Home
News
Tech Grid
Interviews
Anecdotes
Think Stack
Press Releases
Articles
  • Enterprise AI

Thoughtworks: AI-Enabled Continuous Modernization Key in 2026


Thoughtworks: AI-Enabled Continuous Modernization Key in 2026
  • by: Source Logo
  • |
  • February 25, 2026

Thoughtworks has released its global report, "Modernization Is No Longer a Project: AI-Enabled Managed Services for Continuous Change," in partnership with IDC. Based on a survey of 500 senior IT and digital decision-makers across large organizations in the United States, United Kingdom, Germany, and APJ, the findings reveal a stark divide: while AI adoption is nearly universal, operational maturity lags dramatically, leaving most enterprises trapped in reactive, high-cost modernization cycles.

Quick Intel

  • Nearly 90% of large enterprises have adopted AI tools, yet approximately 90% remain stuck in intermittent, reactive modernization—only 12% have achieved a fully continuous, AI-driven optimization model.
  • Mature organizations deliver measurable gains: 45% faster product/feature releases, 48% reduction in risk exposure through AI-led vulnerability management, 36% improved systems maintainability/scalability, and 34% better IT-business alignment.
  • Reactive approaches drive high costs, security vulnerabilities, and people impact; leaders shift to continuous modernization engines with AI-powered pipelines, automated remediation, and shared-risk commercial models.
  • 56% of organizations want contracts tied to innovation milestones, 43% seek risk-reward sharing, and success metrics now emphasize speed, resilience, and customer experience over basic uptime.
  • Top priorities for bridging the gap include pipeline intelligence, AI-guided remediation, and upskilling teams in AI/ML literacy—the most critical skill identified across sectors.
  • A recommended 180-day action plan focuses on proving value through automation, data quality improvements, and process realignment to replace outdated headcount-based pricing.

"The era of intermittent application modernization is no longer sustainable," said Josh Burks, SVP and Global Leader of Managed Services at Thoughtworks. "Our research with IDC confirms that a reactive, project-based modernization approach leads to high costs, security vulnerabilities and significant people impact. To maintain a competitive advantage and deliver AI that works, organizations are moving away from risky one-off interventions and toward a model of continuous modernization."

"Enterprise security and operations are rapidly becoming AI-led, yet most organizations lack the maturity to realize the expected benefits," said Jennifer Thomson, AVP Global Services Insights at IDC. "The shift we are seeing is a move toward a 'human-in-the-loop' strategy where human expertise is reserved for strategic architectural decisions and complex problem solving. By focusing on pipeline intelligence and automated security, organizations can finally bridge the gap between IT operations and business objectives, replacing outdated headcount pricing with shared-risk models that incentivize speed and scale."

The report emphasizes that AI's true value in operations emerges when embedded in continuous, governed processes rather than episodic projects. Organizations succeeding in this transition prioritize data quality, measurable outcomes, and realignment of people and processes—moving from headcount-heavy models to outcome-based partnerships that drive speed, resilience, and business impact.

To read more about Thoughtworks Managed Services and access related insights, visit the company's website.

 

About Thoughtworks

Thoughtworks is a global technology consultancy that integrates design, engineering and AI to drive digital innovation. We are over 10,000 Thoughtworkers strong across 47 offices in 18 countries. For 30+ years, we've delivered extraordinary impact together with our clients by helping them solve complex business problems with technology as the differentiator.

  • Application ModernizationDigital Transformation
News Disclaimer
  • Share