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New report from Tata Communications and Bloomberg Media Studios reveals that enterprises aren't struggling to adopt AI — they are struggling to scale it due to foundational tech debt.

AI has become a universal corporate mandate, but a new global study from Tata Communications and Bloomberg Media Studios reveals a sharper question taking shape inside enterprises: AI investment is no longer in doubt, but the systems beneath it may not be built to carry it, at scale.

According to Building Durable AI Advantage, a report sponsored by Tata Communications and produced in partnership with Bloomberg Media Studios, three in four enterprise leaders (77%) now treat AI as a board-level priority. Yet 65% are still operating on legacy or developing infrastructure not designed for the data intensity and integration demands of enterprise AI. Just 29% say their infrastructure can scale with evolving business demands — a critical gap, given that AI workloads do not rise in a smooth line. They surge, shift across environments and place pressure on the weakest parts of the system.

The study, which surveyed 501 senior executives across North America, Europe and Asia at enterprises with revenues above $500 million, identifies five reinforcing systems — or “loops” — that determine whether AI investment compounds in value or plateaus over time. The loops span Foundation (infrastructure modernisation), Integration (interoperability across systems), Skills (capability distribution), Governance (decision velocity) and ROI (visibility of value). Enterprises can generate isolated gains even when a single loop is under strain. Lasting performance, however, depends on alignment across all five: when the loops reinforce one another, progress accelerates and advantages compound; when any one stalls, constraints spread and momentum weakens.

Where the constraints are building

The research finds pressure points emerging across each of the five loops:

  • Foundation: Modernisation is uneven. Fewer than half of enterprises report fully modernised network connectivity, hybrid deployment flexibility or data architecture. Enterprises with advanced infrastructure are nearly twice as likely to report realising high business value from AI as those operating on legacy systems.
  • Integration: 28% of leaders cite difficulty integrating AI with legacy systems as a primary roadblock to value, while 38% say integration concerns contribute to delays in approval and procurement cycles. Two-thirds (67%) view the seamless blending of digital automation and human interaction across channels as critical to AI execution.
  • Skills: 30% of enterprises cite skill gaps and a shortage of specialised talent as a primary barrier to realising AI value. The pressure intensifies with scale — 45% of enterprises with revenues above $5 billion cite the skills gap, well above the study average.
  • Governance: 42% of enterprises identify security and compliance reviews as the largest source of approval delays, followed by integration concerns (38%) and procurement complexity (38%). As stakeholder committees grow for higher-value investments, governance risks becoming a brake on scale rather than a discipline that supports it.
  • ROI: Nine in 10 enterprises see some value from modernisation initiatives, yet more than six in ten say they have not reached optimal outcomes. Part of the challenge is visibility — when AI, infrastructure and security are each tracked in isolation, the broader impact across the business stays hidden. Value looks contained inside individual programmes and reinvestment follows that narrower signal.

Sumeet Walia, President & Chief Revenue Officer, Tata Communications, said: “AI has become one of the defining business priorities of our time, but the real differentiator is no longer AI itself — it's the infrastructure and integration that enable AI to deliver value at scale. Our research shows that while enterprise ambition is accelerating, readiness remains uneven. The organisations that will lead in the years ahead are those investing in the foundations that connect people, systems, data and intelligence across the enterprise.

“AI is a tightly coupled ecosystem of compute, power, connectivity and platforms, which are no longer independent systems – they are becoming one unified infrastructure. AI is accelerating this convergence, which Tata Communications addresses through its digital fabric of solutions — it is where we are uniquely positioned to enable customers to achieve their business goals."

To explore the full findings of the Building Durable AI Advantage report, please visit here.

 

Media contact:

Judhajit Basu

Tata Communications

judhajit.basu@tatacommunications.com

About Tata Communications

A part of the Tata Group, Tata Communications (NSE: TATACOMM; BSE: 500483) is a global digital ecosystem enabler powering today’s fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next gen connectivity, cloud hosting and security solutions and media services. 300 of the Fortune 500 companies are its customers and the company connects businesses to 80% of the world’s cloud giants. For more information, please visit www.tatacommunications.com

Forward-looking and cautionary statements

Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications Limited’s Annual Reports.

The Annual Reports of Tata Communications Limited are available at www.tatacommunications.com. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.

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