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UK Firms Lean on Old Tech Amid AI Boom
17 Sep
Summary
- 57% of UK organizations extended legacy system use instead of replacing them.
- Nearly half of UK businesses are scaling AI adoption significantly.
- Over 75% of UK businesses exceeded modernization budgets, delaying projects.
New research indicates a notable trend in the UK where organizations are opting to extend the use of legacy systems instead of undertaking full replacements. This approach is occurring even as nearly half of UK businesses actively scale their adoption of Artificial Intelligence (AI) technologies.
This reliance on older tech is partly a consequence of IT modernization efforts exceeding budget expectations. Over three-quarters of UK businesses have reported going over budget, with more than two-thirds consequently pausing or abandoning modernization plans. Consequently, many firms are focusing on upgrading existing hardware like PCs and servers with enhanced storage and RAM to support modern applications and AI initiatives.
The research highlights a shift in modernization strategies, with a growing emphasis on augmenting rather than replacing older systems. AI is increasingly seen as a catalyst for modernization, with a significant rise in decision-makers believing it accelerates these efforts. Experts suggest that organizations that can effectively distinguish between systems needing replacement versus augmentation will gain a competitive advantage.
