Publicis Sapient, in partnership with HFS Research, released a report revealing that Global 2000 enterprises carry an estimated $1.5 to $2 trillion in accumulated technology debt. The study, based on input from over 600 IT and business leaders worldwide, shows that while 30% of IT budgets focus on modernization, only 30% of organizations have updated their core applications. Although 80% of leaders believe AI can improve

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modernization outcomes, just 20% are scaling AI across multiple functions. Many firms remain hesitant or are only beginning to explore AI. Key challenges to AI adoption include talent shortages, integration difficulties with legacy systems, data governance, and regulatory concerns. The report calls for a fundamental shift in delivery models, operating architecture, and mindset to effectively reduce tech debt.

The report also highlights a shift toward AI-led service models and “services-as-software” to drive transformation rather than simply maintaining legacy systems. Nearly three-quarters of enterprise leaders are ready to switch vendors for better AI execution, while disconnects between IT and business leaders pose risks to AI success. The report urges enterprises to move from siloed systems to integrated value chains and to embed governance throughout the AI lifecycle. Phil Fersht, CEO and Chief Analyst of HFS Research, emphasized, "Tech debt isn't just a weight—it's a ticking time bomb that’s threatening the future of global enterprises. AI isn’t the luxury add-on or a shiny new tool we hope will make things better—it’s the only thing that can defuse this crisis.”

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