AI could help companies tackle tech debt, though few have yet gone all in
AI-driven modernization could be a big part of how organizations tackle their mounting tech debt. The Global 2000 enterprises are carrying $1.5–2 trillion in accumulated tech debt, according to a report from Publicis Sapient and HFS Research.
A total of 80% of enterprise leaders believe AI will improve modernization outcomes, but only one in five respondents claimed to be scaling AI across multiple functions. That is according to a study from Publicis Sapient and HFS Research that surveyed more than 600 IT and business leaders globally across various industries.
While most leaders in tech are bullish on AI’s role in IT, only a few have been able to scale AI across multiple functions. A third of respondents say that they have so far only been experimenting with AI – basically just tinkering.
What’s more, a whole 15% say that they are skeptical of AI and 27% are only exploring possibilities, meaning that nearly half of firms have not even gotten started yet.
“The scale of tech debt facing enterprises is staggering, and overcoming it demands more than incremental change,” said Nigel Vaz, CEO of Publicis Sapient.
“What’s needed is a fundamental shift in how organizations approach transformation. AI is not just a tool – it’s a catalyst for reimagining delivery models and accelerating modernization.”
The results of the study suggest that AI is increasingly being seen as a lever to address tech debt. Firms should look to retire legacy systems and take full advantage of their data. By regearing their IT systems, organizations have a clear opportunity to create additional value with AI-driven efficiency.
The obstacles to adopting AI
So why have so few firms yet to commit to AI, even when they know it is increasingly important for their businesses to stay ahead?
More than half of respondents point to a lack of talent to implement and manage AI tools. Many others cited difficulty with integrating AI into their existing systems; lack of data quality and governance capabilities; and regulatory or ethical concerns.
“AI isn’t the luxury add-on or a shiny new tool we hope will make things better—it’s the only thing that can defuse this crisis,” said Phil Fersht, CEO and Chief Analyst of HFS Research.
“Enterprises need to stop tinkering with outdated models and start smashing through the barriers holding them back. This is the moment to rewrite the rules of modernization, and those who don’t act decisively risk being left behind in the dust.”
Vendors falling short
Though there is a clear desire to move forward with AI adoption, many organizations report being held back by their vendors. Only 10% of enterprise leaders say their vendors are proactively helping them pivot to AI-powered delivery.
When business leaders were asked how well their current IT service providers support future needs, most (33%) were neutral, saying they provide value but are not exactly leading the way in change. Another 25% say their IT service providers are not supporting their future needs very well.
The reality for many organizations is that IT systems – and especially AI-powered systems – are far too expensive and labor intensive to have in-house. A large percentage of companies will look to vendors to provide their IT needs, whether small boutique providers or the ubiquitous services from tech giants like Google, Microsoft, or Amazon.
One of the main takeaways from Publicis Sapient’s survey is that in order to unlock the full potential of AI, companies need to shift from siloed systems to seamless value changes. When AI tools are properly integrated, they have the potential to also enhance governance and decrease labor-intensive outsourcing.
Adoption of generative AI has been keeping up a rapid pace, according to another recent report, which found 95% of US companies report having integrated some type of generative AI tool. US firms are also now allocating more money than ever to generative AI.
