AI's Capacity to Eliminate Technical Debt in Tech Sector
Tech Debt Busting with AI: The New Game-Changer for Modernizing Enterprises
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As chief innovation officers know well, tech debt is a relentless problem, and it doesn't show signs of slowing down anytime soon. Estimates from HFS Research reveal that Forbes Global 2000 companies are shouldering a staggering $1.5 trillion to $2 trillion worth of tech debt. But don't despair, because Artificial Intelligence (AI) might just be the solution you've been waiting for. That's according to a new report from HFS Research and Publicis Sapient, who tout AI as the mighty jackhammer capable of shattering tech debt and propelling enterprises towards modernization.
Phil Fersht, CEO and Chief Analyst at HFS Research, didn't mince words when he stated, "Enterprises need to stop playing with antiquated models and start hammering through the barriers that hold them back. This is the perfect moment to redefine the rules of modernization, and those who don't take decisive action risk being left in the dust."
But what about the reality on the ground? The study shows that just three in 10 enterprises feel they have fully modernized their IT applications. A staggering 25% of enterprises still consider themselves legacy-heavy, while 4% believe they're at risk of becoming obsolete. Apparently, existing IT services are primarily focused on maintaining these outdated systems. However, even though it may seem that every organization has already jumped on the AI bandwagon, the study warns that's not the case. Just 22% of companies are actively scaling AI across multiple IT functions, with a third experimenting with AI in select functions and 27% exploring AI in IT but not yet implementing it.
The report recommends that a successful AI transition should eliminate data silos and unite everything in a harmonious, interconnected value chain accessible by all departments. Governance should be embedded at the foundation through functions such as automated controls and real-time monitoring, breaking away from traditional steering committees and policy hierarchies. AI stewardship should also become a shared responsibility for everyone in the organization.
When it comes to safeguarding data and enhancing cybersecurity, it's not just the responsibility of the CIO anymore. The CFO should be brought into the conversation, especially because data is often used for projections and forecasts, and breaches can result in staggering financial consequences. Abhesh Kumar, Chief Technology Officer at financial advisory firm Springline Advisory, discusses the critical collaboration between CIOs and CFOs in this week's newsletter.
Speaking of collaboration, it's essential for CIOs and CTOs not only to work closely with each other but also to bring the wisdom and resources of the CFO to the table to create a more robust cybersecurity strategy. As Abhesh puts it, "we need to view the risk in the context of the fast-evolving threat landscape. Most organizations are operating in silos. That means CFOs do not really have full visibility on where the data lies and have not really incorporated protecting them or taking any cybersecurity measures as part of their financial risk management."
In other news, Apple is considering offering an unexpected freebie to all iPhone 13 users, Google's stock continues to slide amid antitrust litigation, and there's a new Pope in town. But that's another story for another day.
Stay curious and innovative,Forbes Technologist
Additional insights:- Adopting AI in the enterprise can help eradicate technical debt by enhancing information flow and collaboration, accelerating modernization and rewiring delivery models, changing organizational mindset and operating architecture, detecting, prioritizing, and automating remediation, and preventing future tech debt.- AI can help reduce modernization costs, improve agility and innovation, better align business strategy and technology execution, and increase the scalability of AI adoption across IT functions.- Collaboration between CIOs and CFOs is critical for creating a robust cybersecurity strategy, especially in an era of increasing data breaches and evolving threat landscapes.
- The new game-changer for modernizing enterprises might be Artificial Intelligence (AI), as stated in a report from HFS Research and Publicis Sapient, which claims AI can shatter tech debt and propel enterprises towards modernization.
- Governance should be embedded at the foundation of a successful AI transition within an enterprise, according to the HFS Research and Publicis Sapient report, with functions such as automated controls and real-time monitoring breaking away from traditional steering committees and policy hierarchies.
- The CFO should be brought into the conversation about safeguarding data and enhancing cybersecurity, as data breaches can result in staggering financial consequences, Abhesh Kumar, Chief Technology Officer at financial advisory firm Springline Advisory, discusses in this week's newsletter.
- Collaboration between CIOs and CTOs is essential in creating a more robust cybersecurity strategy, with Abhesh Kumar emphasizing the importance of viewing the risk in the context of the fast-evolving threat landscape.
