Cloudflare, Inc.'s 2026 App Innovation Report underscores the importance of application modernisation for successfully using AI.
"To succeed with AI, having a modern and secure foundation is non-negotiable. This report made clear that organisations that prioritise modernisation can innovate at speed and scale, while those that don't are likely to become a threat actor's next target," said Matthew Prince, CEO and co-founder of Cloudflare.
Cloudflare's 2026 App Innovation Report
According to the report, companies that modernise their applications are three times more likely to achieve a clear return on investment (ROI) from AI. A significant majority (93%) of leaders believe that updating their software is the most critical factor in enhancing their AI capabilities.
Additionally, 91% of leading organisations have already integrated AI into their existing portfolios, and 74% plan to increase their integration efforts in the coming year.
The study highlights that companies that align their security measures with their modernization efforts are four times more likely to achieve advanced AI maturity. It also warns about the dangers of inaction; organisations that are lagging in modernisation report 85% less confidence in their infrastructure and often only modernize "reactively" after experiencing a security breach.
During the modernization process, simplicity is essential. In fact, 96% of companies find their complex technology stacks challenging to manage. As a result, the majority (85%) are actively eliminating redundant tools and "shadow IT" to improve their speed and efficiency.
"If you aren't modernising your business to embrace AI and prevent the next wave of cyberattacks, you aren't just standing still, you're rapidly falling behind. The winners of this era of the Internet will ultimately be defined by their infrastructure," Prince added.
