AI-driven legacy IT modernization

If you’re still relying on legacy systems to run core operations, it’s not just inefficient, it’s risky. These systems are often built on code that’s decades old, with logic that no longer reflects how your business works today. AI gives you the ability to modernize faster, and smarter. Tools like Thoughtworks’ CodeConcise do more than just translate old code into modern languages. They analyze the structure, surface buried business rules, highlight outdated logic, and recommend updates in alignment with current regulatory or internal policies.

For government agencies and large enterprises, this is a big deal. As Noel Hara, VP and CTO for the Public Sector at NTT DATA, puts it, many systems are still running on monolithic architectures. When organizations try to modernize, they bring old problems into new environments. AI helps stop that from happening. You’re not just refactoring code, you’re refining the logic that drives your institutions.

The benefits aren’t theoretical. Thoughtworks’ internal deployment of CodeConcise has already reduced module transformation time by four weeks. In a large-scale mainframe project, it saved 240 full-time equivalent (FTE) years. That’s not hype, it’s real, quantifiable impact.

AI-powered modernization isn’t another upgrade cycle. It’s a route to operational clarity and agility. Eliminate technical debt while aligning the backend with today’s organizational demands. That’s forward motion.

Improved developer productivity and burnout mitigation

AI isn’t here to replace developers. It’s here to remove the pointless friction in their day-to-day workflows, things like switching context ten times an hour, writing boilerplate code, chasing down undocumented changes, or managing dozens of tests manually. With platforms like Tabnine and JetBrains AI, engineering teams are now working with smarter tools that review code in real time, summarize documentation, and handle routine tasks without slowing anyone down.

Cycode’s Field CTO, Jimmy Xu, describes AI as the “means” to create the so-called 10x developer. He’s not overselling it. When you cut the noise, repetitive overhead, inefficient handoffs, endless Slack pings, you give engineers room to innovate. And that’s what drives product progress.

Finastra took an interesting approach. They didn’t start by changing tools, they started by listening. Their leadership used AI to run pulse surveys to track developer well-being. What they uncovered was unexpected: engineers were logging, on average, six extra hours per week, under the radar. The pressure from endless product updates and fragmented schedules was burning them out.

Once they had the data, Finastra made real changes, restructuring schedules, introducing focus hours, and cutting down non-essential meetings. AI helped them see the problem clearly and move fast to fix it. Leaders need this kind of visibility if they want to keep developer morale strong and product delivery on track.

Saving time and increasing productivity is important. But protecting the mental bandwidth of your engineering team unlocks far more in the long run. AI can give you both. Use it.

Optimized product scope management through AI

Most software teams lose time not through coding inefficiencies, but through poorly managed scope. Engineers spend the majority of their workweek on activities like shaping user stories, handling QA cycles, and adjusting to shifting product requirements. Without tight oversight, scope starts to grow in unpredictable ways. That’s where AI now plays a direct role in improving engineering output and reducing noise around product delivery.

Jeff Watkins, CTO at CreateFuture, has seen this up close. His team uses AI to automate meeting summaries, track changes across sprints, and flag scope deviations early. The result? A 30% reduction in time spent managing epics, stories, and sprint artifacts. They reclaimed four to eight hours per sprint and reinvested that time back into real development work. That’s a real shift in operational efficiency.

It goes further. AI helps product teams do things they didn’t have the bandwidth for before, like running predictive analysis across past projects to detect features that were consistently under-scoped or generating sprint reports with zero manual effort. The system can track how the backlog evolves in real time and identify disconnects between what was planned and what’s actually being built.

For executives, this is where the business value becomes clear. When you eliminate scope creep before it creates delivery risk, your teams spend less time correcting course and more time building tangible outcomes. AI isn’t just streamlining the product development process, it’s creating earlier visibility into risk and helping teams stay in sync with organizational goals. That’s not automation for its own sake. It’s strategic alignment in action.

AI-enabled self-healing IT systems

System downtime is expensive. When large organizations go offline, the financial hit can reach $9,000 per minute. Add in data loss, regulatory fines, reputational costs, suddenly, you’re looking at something that can exceed $5 million per incident. Yet, most IT monitoring still waits for something to break before reacting. That’s not scalable.

AI changes the operating model. Instead of just alerting teams when things go wrong, AI systems like the ones at Chamomile.ai and Cycode are designed to anticipate issues before they escalate. These tools read massive volumes of log data using large language models (LLMs) to detect subtle patterns, differences, and anomalies that traditional systems miss. It’s not about scanning for known errors, it’s about recognizing new or evolving ones in real time.

Tirath Ramdas, CEO at Chamomile.ai, is clear: true root cause analysis means being able to correlate distributed log data, apply intelligent matching, and flag deviations quickly. When applied well, this approach reduces incident resolution time and cuts down on manual, pressure-heavy diagnostics. Jimmy Xu from Cycode adds that AI can go even further, quantifying risk scores and even suggesting automated code fixes when system metrics breach thresholds.

This is where self-healing comes into play. AI doesn’t just catch the problem, it can act. If CPU usage spikes abnormally or network latency drifts beyond set limits, the system can trigger remediation protocols automatically. It gives IT teams room to scale support across platforms without constant firefighting.

For C-level leaders, the logic is straightforward. You reduce risk, avoid revenue loss, and increase system reliability. AI removes inefficiencies and protects uptime. It’s not about chasing innovation for attention, it’s about building an infrastructure that keeps your business running, no matter how fast you scale.

Organizational culture as the catalyst for successful AI integration

The strength of AI doesn’t come from the toolset alone, it comes from how your teams use it. Most organizations already have access to powerful AI tools embedded in platforms like Microsoft Copilot 365 or Google Gemini Advanced. The real differentiator isn’t whether you have access, it’s whether your organization knows how to extract value from it.

Jeff Watkins, CTO at CreateFuture, makes the case clearly. He emphasizes that meaningful gains are being made with tools most teams already have, because the focus is on enabling people, not chasing the next shiny platform. In his view, adoption happens faster when leaders spend time coaching teams, setting clear use cases, and allowing space to explore real business problems with AI. The results compound quickly when people know what the tools can actually do.

The cultural shift this requires isn’t complicated, but it is important. Teams need permission to learn, experiment, and iterate without immediate pressure to deliver ROI. One example: running dedicated AI exploration days inside engineering orgs, where people are encouraged to test AI capabilities on ambiguous problems. This builds fluency and confidence. Over time, your teams stop asking what’s possible, they start executing it.

For executives, this is the lever that drives long-term performance. A tech investment only delivers value when the culture is equipped to support it. That means prioritizing training, rewarding experimentation, and aligning teams around outcomes, not just tools. If your organization can do that, the return will follow. AI isn’t just about faster processes, it’s about smarter people operating in an environment that rewards clarity, speed, and execution. That’s how lasting results are built.

Main highlights

  • Modernizing legacy systems with AI drives speed and accuracy: Leaders should implement AI tools to extract and update business logic during modernization efforts, cutting transformation timelines and preventing outdated code from carrying over.
  • AI boosts developer productivity and reduces burnout risk: Executives should invest in AI-led development platforms and workload analytics to streamline code review, reduce unnecessary cognitive load, and proactively manage engineering team well-being.
  • Smart product scope management starts with AI insight: Use AI to monitor scope changes, automate sprint documentation, and detect delivery risks early, freeing valuable developer hours and keeping product delivery tightly aligned with business goals.
  • Self-healing IT systems reduce downtime and protect scale: Organizations should deploy AI-powered monitoring and remediation tools to prevent failures before they escalate, lowering costs and enhancing system reliability at scale.
  • Culture, not tools, determines AI success: Leaders must prioritize team training, experimentation, and adoption readiness if they want to get true ROI from AI, most results come from how teams apply everyday AI tools, not from adopting the latest platform.

Alexander Procter

June 6, 2025

8 Min