A recent report from Ensono highlights that many businesses are choosing to upgrade their existing hardware instead of replacing it, even as they increase their use of artificial intelligence (AI). The findings reveal that 57% of UK organizations have decided to continue using older, or legacy, systems rather than invest in new technology. This trend is happening even though nearly half of UK businesses are expanding their use of AI. In fact, over three quarters of UK businesses have gone over their budgets for modernizing their IT systems, and more than two-thirds have either paused or given up on the modernization process. The report indicates that IT modernization is increasingly being accomplished through upgrades to existing systems rather than replacing them entirely. Around 52% of businesses, including 57% in the UK and 48% in the US, are taking this approach. However, this reliance on older technology may not be due to careful planning or budgeting. In both the US and the UK, 61% of businesses have had to pause, reduce, delay, or completely stop their IT modernization efforts in the past two years. The report also points out that 71% of IT modernization projects have gone over their budgets. Major challenges include workflow difficulties (33%) and limitations in current infrastructure (28%), which are hindering the return on investment (ROI) from AI spending. The number of decision-makers who believe AI is speeding up modernization has grown from 39% last year to 54% this year. Budget constraints are pushing many organizations to rely on older technology while trying to keep pace with AI advancements. Brian Klingbeil, Chief Strategy Officer at Ensono, noted that AI is opening up new possibilities for modernization. He explained that legacy systems, such as mainframes, are proving to be powerful, reliable, and efficient computing resources that can now be enhanced and made more flexible with the help of AI. These systems hold decades of data and business logic that are crucial to many operations. Klingbeil emphasized that the most successful organizations will be those that can clearly identify which parts of their systems need replacing and which can be improved, while embracing modernization techniques that were unavailable just 18 months ago.