logo
Technical Debt Stifling Path to AI Adoption for Global Enterprises, Says Research

Technical Debt Stifling Path to AI Adoption for Global Enterprises, Says Research

Business Wire7 days ago

LAS VEGAS--(BUSINESS WIRE)--Technical debt and an over-reliance on outdated legacy systems and applications is blocking enterprise adoption of more innovative technologies like artificial intelligence (AI), according to new research from Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™. The study, conducted with research firm Savanta, was unveiled at PegaWorld®, the company's annual conference in Las Vegas. It surveyed more than 500 IT decision makers across enterprises worldwide on the challenges caused by technical debt and the progress in modernizing legacy technology.
The study found that two in three (68%) respondents say legacy systems and applications are preventing their organization from fully embracing more modern technologies. An overwhelming majority (88%) are also concerned about how their technical debt impacts their ability to keep pace with more agile, innovative competitors – with one in three (29%) indicating either 'clear' or 'significant' concern. More than half (57%) even acknowledge their reliance on legacy systems 'likely' or 'highly likely' causes customers to defect due to the resulting poor experiences.
Other findings from the research include:
Legacy dependency: Almost half (48%) say they can't stop supporting their legacy applications – despite wanting to – because the systems are still business critical. Almost half (47%) say their oldest legacy application is between 11-20 years old, while more than one in ten (16%) run apps between 21-30 years old.
Legacy Ineffectiveness: Two thirds (68%) of respondents say legacy systems are preventing their organization from operating as effectively as possible, citing time spent on maintenance (44%), the siloed nature of disconnected systems, and the cost of maintenance (both 37%) as the leading contributing factors. Just 7% feel legacy applications caused no problems for their business whatsoever.
The customer does not always come first: Three quarters (74%) of respondents agree their business prioritizes investments that improve profitability instead of ways to improve customer experience, such as technologies to help modernize legacy applications. This echoes research conducted by Pega earlier this year among consumers, 69% of whom felt businesses were prioritizing profits over positive customer experiences in their IT investments. It could also help explain why one in three (32%) say the average resolution time to customer queries has increased between 26-50% in the last 12 months – a direct result of staff running multiple or outdated legacy applications.
Quotes & Commentary
'This study highlights how easy it can be for enterprises to get dragged down by outdated systems that are unwieldy to use and resource-intensive to maintain – perpetuating an organizational culture of waste,' said Don Schuerman, chief technology officer, Pega. 'While the bottom-line cost to businesses is significant, the real cost of technical debt is its impact on the experiences that today's customers both demand and deserve. It's time for businesses to change their mindset, harness the power of generative AI through innovations like Pega Blueprint™, to enact fast, efficient legacy transformation, and free themselves from the vicious cycle of technical debt…before they lose their customers for good.'
Notes
Pega surveyed more than 500 IT decision makers worldwide on their legacy transformation projects, how they work, and the challenges and opportunities they present. The results included responses from North America, the United Kingdom, France, Australia, and Germany.
Methodology
For all respondents, Pega defined 'technical debt' and 'legacy systems' as outdated hardware, software, or technology platforms that remain in use due to their critical role in business operations. This is despite challenges such as limited scalability, security vulnerabilities, high maintenance costs, and incompatibility with modern technologies. Technical debt is the implied, often intangible, cost of additional work, or strain using them places upon the business.
Additional Resources
About Pegasystems
Pega is The Enterprise Transformation Company that helps organizations Build for Change® with enterprise AI decisioning and workflow automation. Many of the world's most influential businesses rely on our platform to solve their most pressing challenges, from personalizing engagement to automating service to streamlining operations. Since 1983, we've built our scalable and flexible architecture to help enterprises meet today's customer demands while continuously transforming for tomorrow. For more information on Pega (NASDAQ: PEGA), visit www.pega.com
All trademarks are the property of their respective owners.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Rio Tinto seeks innovative collaborators at London Tech Week
Rio Tinto seeks innovative collaborators at London Tech Week

Yahoo

time32 minutes ago

  • Yahoo

Rio Tinto seeks innovative collaborators at London Tech Week

LONDON, June 09, 2025--(BUSINESS WIRE)--Rio Tinto is taking its innovation strategy directly to entrepreneurs, researchers and innovators at London Tech Week as it works to accelerate the breakthroughs needed to sustainably deliver the materials the world needs. The only mining company at London Tech Week, Rio Tinto will lead discussions on how to meet the soaring global demand for critical minerals, deliver materials at scale more sustainably, and harness innovation to deliver the technologies of tomorrow, from AI to electrification to renewables. Rio Tinto Chief Innovation Officer Dan Walker said: "Innovation is in our DNA. For over 150 years, Rio Tinto has operated at the intersection of mining and technology, and there has never been a time when innovation is needed more. "As the world faces increasingly complex challenges, from climate change and urbanisation to the energy transition and electrification, meeting the world's needs requires more materials, delivered faster, more sustainably, and with a lighter footprint at every step. "These are deeply complex issues that no organisation can solve alone. We want to find the very best innovators and entrepreneurs to join our global network of startups, universities, tech leaders and governments to help turn bold ideas into real-world solutions." Rio Tinto's expanding innovation ecosystem includes its Accelerator Program, run in partnership with early-stage investor Founders Factory, and its Ventures Fund, which support high-potential startups mining and sustainability. Last year, Rio Tinto also invested $150 million to launch the Rio Tinto Centre for Future Materials, in collaboration with five world-leading universities, to advance transformational research to accelerate progress towards net zero. Led by Imperial College London, the academic partners include The University of British Columbia, Vancouver; The University of California, Berkeley; The University of the Witwatersrand, Johannesburg; and The Australian National University, Canberra. Rio Tinto speaking sessions at London Tech Week 2025: Monday 9 June: "Unlocking tomorrow's tech: powering innovation that ensures the sustainable supply of the materials that matter" — Rio Tinto CEO Jakob Stausholm in conversation with Dan Walker, Chief Innovation Officer (Main Stage) Wednesday 11 June: "Creating the Future from Campus: Why Are University Spinouts So Important for Innovation?" — Panel featuring Marie-Pierre Paquin, Rio Tinto Head of Science & Partnerships (Founders Stage) Wednesday 11 June: "Why the future depends on blurring the lines between Mining and ClimateTech" — Panel moderated by Pekka Santasalo, Rio Tinto Head of Growth & Ventures, with founders from three startups backed by Rio Tinto (Impact Stage) View source version on Contacts Please direct all enquiries to Media Relations, United Kingdom Matthew Klar M +44 7796 630 637David Outhwaite M +44 7787 597 493 Media Relations, Australia Matt Chambers M +61 433 525 739Michelle Lee M +61 458 609 322Rachel Pupazzoni M +61 438 875 469 Media Relations, Canada Simon Letendre M +1 514 796 4973Malika Cherry M +1 418 592 7293Vanessa Damha M +1 514 715 2152 Media Relations, US Jesse Riseborough M +1 202 394 9480 Rio Tinto plc 6 St James's SquareLondon SW1Y 4ADUnited KingdomT +44 20 7781 2000Registered in EnglandNo. 719885 Rio Tinto Limited Level 43, 120 Collins StreetMelbourne 3000AustraliaT +61 3 9283 3333Registered in AustraliaABN 96 004 458 404 Category: General

Rio Tinto seeks innovative collaborators at London Tech Week
Rio Tinto seeks innovative collaborators at London Tech Week

Business Wire

time36 minutes ago

  • Business Wire

Rio Tinto seeks innovative collaborators at London Tech Week

LONDON--(BUSINESS WIRE)--Rio Tinto is taking its innovation strategy directly to entrepreneurs, researchers and innovators at London Tech Week as it works to accelerate the breakthroughs needed to sustainably deliver the materials the world needs. The only mining company at London Tech Week, Rio Tinto will lead discussions on how to meet the soaring global demand for critical minerals, deliver materials at scale more sustainably, and harness innovation to deliver the technologies of tomorrow, from AI to electrification to renewables. Rio Tinto Chief Innovation Officer Dan Walker said: 'Innovation is in our DNA. For over 150 years, Rio Tinto has operated at the intersection of mining and technology, and there has never been a time when innovation is needed more. 'As the world faces increasingly complex challenges, from climate change and urbanisation to the energy transition and electrification, meeting the world's needs requires more materials, delivered faster, more sustainably, and with a lighter footprint at every step. 'These are deeply complex issues that no organisation can solve alone. We want to find the very best innovators and entrepreneurs to join our global network of startups, universities, tech leaders and governments to help turn bold ideas into real-world solutions.' Rio Tinto's expanding innovation ecosystem includes its Accelerator Program, run in partnership with early-stage investor Founders Factory, and its Ventures Fund, which support high-potential startups mining and sustainability. Last year, Rio Tinto also invested $150 million to launch the Rio Tinto Centre for Future Materials, in collaboration with five world-leading universities, to advance transformational research to accelerate progress towards net zero. Led by Imperial College London, the academic partners include The University of British Columbia, Vancouver; The University of California, Berkeley; The University of the Witwatersrand, Johannesburg; and The Australian National University, Canberra. Rio Tinto speaking sessions at London Tech Week 2025: Monday 9 June:"Unlocking tomorrow's tech: powering innovation that ensures the sustainable supply of the materials that matter' — Rio Tinto CEO Jakob Stausholm in conversation with Dan Walker, Chief Innovation Officer (Main Stage) Wednesday 11 June:"Creating the Future from Campus: Why Are University Spinouts So Important for Innovation?' — Panel featuring Marie-Pierre Paquin, Rio Tinto Head of Science & Partnerships (Founders Stage) Wednesday 11 June: "Why the future depends on blurring the lines between Mining and ClimateTech" — Panel moderated by Pekka Santasalo, Rio Tinto Head of Growth & Ventures, with founders from three startups backed by Rio Tinto (Impact Stage)

High Growth Tech Stocks To Watch In Europe June 2025
High Growth Tech Stocks To Watch In Europe June 2025

Yahoo

time3 hours ago

  • Yahoo

High Growth Tech Stocks To Watch In Europe June 2025

As the European markets experience a boost, with the STOXX Europe 600 Index climbing by 0.90% amid easing inflation and supportive monetary policy from the European Central Bank, investors are increasingly focusing on high-growth sectors such as technology. In this environment, identifying promising tech stocks involves looking for companies that can leverage favorable economic conditions and technological advancements to drive substantial growth. Name Revenue Growth Earnings Growth Growth Rating Intellego Technologies 30.80% 45.66% ★★★★★★ Archos 21.07% 36.58% ★★★★★★ KebNi 21.51% 66.96% ★★★★★★ Pharma Mar 29.61% 44.92% ★★★★★★ Bonesupport Holding 29.14% 56.14% ★★★★★★ argenx 21.50% 26.61% ★★★★★★ Skolon 31.51% 99.52% ★★★★★★ Xbrane Biopharma 24.95% 56.77% ★★★★★★ Diamyd Medical 86.29% 93.04% ★★★★★★ Elliptic Laboratories 36.33% 78.99% ★★★★★★ Click here to see the full list of 226 stocks from our European High Growth Tech and AI Stocks screener. Let's explore several standout options from the results in the screener. Simply Wall St Growth Rating: ★★★★★★ Overview: argenx SE is a commercial-stage biopharma company focused on developing therapies for autoimmune diseases across several countries including the United States, Japan, China, and the Netherlands, with a market cap of €31.52 billion. Operations: argenx focuses on developing therapies for autoimmune diseases, generating revenue primarily from its biotechnology segment, which reported $2.64 billion. The company's operations span multiple countries, including the United States, Japan, China, and the Netherlands. argenx SE has demonstrated remarkable growth with a surge in revenue to $807.37 million, doubling from the previous year's $412.51 million, alongside transitioning from a net loss to a substantial net income of $169.47 million. This financial turnaround is underscored by robust R&D commitments, crucial for sustaining innovation and competitiveness in the biotech landscape. The firm's recent CHMP nod for VYVGART® in CIDP treatment further highlights its strategic focus on expanding therapeutic applications, promising continued relevance and impact within the healthcare sector. Click here to discover the nuances of argenx with our detailed analytical health report. Understand argenx's track record by examining our Past report. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Believe S.A. is a company that offers digital music services to independent labels and local artists across various regions including France, Germany, the rest of Europe, the Americas, Asia, Oceania, and the Pacific with a market cap of approximately €1.72 billion. Operations: The company's revenue primarily comes from Premium Solutions, generating €924.24 million, while Automated Solutions contribute €64.59 million. Believe, a European tech entity, is navigating its path towards profitability with expected earnings growth of 96.9% annually. Despite current unprofitability, its revenue growth outpaces the French market's average at 13.4% per year compared to 5%. This growth trajectory is supported by strategic moves such as the proposed acquisition by TCMI Inc., EQT X, and Denis Ladegaillerie for a €57.9 million stake, enhancing financial stability and market presence. Moreover, Believe's commitment to R&D aligns with industry demands for continuous innovation, ensuring it remains competitive in the dynamic tech landscape. Get an in-depth perspective on Believe's performance by reading our health report here. Examine Believe's past performance report to understand how it has performed in the past. Simply Wall St Growth Rating: ★★★★★☆ Overview: Comet Holding AG, along with its subsidiaries, delivers X-ray and radio frequency (RF) power technology solutions globally across Europe, North America, and Asia, with a market capitalization of CHF1.79 billion. Operations: The company generates revenue through three main segments: X-Ray Systems (CHF115.89 million), Industrial X-Ray Modules (CHF94.57 million), and Plasma Control Technologies (CHF247.39 million). Comet Holding AG, a Swiss tech firm, is making notable strides with an earnings growth of 37.3% annually, significantly outpacing the local market's average of 10.7%. This robust performance is further underscored by its revenue increase of 12.2% per year, which also surpasses the Swiss market growth rate of 4.2%. Notably, Comet's commitment to innovation is evident in its R&D spending, crucial for maintaining technological leadership in a competitive sector. Recent corporate actions include electing Benjamin Loh as Chairman and approving a dividend increase to CHF 1.50 per share, signaling strong governance and shareholder confidence amidst a promising financial trajectory marked by first-quarter sales surging by 37.5% year-over-year to CHF 111.2 million. Take a closer look at Comet Holding's potential here in our health report. Assess Comet Holding's past performance with our detailed historical performance reports. Dive into all 226 of the European High Growth Tech and AI Stocks we have identified here. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ENXTBR:ARGX ENXTPA:BLV and SWX:COTN. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store