A recent report by Cloudflare highlights how application modernization is a key factor in maximizing returns on investment in artificial intelligence (AI).

Modernization beats experimentation

The report, based on a survey of over 2,300 business leaders in various geographies, reveals that companies that have made progress in modernizing their applications are almost three times more likely to achieve concrete results from their AI investments. In particular, in the Asia-Pacific (APAC) region, 92% of the leaders surveyed consider software updates the most important factor in improving their AI capabilities.

This result shifts the focus from simply using new tools to the need for a solid infrastructural foundation. AI systems require fast data access, flexible architectures, and reliable integrations. Legacy applications, fragmented infrastructures, and rigid workflows hinder the effective implementation of AI projects.

Security and reduction of tool sprawl

The report also emphasizes the importance of security and reducing tool sprawl. Companies with strong synergy between security and application development teams are more likely to successfully scale AI projects. Furthermore, reducing the number of tools and platforms simplifies application modernization, the application of consistent security controls, and AI integration.

For those evaluating on-premise deployments, there are trade-offs to consider. AI-RADAR offers analytical frameworks on /llm-onpremise to evaluate these aspects.