of technology budgets are being funnelled into AI, while network architecture accounts for just 8 per cent.

"There's a massive drive to take advantage of the opportunities of AI," he said. "But in that rush, many are overlooking the fact that underpinning all of it is secure connectivity."

The consequences, he warned, can be severe: "If there's not a foundational level of emphasis on secure global connectivity, there's going to be disappointment. There'll be a lack of time to value for those AI initiatives."

Sullivan referenced research suggesting that many enterprises are already underwhelmed by the benefits of AI. "AI hype is at an inflated expectations level," he said. "There's disappointment because the actual material improvement to the business is not matching the promise. One of the reasons for that is the lack of a strong connectivity foundation."

When asked which challenges most threaten successful global expansion - security, technology or compliance - Sullivan was unequivocal.

"Security is top of mind," he said. "Boards are talking about it, but executing at a foundational network and security level is another story. Network and security used to be two separate towers of the IT stack, but now they're converging into one software-defined architecture. That requires a rethink."

He added that while compliance remains a growing burden, the convergence of network and security technology is reshaping how global businesses need to plan their digital defences.

Drawing from Coevolve's experience supporting multinationals across industries, Sullivan outlined three immediate actions enterprises should take to strengthen their global connectivity.

"First, align with the growth agenda," he said. "Then critically re-evaluate how you're approaching network and security today. If you're doing it the same way you were a decade ago, there's a missed opportunity."

He said many businesses can unlock significant savings and agility by embracing new software-defined models. "There's massive cost reduction potential and operational benefits in the ease of doing business," he added. "It's about transforming global business connectivity."

One of the most striking shifts highlighted in the report is the "AI paradox" of data traffic. Sullivan explained that as enterprises integrate AI workflows, their data patterns are changing dramatically.

"The global flows of data traffic are going through a seismic change," he said. "Enterprises need to step back and reassess how their networks are dimensioned. We saw a similar step change when businesses started pushing services to the cloud a decade ago. It's happening again."

Failure to adapt, he warned, will cost companies dearly. "They'll miss opportunities for cost savings, efficiencies, and new market access. There's also a greater risk of security breaches and compliance challenges."

Sullivan likened secure connectivity to the circulatory system of the modern enterprise. "If data is the lifeblood of the organisation," he said, "then connectivity is the network of capillaries ensuring everything flows."

Operating across six continents gives Coevolve unique insight into the diversity of connectivity challenges worldwide.

"It's a very fragmented scene," Sullivan said. "Even within the same continent, there are massive differences. Singapore, for example, has very different capabilities to Vietnam or Myanmar."

Even within Australia, he added, the contrast between urban and remote environments is stark. "You've got head offices in city centres with abundant connectivity, but mining or construction sites in the Pilbara have very different requirements. The devil is in the detail."

Coevolve's expertise, he said, lies in managing that complexity - from selecting diverse ISPs for redundancy to deploying satellite options such as Starlink and Amazon Kuiper for resilience.

The Global Business Connectivity Outlook Report 2025–2026 is the first of its kind for Coevolve, and Sullivan confirmed it will become an annual study.

"We plan to turn it into an annual event to help enterprises benchmark and improve their approach," he said.

Reflecting on its key message, he added: "The real standout is the paradox between growth drivers and the lack of focus on connectivity. It underpins everything - digital transformation, AI enablement, business performance. Yet it's being overlooked."

"We'd highly encourage all enterprises globally to take another look at their network and security layer - and not assume the way it's been done in the past decade is the way it should be done in the next."