Global enterprises are facing an unprecedented challenge: a staggering $1.5–2 trillion in accumulated technology debt. This tech debt—outdated systems, fragmented architectures, and legacy processes—acts as a brake on innovation, agility, and growth. Despite 30% of IT budgets being allocated to modernization, only a fraction of organizations have successfully modernized their core applications. The result? Businesses are struggling to keep pace with market demands, customer expectations, and the rapid evolution of digital technologies.
A recent report from Publicis Sapient and HFS Research underscores the urgency of this crisis. The findings are clear: incremental change is no longer enough. Enterprises must fundamentally rethink their approach to modernization, and artificial intelligence (AI) is emerging as the catalyst for this transformation.
AI is not just another tool in the modernization toolkit—it is the force multiplier that can break through the barriers of legacy systems and outdated delivery models. According to the report, 80% of enterprise leaders believe AI will improve modernization outcomes. Yet, only one in five organizations are scaling AI across multiple functions, and nearly half have not begun working with AI at all. The gap between aspiration and execution is wide, and the stakes are high.
AI-driven modernization enables organizations to:
A pivotal trend identified in the research is the move from staff augmentation and traditional IT services to services-as-software. This model, coined by HFS Research, describes a future where technology—not just people—delivers services. Three in four enterprise leaders expect a pivot to this model, driven by the need for faster innovation, operational agility, cost savings, and a more effective approach to reducing tech debt.
Services-as-software leverages AI to automate routine tasks, embed intelligence into workflows, and deliver outcomes at scale. It enables organizations to move beyond maintaining legacy systems and focus on transformation, innovation, and value creation.
Despite the promise of AI, significant barriers remain:
These challenges are compounded by disconnects between IT and business leaders, misaligned success metrics, and a lack of proactive support from existing vendors. In fact, 71% of enterprise leaders are ready to switch providers for better AI execution and leadership.
To help organizations overcome these barriers, Publicis Sapient brings a proven, integrated approach to AI-driven modernization. At the heart of this approach is the SPEED model—Strategy, Product, Experience, Engineering, and Data & AI. This framework enables end-to-end execution, from vision and strategy to implementation and value realization.
Publicis Sapient’s proprietary AI platforms, such as Sapient Slingshot and Bodhi, are designed to accelerate the software development lifecycle and scale AI adoption across the enterprise. These platforms:
For example, Sapient Slingshot streamlines legacy modernization and mainframe migration, while Bodhi offers a robust ecosystem for deploying and scaling generative AI use cases. These tools are complemented by deep partnerships with leading cloud providers, including AWS and Google Cloud, ensuring clients have access to the latest AI and cloud innovations.
Publicis Sapient’s AI-driven modernization approach is already delivering measurable outcomes for clients across industries:
These examples illustrate how AI-driven modernization is not just about technology upgrades—it’s about enabling new business models, driving growth, and building resilience for the future.
To break free from the constraints of tech debt and realize the promise of services-as-software, CIOs and CTOs should:
As a recognized market leader in AI, cloud, and data modernization, Publicis Sapient combines deep industry expertise, innovative platforms, and a proven SPEED methodology to help organizations tackle tech debt and accelerate their journey to services-as-software. With a track record of delivering transformative outcomes and a commitment to ethical, scalable AI, Publicis Sapient is the partner of choice for enterprises ready to rewrite the rules of modernization.
Ready to smash through tech debt and unlock the future of services-as-software? Discover how Publicis Sapient can help you lead the next wave of digital business transformation.
For more insights, visit publicissapient.com.