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Insights from the Thoughtworks and IDC Report on AI and Legacy Systems

In a recent report published by Thoughtworks in collaboration with IDC, startling insights into the state of AI adoption among businesses have come to light. Despite a significant number of enterprises embracing artificial intelligence (AI) technologies, a mere 12% of organizations have successfully transitioned to fully AI-driven operations. This gap in progress showcases a widespread struggle against outdated legacy systems and practices that hold businesses back from realizing the full potential of modernization.

Thoughtworks, recognized as a global leader in technology consulting, conducted this in-depth research titled “Modernization Is No Longer a Project: AI-Enabled Managed Services for Continuous Change.” The findings illuminate a critical disconnect between the uptake of AI and the actual maturity of IT operations, revealing that businesses face numerous hurdles that prevent them from evolving beyond ineffective modernization methods.

Current State of AI Adoption

According to the report, nearly 90% of organizations have incorporated AI tools into their operations. However, the majority remain entrenched in reactive cycles of modernization where only a small fraction, 12%, manage to escape these constraints by adopting a continuous, AI-driven optimization model. This presents a stark indicator of the operational maturity—or lack thereof—within these organizations.

Organizations embracing a more progressive approach to modernization have realized key benefits:

• - Faster Release Velocity: Companies report achieving up to 45% quicker product and feature launches.
• - Improved Security: Shifting toward AI-driven security measures has resulted in a significant 48% decrease in risk exposure.
• - Enhanced Scalability and Maintainability: Up to 36% improvement has been observed in the maintenance and scalability of systems, aligning IT services closely with overarching business goals.

Josh Burks, the Senior Vice President and Global Leader of Managed Services at Thoughtworks, stated, “The era of intermittent application modernization is no longer sustainable.” His comments underscore the report’s findings that a reactive, project-based approach leads to inflated costs, security risks, and substantial negative impacts on human resources.

Transitioning to AI-Driven Operations

The report emphasizes the urgent need for organizations to shift away from fragmentary modernization efforts toward a comprehensive strategy that integrates continuous improvement. Industry leaders are moving towards a human-in-the-loop approach where decision-making is informed by AI, but retains human oversight where necessary for complex challenges.

Jennifer Thomson, AVP Global Services Insights at IDC, points out that “Enterprise security and operations are rapidly becoming AI-led,” yet most organizations are not maturing quickly enough to leverage these advancements fully. The future seems to pivot on companies prioritizing shared risk models that align faster execution and scalability, effectively breaking away from traditional cost structures based solely on manpower.

Moreover, the report highlights a commercial shift in how organizations assess value. Instead of relying on basic uptime metrics, performance is increasingly evaluated based on:

• - Innovation Milestones: 56% of businesses are looking to tie contracts to sustained improvement and innovation.
• - Shared Risk Models: 43% are interested in collaborative risk-sharing models for their modernization projects, enhancing mutual accountability.
• - Value-Based KPIs: Success indicators now focus more on speed, resilience, and user experience rather than old-fashioned metrics like server uptime.

A 180-Day Action Plan

To assist organizations in evolving, Thoughtworks proposes a 180-day action plan aimed at demonstrating value through pipeline intelligence and robust AI-guided infrastructure remediation. This focus on upskilling employees in artificial intelligence and machine learning has been identified as a top priority across various sectors, emphasizing the need for ongoing education to sustain the pace of innovation.

As the report reveals, the successful alignment of AI tools with business objectives is proving to be a defining characteristic of modern organizations. By embracing continuous modernization, organizations can transition from outdated systems, enhance operational efficiency, and ultimately cultivate environments that can adapt to the rapidly-evolving technological landscape.

Read more about how Thoughtworks continues to lead the charge towards AI-enabled modernization. Discover their various services, strategies, and how they help organizations overcome hurdles in the adoption of cutting-edge technology.