77% of enterprises prioritize AI, yet 65% rely on legacy infrastructure
A new report sponsored by Tata Communications and Bloomberg Media Studios reveals that while 77% of global enterprises treat AI as a board-level priority, 65% still operate on legacy infrastructure. The study, surveying 501 executives, identifies five key systems—Foundation, Integration, Skills, Governance, and ROI—that determine AI success. Key barriers include skill gaps, integration difficulties, and governance delays, with only 29% of leaders confident their infrastructure can scale.
*this image is generated using AI for illustrative purposes only.
Global enterprises are facing a crisis in scaling artificial intelligence, with 77% of leaders treating it as a board-level priority while 65% continue to operate on legacy infrastructure. This finding comes from the 'Building Durable AI Advantage' report, sponsored by tata communications and produced in partnership with Bloomberg Media Studios. The study highlights that while AI investment is no longer in doubt, foundational tech debt is preventing organizations from realizing its full potential at scale.
The report surveyed 501 senior executives across North America, Europe, and Asia at enterprises with revenues above $500 million. It found that only 29% of leaders believe their infrastructure can scale with evolving business demands. The research identifies five reinforcing systems—Foundation, Integration, Skills, Governance, and ROI—that determine whether AI investment compounds in value or plateaus over time.
Constraints in AI Scaling
The study reveals specific pressure points across the five identified loops. Fewer than half of the enterprises report fully modernised network connectivity, hybrid deployment flexibility, or data architecture. Companies with advanced infrastructure are nearly twice as likely to report high business value from AI compared to those operating on legacy systems.
Key Barriers Identified
| Loop | Key Findings |
|---|---|
| Foundation | 29% say infrastructure can scale with demands. |
| Integration | 28% cite difficulty integrating AI with legacy systems; 38% report delays in approval cycles. |
| Skills | 30% cite skill gaps as a primary barrier; this rises to 45% for enterprises with revenues above $5 billion. |
| Governance | 42% identify security and compliance reviews as the largest source of approval delays. |
| ROI | 90% see some value from modernisation, but over 60% have not reached optimal outcomes. |
Sumeet Walia, President & Chief Revenue Officer of Tata Communications, stated that the real differentiator is no longer AI itself but the infrastructure and integration that enable value delivery at scale. He emphasized that AI is a tightly coupled ecosystem of compute, power, connectivity, and platforms, which are converging into a unified infrastructure. The fieldwork for the report was conducted between December 2025 and January 2026 across markets including the US, UK, Germany, France, Singapore, Hong Kong, China, India, and the Benelux/Nordic regions.
Historical Stock Returns for Tata Communications
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.66% | +0.31% | +25.68% | +6.82% | +17.23% | +72.89% |
How will the urgency to address technical debt influence IT budget allocations over the next fiscal year?
What specific modernization strategies will enterprises prioritize to bridge the gap between legacy systems and AI scalability?
How will the widening AI skills gap in large enterprises impact the competitive landscape of the talent market?
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