Legacy IT Hinders AI Adoption

Legacy IT systems and traditional operating models are hindering the full potential of AI implementation.

Themes

AI-Driven Transformation

Timeframe

near-term

Subcategories

Artificial Intelligence Corporate Strategy Innovation Management Operational Efficiency

Impact areas

Digital Transformation IT Infrastructure Operational Efficiency

Detailed Analysis

While generative AI is pushing companies towards more agile operating models and systems modernization, legacy systems and outdated processes are creating roadblocks. "Generative AI is the forcing function," says Sabrina McPherson, senior managing director and senior vice president at Publicis Sapient. The immediate efficiency gains demonstrable with generative AI are making the case for operational and IT transformation more compelling. However, fragmented business structures and a disconnect between V-suite and C-suite regarding AI priorities are slowing down progress.

Context Signals

Disconnect between V-suite and C-suite on AI priorities Focus on security and compliance by C-suite vs. machine learning by V-suite Economic challenges delaying modernization efforts

Edge

Companies that successfully navigate these challenges will have a significant competitive advantage. The need for agile operating models may lead to new organizational structures and roles. Investment in IT modernization will become a key differentiator for attracting and retaining talent.

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TRENDS

Keywords

digital transformation innovation technology adoption

The drive to modernize operating models and legacy systems has gone to the back burner for many companies in the last year due to economic challenges. However, generative AI is about to change this significantly, acting as a catalyst for more agile operating models and systems modernization.

Categories for this trend