Global Survey Insights on AI-Driven Demand in IT
A recent Modernization Report from Kyndryl, based on feedback from 2,000 business and technology leaders across various industries, sheds light on how organizations are approaching AI-driven modernization.
Key Findings:
- Delayed Modernization: Nearly 50% of organizations are behind on their modernization efforts, despite it being a top priority.
- Negative Impact: A staggering 98% experienced adverse business effects due to these delays.
- AI as a Catalyst: AI is shifting expectations and driving increased use of technology rather than consolidation.
- Agentic AI Adoption: Companies utilizing agentic AI report significantly faster modernization progress, with 67% of adopters on track with their goals compared to 51% of others.
Challenges Identified:
- Understanding Dependencies: Only 9% of respondents fully understand their application dependencies, with many facing undocumented applications.
- Complex Technology Environments: Organizations are moving towards more distributed and complex technology setups to accommodate AI.
Strategic Shifts:
-
Modernization is a Business Priority:
- CIOs are burdened with multiple priorities—AI adoption, cyber resilience, compliance, and business growth. Modernization has transitioned from purely an IT concern to a board-level decision.
-
Sovereignty Considerations:
- Global events are influencing technology choices, with 55% expecting increased demands on network architectures due to regulatory requirements.
-
Increasing Complexity:
- Contrary to expectations of simplification through digital transformation, technology environments are diversifying—emphasizing the need for a coordinated strategy across all business functions.
Conclusion:
Kyndryl’s report illustrates that while AI presents opportunities for modernization, it also complicates technology landscapes. Organizations must re-evaluate their strategies and frameworks to navigate these changing dynamics effectively.
For a deeper dive into Kyndryl’s findings, you can read the full 2026 Modernization Report.
