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U.S. Enterprises Embed AI Across Application Services: ISG Report


U.S. Enterprises Embed AI Across Application Services: ISG Report
  • by: Business Wire
  • |
  • September 25, 2026

U.S. enterprises are embedding AI throughout application lifecycles while tightening security, traceability and accountability, according to a new research report published today by Information Services Group, a global AI-centered technology research and advisory firm. AI is shifting U.S. application services from delivery capacity to trusted software intelligence.

According to the 2026 ISG Provider Lens AI-Driven ADM Services report for the U.S., buyers will judge progress by whether each AI-assisted change can be explained, reviewed and linked to business results, with measurable gains required in productivity, service quality and release confidence.

Quick Intel

  • ISG 2026 Provider Lens AI-Driven ADM Services report for U.S. finds enterprises embedding AI across development, testing and operations.
  • Shift from delivery capacity to trusted software intelligence, with focus on explainability, traceability and business linkage.
  • Application modernization remains major priority using AI for discovery, code understanding, reverse engineering and cloud migration planning.
  • Quality engineering evolving from test factory to strategic risk-control function with GenAI test design and AI model validation.
  • Report evaluates 59 providers across six quadrants, names 12 Leaders in three quadrants each including Accenture and Infosys.
  • Altimetrik named global ISG CX Star Performer for 2026 with highest satisfaction in Voice of the Customer survey.

AI-Driven ADM Shifts to Governed Engineering and Trusted Intelligence

The 2026 ISG Provider Lens AI-Driven ADM Services report for the U.S. finds that AI is reshaping software engineering. It now spans development, testing and operations under coordinated controls. Buyers require measurable gains in productivity, service quality and release confidence together with human oversight and production safeguards.

“AI is shifting U.S. application services from delivery capacity to trusted software intelligence,” said Shafqat Azim, partner, ISG. “Buyers will judge progress by whether each AI-assisted change can be explained, reviewed and linked to business results.”

The report also explores other trends in U.S. ADM, including the growing use of platform engineering and agent-assisted development.

Application Modernization and Operational Resilience Priorities

Application modernization remains a major priority in U.S. organizations as aging software and fragmented architectures impose high maintenance demands. Enterprises are using AI for application discovery, code understanding, reverse engineering and detailed cloud migration planning. They are simultaneously enhancing application support and testing with the help of AI to prevent disruptions within complex environments supporting daily operations.

Strict requirements for operational resilience remain a high priority, increasing demand for observability, AI for IT operations, IT service management integration and site reliability engineering across application portfolios. Enterprises use intelligent ticket handling, assisted remediation and continuous optimization to improve application stability, responsiveness and business continuity.

Quality Engineering Evolution to Risk Control Function

Quality engineering is evolving from a downstream test factory to a strategic risk-control function as enterprises adapt to cloud-native architectures and AI-generated code. To accelerate application delivery, organizations seek generative AI-based test design, defect prediction, test-data generation and continuous validation throughout development and application operations.

Quality control requirements extend to AI itself, with organizations implementing AI model validation, bias testing, explainability, hallucination controls and security checks for intelligent applications before release, ISG says.

“Providers must unite AI, quality and continuity,” said Maharshi Pandya, ISG senior lead analyst and lead author of the report. “Enterprises seek partners that can monitor risks, prove applications are ready for production and measure benefits throughout the software lifecycle with transparent evidence.”

The report evaluates 59 providers across six quadrants: Application Development Outsourcing, Application Development Projects, Application Managed Services — GSIs, Application Managed Services — SIs, Application Quality Assurance and Continuous Testing Specialists.

The report names Accenture, Capgemini, Coforge, Cognizant, Deloitte, HCLTech, Hexaware, IBM, Infosys, TCS, UST and Wipro as Leaders in three quadrants each. It names Apexon, Hitachi Digital Services, HTC Global Services, Infinite Computer Solutions and Tech Mahindra as Leaders in two quadrants each. Atos, Birlasoft, Brillio, Innova Solutions, NTT DATA, Persistent Systems and Sutherland are named as Leaders in one quadrant each.

In addition, DXC Technology is recognized as a Rising Star in two quadrants. Innova Solutions, LTM, Qualitest, Sutherland, TestingXperts and Unisys are recognized as Rising Stars in one quadrant each.

In the area of customer experience, Altimetrik is named the global ISG CX Star Performer for 2026 among AI driven ADM Services providers.

 

About ISG

ISG is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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