Economy July 30, 2026 03:36 AM

Capgemini Says Widespread AI Use Will Trigger Years of IT Modernisation

CEO Aiman Ezzat warns legacy systems and fragmented data must be addressed before organisations can scale AI

By Leila Farooq
Share
Twitter Reddit Facebook LinkedIn

Capgemini's CEO Aiman Ezzat said firms aiming to roll out AI at scale face a prerequisite: modernising long-standing technology stacks. The company forecasts a multi-year investment cycle in data, software and infrastructure as businesses confront technical debt and fragmented systems, and it has lifted its 2026 revenue growth target after stronger bookings.

Capgemini Says Widespread AI Use Will Trigger Years of IT Modernisation
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • Companies aiming to scale AI must modernise longstanding technology systems, driving a multi-year investment cycle in data, software and infrastructure - impacts enterprise IT, software and infrastructure services.
  • Capgemini raised its 2026 revenue growth target after stronger bookings, reflecting increased client demand for modernization and transformation programmes - relevant to consulting and IT services markets.
  • Spending on AI is shifting toward large-scale transformation programmes rather than isolated pilots, indicating more targeted and substantial vendor engagements across technology and cloud sectors.

Capgemini's chief executive, Aiman Ezzat, told analysts that companies seeking to deploy artificial intelligence at scale will first need to overhaul technology systems that in many cases have accreted over decades. He described the necessary work as a multi-year cycle of investment in data, software and core infrastructure.

The comments followed Capgemini raising its 2026 revenue growth target, a move the company attributed to stronger bookings. Ezzat argued the main barrier to broader AI adoption is not the availability of models but the state of legacy systems, dispersed data and the complexity of technology estates that organisations have built up over many years.

"Every organization today wants to become agentic," Ezzat said, using the term to refer to AI systems configured to carry out multi-step tasks. "But before they can become agentic, they must become AI-ready, and most are not."

Capgemini expects a "multi-year modernization supercycle" as companies upgrade the foundations required to support AI across their operations. Upgrades will include investments in data platforms, enterprise applications and underlying infrastructure designed to enable AI tools to work across business processes.

Ezzat pointed to accumulated technical debt as a constraint for many businesses. He said years of fragmented and incompatible systems have left data scattered, complicating the ability of AI tools to access reliable information or to execute tasks consistently across an organisation.

He noted that while generative AI applications can generate responses, they often falter when asked to perform consistent business processes if the underlying systems remain disconnected. "AI is not only creating demand for new business capability; it’s also accelerating the modernization of the technology foundation on which those capabilities depend," Ezzat added.

Despite those challenges, Ezzat said companies remain willing to put money into AI initiatives. However, spending patterns are shifting: clients are prioritising comprehensive, large-scale transformation programmes rather than isolated experiments or short pilot projects.

The company’s revised 2026 revenue growth target and stronger bookings underline the commercial implications Capgemini sees in this push toward modernising IT estates to support AI at scale.

Risks

  • Persistent technical debt and fragmented systems may delay or limit the ability of AI tools to perform business processes consistently - risk concentrated in enterprise IT and operations.
  • Disconnected data across incompatible systems could impede reliable information access for AI, reducing effectiveness and slowing adoption - impact on software vendors and data platform providers.
  • Despite willingness to invest, the shift toward targeted large-scale programmes may reduce funding for smaller experiments and could alter demand patterns for consulting and cloud services.

More from Economy

Euro zone posts slightly stronger-than-expected Q2 growth as AI investment and government outlays lift activity Jul 30, 2026 Fed Holds Rates at 3.50%-3.75% as Officials Split Over Next Move Jul 30, 2026 Regional inflation readings climb in four German states in July, pointing to possible national uptick Jul 30, 2026 China’s Leaders Promise Measured Steps to Lift Growth After Slower Q2 Jul 30, 2026 Fed Holds Rates as Tech Earnings and Energy Volatility Shape Market Tone Jul 30, 2026