Capgemini CEO: AI readiness requires multi-year IT modernization

"Every organization today wants to become agentic," Ezzat said, referring to AI systems capable of performing multi-step tasks. "But before they can become agentic, they must become AI-ready, and most are not." Capgemini anticipates a "multi-year modernization supercycle" as companies upgrade the foundational elements required to support AI across their operations, including data platforms, applications, and core infrastructure.

He further noted that many businesses are hampered by years of technical debt, resulting in data scattered across incompatible systems. This fragmentation makes it difficult for AI tools to access reliable information or execute tasks effectively across an organization. While generative AI can produce outputs, it struggles with consistent business process execution when underlying systems are 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 stated. He also observed that while companies remain willing to invest in AI, spending is becoming more focused, with clients increasingly prioritizing large-scale transformation programs over isolated experiments and pilot projects.