From Yahoo Finance: 2025-05-12 10:49:00

Enterprises are embracing generative AI tools to tackle technical debt and modernize systems, as revealed by a report from Publicis Sapient and HFS Research. This shift is driven by the need to manage outdated systems, with $1.5 trillion to $2 trillion spent by Global 2000 companies on technical debt.

Coding assistants powered by generative AI are at the forefront of innovation, with IBM and AWS leading the charge in training their tools to decode and refactor legacy applications. This technology has proven especially beneficial in banking, with efficiency gains of approximately 20% reported by Goldman Sachs and other financial institutions.

Publicis Sapient has partnered with AWS to develop AI-driven modernization tools, emphasizing the transformative potential of AI in accelerating modernization initiatives. Despite the vast opportunities presented by this technology, many organizations still struggle to modernize core applications due to legacy technology maintenance consuming nearly 30% of IT budgets.

Sheldon Monteiro, Publicis Sapient EVP, highlights the urgent need for a shift in mindset towards AI adoption, emphasizing its role as a “jackhammer” in breaking through technical debt and accelerating modernization efforts. The prevalence of staff augmentation as a short-term fix for technical debt underscores the importance of reevaluating IT service procurement strategies.

Read more: Enterprises eye AI assistants to modernize systems