Accelerating AI Innovation through Application Modernization
In partnership with Microsoft Azure and AMD, business applications powered by AI are revolutionizing customer experiences, accelerating the speed of business, and driving employee productivity. In fact, according to research firm Frost & Sullivan’s 2024 Global State of AI report, 89% of organizations believe AI and machine learning will help them grow revenue, boost operational efficiency, and improve customer experience.
Real-World Examples of AI in Action
Take for example, Vodafone. The telecommunications company is using a suite of Azure AI services, such as Azure OpenAI Service, to deliver real-time, hyper-personalized experiences across all of its customer touchpoints, including its digital chatbot TOBi. By leveraging AI to increase customer satisfaction, Naga Surendran, senior director of product marketing for Azure Application Services at Microsoft, says Vodafone has managed to resolve 70% of its first-stage inquiries through AI-powered digital channels. It has also boosted the productivity of support agents by providing them with access to AI capabilities that mirror those of Microsoft Copilot, an AI-powered productivity tool.
“The result is a 20-point increase in net promoter score,” he says. “These benefits are what’s driving AI infusion into every business process and application.”
The Need for Modernization
Yet realizing measurable business value from AI-powered applications requires a new game plan. Legacy application architectures simply aren’t capable of meeting the high demands of AI-enhanced applications. Rather, the time is now for organizations to modernize their infrastructure, processes, and application architectures using cloud native technologies to stay competitive.
The Time is Now for Modernization
Today’s organizations exist in an era of geopolitical shifts, growing competition, supply chain disruptions, and evolving consumer preferences. AI applications can help by supporting innovation, but only if they have the flexibility to scale when needed. Fortunately, by modernizing applications, organizations can achieve the agile development, scalability, and fast compute performance needed to support rapid innovation and accelerate the delivery of AI applications.
Example: Coles Supermarkets
Consider, for example, Coles, an Australian supermarket that invested in modernization and is using data and AI to deliver dynamic e-commerce experiences to its customers both online and in-store. With Azure DevOps, Coles has shifted from monthly to weekly deployments of applications while, at the same time, reducing build times by hours. By aggregating views of customers across multiple channels, Coles has been able to deliver more personalized customer experiences.
Security Challenges in AI Applications
But even the most carefully designed applications are vulnerable to cybersecurity attacks. If given the opportunity, bad actors can extract sensitive information from machine learning models or maliciously infuse AI systems with corrupt data. “AI applications are now interacting with your core organizational data,” says Surendran. “Having the right guard rails is important to make sure the data is secure.”
Best Practices for Application Modernization
- Train Employees for Speed: Developers must be prepared to work faster and smarter than ever.
- Start with an Assessment: Evaluate the application landscape before embarking on a modernization journey.
- Focus on Quick Wins: Modernize some apps quickly and demonstrate ROI.
- Partner Up: Collaborate with the right partners for change management.
- Address All Layers of Security: Adopt a multi-layer approach to security.
A Look to the Future
Most organizations are already aware of the need for application modernization. With AI’s arrival, modernization must be executed correctly to maximize business impact. Adopting a cloud native architecture can enhance performance, scalability, security, and ongoing innovation.
Read more about how to accelerate app and data estate readiness for AI innovation with Microsoft Azure and AMD.
