Tech Retirement Crisis: Vulnerable Industries And What They Must Do
The retirement of veteran tech experts is a wake-up call for industries still tethered to outdated systems—the challenge isn't just replacing those systems, but also preserving the knowledge that keeps them running. Below, members of Forbes Technology Council highlight the industries most at risk and share what leaders can do now to transfer essential know-how and prepare the next generation to step in with confidence.
1. Ports
Ports still rely on terminal operating systems (TOS) and EDI standards from the 1980s. Young engineers face a steep learning curve with cryptic interfaces and minimal documentation. To future-proof, leaders must digitize maritime workflows using AI-integrated APIs while creating simulation labs for cross-training younger talent on legacy systems—before the sea of knowledge ebbs away. - Jagadish Gokavarapu, Wissen Infotech
2. Financial Services
Financial services is one industry that relies on legacy systems younger tech professionals can't maintain. To ensure continuity as technology leaders retire, organizations must urgently modernize by migrating to the cloud, unlocking AI and attracting top talent for future growth. - Chetan Mathur, Next Pathway
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
3. Automotive; Heavy Machinery
Industries like automotive and heavy machinery rely on proprietary software and specialized control systems. As experienced engineers retire, there is a risk of knowledge gaps emerging. Leaders should implement mentorship programs in which older professionals share their expertise with their younger counterparts. Investing in intuitive training materials can also help bridge the generational divide. - Neel Sendas, Amazon
4. OT And Manufacturing
Operational technology and manufacturing often run on legacy operating systems and hardware and rarely incorporate AI into critical workflows. While these sectors require deterministic outcomes, pairing AI models with strict guardrails—such as limiting outputs to a predefined set of approved results—can still boost efficiency and innovation without introducing undue risk to sensitive environments. - Keren Katz, Tenable
5. Corporate Banking
Corporate banking risks falling behind as legacy systems outlast the talent trained to maintain them. To stay competitive, banks must modernize with interoperable cloud, SaaS and AI solutions; ensure structured knowledge transfer between generations; and foster a culture of innovation to future-proof operations, enhance compliance and meet rising customer expectations. - Alex Ford, Encompass Corporation
6. Professional Services
Many professional services firms still rely on outdated tools—spreadsheets, siloed systems and tribal knowledge held by a few. Younger talent isn't trained on or drawn to these ways of working. As experts retire, firms risk losing both continuity and edge. Leaders must modernize workflows and capture knowledge in connected, accessible systems to future-proof their teams and retain their advantage. - Sarah Edwards, Kantata
7. Energy
The energy sector still leans heavily on legacy SCADA systems and custom PLC setups that younger professionals rarely encounter. As veteran engineers retire, leaders should invest in cross-generational training programs and gradually modernize infrastructure—bridging knowledge gaps before they become operational risks. - Kirill Sagitov, COYTX GLOBAL LLC
9. Healthcare
The healthcare industry continues to rely on legacy technology, such as EHR systems built with platforms like MUMPS, a language that is now unfamiliar to most new professionals. As experienced staff retire, younger pros lack the skills to maintain them. Leaders should prioritize mentorship, detailed documentation and phased modernization to ensure continuity and prepare for a tech-forward future. - Tannu Jiwnani, Microsoft
10. Aerospace
The aerospace industry still relies on legacy systems, such as Fortran-based simulations and outdated telemetry tools. As seasoned experts retire, leaders must document key knowledge, modernize tools and build mentorship pipelines. Just as NASA blends Apollo-era wisdom with Artemis-era innovation, bridging generations ensures mission continuity and tech evolution without losing institutional memory. - Shelli Brunswick, SB Global LLC
11. Retail
Retail is a prime example of an industry still dependent on legacy systems, siloed data and the deep expertise of long-tenured employees. As these experts retire, leaders should accelerate the shift to unified commerce platforms, modernize tools for frontline staff, and leverage AI for both onboarding and customer engagement to future-proof their operations. - Zornitza Stefanova, BSPK
12. Global Logistics
Global logistics runs on fragile legacy EDI pipes, which younger pros rarely touch. Instead of patching, leaders should build a blockchain-backed trade graph. Pair retiring EDI experts with AI agents to translate workflows, compress the past and future-proof the industry. - Akhilesh Sharma, A3Logics Inc.
13. Utilities
The utilities industry still runs on SCADA and COBOL—tools young tech talent rarely encounters. Leaders must build simulation labs for training, capture tacit knowledge digitally and layer modern APIs over core systems to ensure continuity before the grid's human backbone retires. - Mark Mahle, NetActuate, Inc.
14. Broadcast Media
The broadcast media industry still runs on decades-old video playout servers, SDI hardware and proprietary codecs. As tech veterans retire, leaders must digitize tribal knowledge, modernize with IP-based workflows and train new talent through virtual production labs—before the signal fades on this critical yet aging infrastructure. - Roman Vinogradov, Improvado
15. Life Insurance
The life insurance industry uses policy administration systems that need to be maintained for the lifetime of the insured (which is usually up to 40 or 50 years). The older books of business need to be migrated to modern systems to mitigate the risk of a loss of support due to retiring professionals. - Arnab Mukhopadhyay, VNS Health
16. Government Agencies
Too many government agencies run COBOL systems, managing payments on half-century-old infrastructure. We can prioritize 'bridge' roles, pairing retiring experts with younger staff to transfer knowledge of both technical systems and the legal frameworks behind them. Leaders must modernize while preserving privacy protections through gradual adoption of new technologies. - Nick Hart, Data Foundation
17. Airlines
The airline industry is deeply reliant on legacy reservation and operations systems built in languages like Fortran and TPF, which are unfamiliar to modern developers. Leaders should launch dual-track modernization: Pair retiring experts with junior engineers on active systems while building cloud-native replacements. Preserve tribal knowledge now or risk turbulence tomorrow. - Sandipan Biswas
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
23 minutes ago
- Forbes
Why Leaders Should Challenge Generational Narratives Around AI
Holger Reisinger, Senior Vice President at Jabra—a global brand that engineers technology that makes life look and sound better. Concerns about job displacement have shadowed AI from its inception. Yet, as AI evolves, the narrative has shifted from fearing replacement to embracing AI fluency as a critical strategic asset. Today, with 96% of executives claiming to have implemented an AI strategy within at least one department of their organization, the key differentiator is no longer just adoption but optimizing AI integration to unlock measurable business value. Leaders increasingly recognize that AI's true value comes not from standalone technology deployments, but from empowering employees across all levels to leverage AI effectively. Companies excelling at embedding AI fluency into their culture report tangible outcomes. In sectors like financial services, firms that lead in AI integration have reported up to 20% productivity improvement. Software engineering teams using AI-powered tools have accelerated code generation by as much as 55%, showcasing the productivity gains possible across organizations. However, significant gaps remain. Many leaders still assume AI expertise resides predominantly with younger generations, such as Gen-Z. With Gen-Z surpassing Boomers in the workforce in 2024, it's easy—but strategically risky—to default to age-based assumptions. Focusing On Capability Over Age While generational differences in technology familiarity are real, the focus on age risks obscuring more critical factors: capability and mindset. Traits like curiosity, adaptability and resilience—often independent of age—are far better predictors of AI readiness. Companies that shift from generational profiling to capability-based segmentation are better positioned to uncover hidden talent, avoid bias and accelerate inclusive AI transformation. Organizations should focus on identifying distinct adoption personas—digital natives, tech adapters and cautious learners—and tailor their approach accordingly. This reframing opens broader access to AI fluency across the workforce and ensures that transformation efforts are both equitable and effective. Cultivating A Capability-First Culture True AI leadership demands fostering a capability-focused rather than age-based culture. Leaders must develop an inclusive AI philosophy, shaping organizational values around continuous learning and adaptability. Clear, actionable guidelines on AI usage, backed by structured learning initiatives, help demystify AI across all capability levels. Companies like Salesforce exemplify how proactive leadership in an AI culture drives sustained innovation and employee engagement. Investment in solutions and hardware that enable intuitive AI interaction can further support a unified employee experience, removing barriers and aligning teams around collective growth. This inclusive leadership approach ensures that AI becomes a tool of empowerment, not division. Future-Proofing Through Continuous Reinvention Forward-looking companies must adopt an agile mindset, preparing not only for today's AI innovations but also anticipating future regulatory, ethical and societal shifts. As AI increasingly permeates decision making processes, companies must proactively embed frameworks for responsible AI usage, transparency and accountability. Continuous reinvention—regularly revisiting and updating AI strategies—will become essential. It helps organizations to swiftly adapt to emerging AI capabilities and societal expectations. This mindset positions enterprises not only to survive technological disruptions but also to lead confidently through ongoing evolution. The generational gap in AI fluency is not insurmountable if leaders refocus their strategic lens. By challenging age-based assumptions, embracing capability-driven transformation and proactively planning for continuous reinvention, companies can turn AI integration into a competitive advantage. In doing so, organizations can ensure readiness not just for today's AI challenges, but for tomorrow's transformative opportunities. Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?
CNN
23 minutes ago
- CNN
Trump will sign an executive order that may make it easier for 401(k)s to offer private equity investments
President Donald Trump on Thursday is expected to sign an executive order that could make it easier for 401(k)s and other workplace retirement plans to offer employees the option of investing some of their savings in alternative investments including private equity, long the domain of institutional and 'accredited' high-net-worth investors. The order calls for the Labor Department and Securities and Exchange Commission to issue guidance to employers about providing access to those alternative investments in their retirement accounts, according to a senior White House official. There has been a steady push in recent months by the private equity and credit industry to gain access to the more than $12 trillion market in defined-contribution workplace savings plans. While there is no law prohibiting plan sponsors from offering private market investments to employees, they have traditionally steered clear of them because they have a fiduciary duty to provide a menu of prudent, reasonably priced investments to plan participants. To date, private equity and private credit options have been riskier, more expensive, less transparent and less liquid than publicly traded stock and bond funds. The president's executive order won't change policy, but it will clarify his position to the rest of the government, Jaret Seiberg, a financial services policy analyst at TD Cowen Washington Research Group, said in a research note. That's one reason why Seiberg doesn't expect immediate changes to result from it. 'It will still require the agencies to craft new rules. That could take into 2026,' he said. And once those new rules are drafted, the employer as plan sponsor of a workplace plan will need to conduct its own due diligence about the new investment offerings. Lisa Gomez, who served as the assistant secretary of labor for employee benefits security at the Labor Department from October 2022 until January of this year, said plan sponsors will have to adhere as closely as ever to their core fiduciary duties to vet the new options coming online to make decisions that are in the best interests of their plan participants and their beneficiaries. 'It's going to be more complicated,' said Gomez, who, prior to working in government spent 30 years in the private sector as an attorney representing plan sponsors. She recommends that sponsors recruit counsel as well as fiduciary advisers who have experience dealing with private equity to help them vet the new options. And they will need to ask for detailed presentations on fees, investment strategy and performance from multiple companies marketing new private market products. Sponsors should probe how a new private investment option may perform relative to a similar product that to date has only been available to institutional and wealthy individual investors, she said. So if a new product is designed to address cost, transparency and liquidity concerns for participants in workplace plans governed by the Employer Retirement Income Security Act (ERISA), 'will that affect the returns?' Gomez asked. What plan sponsors shouldn't do is reject the idea of private equity out of hand because of higher costs or other factors, she said. 'For the right people under the right circumstances, with the right support and education, it could be helpful.' But, Gomez added, it's also important for sponsors to consider what the potential downsides may be. 'If anyone says there are none, I would question that,' she said. 'Be careful to not get caught in the hype. But we also shouldn't be afraid. We should learn.' The argument among those who think retirement savers could benefit from at least indirect exposure to private markets – for example, through a fund of funds like a target date fund or as a portion of a plan's collective investment trust available to those with managed accounts – is that it will provide greater diversification to all markets globally, given how much the private market has grown market relative to the public market in recent years. Hal Ratner, head of research at Morningstar Investment Management LLC, notes that there are roughly 25 times more individual firms in the private equity market than in the publicly traded one. 'Firms are staying private for longer and coming to the IPO market larger and more mature. Therefore, the growth opportunities available to public market investors have become more limited,' Ratner wrote in a recent column. Given all the due diligence fiduciaries will have to do, most workplace plan retirement savers aren't likely to be given the option to invest in a private market option. In the meantime, expect plenty of discussion over how to structure average retail investors' access to private equity and private debt with the same kind of safeguards required under ERISA. Sen. Elizabeth Warren, for instance, has been very vocal about her skepticism and concerns. The top-ranking Democrat on the Senate Banking Committee is seeking more information from Empower, one of the largest recordkeepers that plans to offer its 401(k) clients a private equity option as early as next quarter. More broadly, she is also concerned about the systemic risk the private credit market may pose to the US financial system and the US economy. In mid-July she wrote to Treasury Secretary Scott Bessent, noting that there has been a 145% increase in the volume of bank loans to private debt funds. She requested that the Financial Stability Oversight Council analyze 'the extent to which nonbank financial companies' involvement in the private credit market, and growing entanglements with the core banking system, pose threats to U.S. financial stability.' Those nonbank companies include private equity and private credit funds. She also requested that FSOC work with the Office of Financial Research 'to design and conduct an exploratory stress test of nonbank financial institutions engaged in private credit activities.'
Washington Post
27 minutes ago
- Washington Post
Walker & Dunlop: Q2 Earnings Snapshot
BETHESDA, Md. — BETHESDA, Md. — Walker & Dunlop Inc. (WD) on Thursday reported profit of $34 million in its second quarter. On a per-share basis, the Bethesda, Maryland-based company said it had net income of 99 cents. Earnings, adjusted for one-time gains and costs, came to $1.15 per share. The provider of commercial real estate financial services posted revenue of $319.2 million in the period.
