Are you investing wisely in AI, or feel like you’re falling behind?

If you’re a CIO or CTO wondering how to keep your tech stack AI and future-ready without overextending budgets or overhauling your entire infrastructure, you’re not alone. The AI megatrend is forcing every technology leader to answer one pressing question: “Are we investing wisely in AI, or are we falling behind?” 

The truth is that AI is no longer emerging, it's here, accelerating, and fundamentally transforming how we build, manage, and scale software. And if your organisation still treats AI as a side experiment, you’re already behind. 

Let’s break down what’s happening, what’s coming next, and how NashTech advises leaders to take action. 

What’s happening already?  

For new custom-built software… 

We are finding that, already, AI is transforming how software development companies (like NashTech) are building custom software. Our experience of working with tools such as Generative AI (GenAI) is already delivering ~25% improvements in coding productivity, which means faster releases, smaller teams delivering more, and more for your budget.  

For legacy systems… 

Once known for being the thorn in every CIO’s roadmap, legacy systems are slowly beginning to benefit from the GenAI treatment. GenAI now enables: 

• Automated code analysis for poorly documented systems 

• Refactoring support for legacy code bases 

• Simpler pathways for migration or modular modernisation 

This is critical, as ~30% of IT budgets and ~20% of engineering resources are typically spent managing technical debt. So, whilst there’s no question, GenAI is benefitting new custom software, there is an opportunity for it to improve the development of legacy systems as it improves and matures, helping enterprises finally tackle the modernisation backlog. 

What about offshore/outsourced services? 

Outsourcing is evolving. AI, through the capabilities mentioned above, is opening up new ways to create value, particularly through partnerships, with: 

• Test automation 

• Requirement gathering  

• Coding / automated unit testing  

• Code reviews 

• Sprint planning and delivery velocity tracking 

• Administrative support (i.e. meeting minutes)  

This hybrid model enhances quality, reduces cycle times, and delivers measurable ROI, without requiring larger teams, because, despite the increased demand for custom software, GenAI makes teams more efficient. So as demand grows, productivity gains mean you won’t necessarily need to increase your headcount.  

What’s next?  

AI integration, adoption and ROI. But here’s the reality check: adoption isn’t easy 

Despite optimism, real-world AI adoption faces friction. In 2024, Gartner found that 39% of CIOs still hadn’t implemented AI in their organisations. The gap is largely due to unclear ROI, lack of use case maturity, and limited enterprise readiness. 

So how what’s your next action? 

NashTech’s advice to turn AI from an aspiration into an advantage, is to firstly, prioritise effectiveness over cost-cutting. AI’s greatest power lies in amplifying human capability, not just replacing headcount. Look at the three core pillars of: 

• Strategic integration – can you identify where AI can genuinely transform your business outcomes rather than automating for automation's sake? 

• Data foundation – governed data is non-negotiable, can you ensure your information architecture can support AI initiatives? Is it clean and accessible? 
• Cultural readiness – are you able to prepare your teams for AI-augmented workflows? Can you invest in skills development? Can you establish clear governance frameworks?  

According to Gartner (2024), AI-related services will account for £443 billion, or 27%, of all IT service spend by 2027. And Bain & Company reports early GenAI adopters are seeing initiatives that could impact EBITDA by up to 20%. That’s no longer theory. Its strategy aimed at driving value which can be evidenced in the bottom line.  

If you’re unsure about the answers to the points above, we can help, speak with us today https://www.nashtechglobal.com/contact-us/