Modernising applications is central to organisational agility and innovation, with outdated systems challenging progress and carrying risks. Discover how Generative AI can help organisations approach and accelerate application modernisation, tackling legacy challenges like technical debt and inefficiencies.
Applications are fundamental to modern organisations and if effectively cared for, move from being a supporting function of an organisation to a central element of its operational and strategic capabilities. Free from outdated systems and thinking, modern applications empower organisations to operate with greater agility, translating to faster time-to-market for new products and services that better answer current and future customer needs.
On the other hand, outdated legacy applications can be slow and frustrating, threatening revenue and business risk. With outdated interfaces, frustrated customers, and missed revenue opportunities, there is an urgency for modernisation and there are risks of inaction. What were once the latest and greatest, now may be incompatible with emerging software and platforms, hindering innovation. While some businesses might opt to replace these, many prefer modernisation – overhauling old tech incrementally, creating a more innovative solution that allows for safe and frequent updates into the future. Especially in the case that these apps still fulfil at least one key function.
While almost 70% of technology leaders find that technical debt hinders their ability to innovate and is a leading cause of productivity loss, organisations often face significant challenges when modernising or retiring legacy systems.1 These legacy systems are often plagued by poor documentation, lost knowledge, and complex architecture, making modernisation projects complex and time-consuming. However, Generative AI presents a radical rethinking of application modernisation, making it faster, easier, and more affordable – enabling organisations to keep pace with rapid technological advancements.
Create a sustainable path to continued growth and innovation. Download our latest app modernisation guide to find out how your can transform your legacy technology with AI-enabled modernisation.
Generative AI provides the opportunity to modernise applications that were previously too costly or complex to attempt before, helping overcome both technical and financial barriers. It has proven to accelerate modernisation efforts by simplifying complex processes and allowing for quicker delivery of improved products and services, with 79% of executives attributing Generative AI in app modernisation projects to greater business agility.2 Where can organisations start with smarter app modernisation?
Automated code analysis: AI-enabled code analysis and optimisation minimises manual intervention, cutting down development time significantly. Its ability to analyse large codebases can quickly identify potential vulnerabilities and offer advanced recommendations for optimising code structure. This not only ensures a higher level of security but also results in cleaner, more maintainable, and efficient code.
Enhanced testing and quality assurance: AI can automate various aspects of the testing phase, including test case generation, quality checks and smarter bug detection. This not only helps catch and fix issues earlier but also accelerates delivery times, allowing the deployment of better software, faster.
AI Assisted refactoring: AI-enabled tools can now detect complex patterns and provide advanced recommendations for code structure, enabling teams to transition from monolithic architectures to modern ones more efficiently.
The augmentation of modern AI tooling enables a significant shift from technical debt to technical wellness, signifying a faster, more iterative approach to addressing legacy tech rather than letting it accumulate. With software developers spending an estimated 33% of time on tech debt, the allocation of resources towards maintaining outdated systems limits an organisation's capacity to invest in and implement new, potentially game-changing technologies.3 Approaching modernisation with an AI-enabled technical wellness lens allows organisations to reallocate team members from maintaining legacy apps to focusing on high value projects.
To fully embrace AI-enabled modernisation, organisations should ensure they are prepared to adopt and utilise new technologies, processes and strategies effectively at scale, in a way that minimises risk and maximises value. Enterprise readiness ensures organisations have the foundational elements in place to effectively leverage AI in modernisation projects, including digital maturity, change management and a clear plan for adoption – backed by leadership buy-in and a workforce that is ready to embrace new technology and ways of working. Critical to this is a willingness to take risks and develop proven use cases for AI within the business, that goes beyond the novelty of the technology to deliver tangible business value.
Equally important, is focusing on not only the impact of change but also building a culture of tangible exploration and leveraging the foundations of excellent software engineering practices. A workplace culture that is receptive to innovation, experimentation and learning is more likely to invest in upskilling their workforce and technology. Encouraging knowledge sharing and experimentation with new tooling can help build trust, confidence and uptake among employees, ultimately helping teams see AI as a tool that complements their strengths and increases their capacity. If organisations prioritise a culture that embraces workforce augmentation, Generative AI could increase worker productivity by up to 15% by 2038 in New Zealand, freeing up an estimated 275 hours per worker annually to focus on higher-value activities.4
By undertaking modernisation efforts with AI, organisations can tackle legacy technology with a more integrated and holistic approach, ensuring consistent and continuous modernisation across the full technology stack. Keeping pace with technological advancements and creating new opportunities for growth and innovation. Generative AI tools for code analysis, testing, and refactoring allow businesses to speed up their modernisation efforts, increase productivity, and deliver products and services that end customers will love, faster. Only the tip of the iceberg in terms of capability has been seen and the discussions around leveraging AI should focus on better quality outcomes for organisations and the human value within that.
Keeping your technology stack up to date is crucial for maximising the potential of AI. ClearPoint’s AI Technology Modernisation services help you update and upgrade your existing systems to support advanced AI capabilities. Whether it’s refactoring legacy applications or integrating new AI tools, we ensure that your infrastructure is ready to support the latest AI innovations, helping you stay ahead in a competitive landscape.
1 Deloitte Insights, Tech Trends 2024, (Deloitte Development LLC., 2023)
2 The CEO’s Guide to Generative AI. (IBM Institute for Business Value, 2023)
3 Deloitte Insights, Tech Trends 2024, (Deloitte Development LLC., 2023)
4 New Zealand’s Generative AI Opportunity. (An Accenture and Microsoft report, 2024)