Why AI is making businesses rethink their software foundations

Propel Tech’s own research, based on feedback from more than 900 business and technology leaders, found that 93% of organisations are already investing in AI and 95% expect that investment to increase.

Yet alongside this growing enthusiasm, the research also highlighted a significant challenge. Nearly a third of organisations reported data quality issues, while a similar number identified limitations within their existing systems as barriers to achieving their AI ambitions.

As organisations begin to explore new opportunities, many are discovering that the conversation quickly extends beyond AI itself and into the systems, software and processes that support it.

The growing importance of software foundations

Most organisations have built their technology landscape over many years. New platforms have been introduced, systems have been integrated, processes have evolved, and teams have adapted the way they work. This is rarely a problem when systems continue to meet operational needs. However, as businesses grow, requirements become more complex and expectations increase, limitations can begin to appear.

Why data quality matters more than ever

Most AI initiatives rely on access to accurate, structured and reliable information. If data is inconsistent, fragmented or difficult to access, the value that can be generated becomes limited.

This reflects what we are seeing through our research. While organisations are excited by the opportunities AI presents, many are uncovering underlying challenges around data quality, accessibility and consistency. These foundations have always been important, but they are becoming increasingly visible as businesses look to make greater use of AI and automation.

The challenge of disconnected systems

One of the most common barriers to efficiency is the number of systems organisations rely upon to run day-to-day operations. As organisations explore automation and AI-enabled workflows, inefficiencies between systems become increasingly difficult to ignore.

Revisiting legacy systems

Many organisations continue to rely on business-critical software developed years ago. Historically, modernisation projects have often been delayed because they appeared costly, disruptive or difficult to justify, but advances in software engineering practices, development tooling and AI-assisted delivery are now helping to change that equation putting bespoke AI Syatems within reach for many orgainsations that previously could only hope to patch old systems or rely on SaaS products.

Why successful AI projects start with strong engineering foundations

As organisations look to accelerate AI adoption, many are discovering that success depends on more than introducing new AI tools or capabilities. At Propel Tech, we have seen that organisations achieve the best outcomes when they combine AI adoption with strong software engineering practices. Clean architecture, reliable data, governance controls and scalable systems provide the foundations that allow AI to deliver value consistently over time.

Our AI Engineering Model was developed to help organisations accelerate delivery while maintaining the standards required for long-term success.

1. Structure – Clean architecture, code quality and governance foundations before acceleration.
2. Accelerate – AI-assisted build loops for development, refactoring, testing and migration.
3. Validate – Senior developer review, architectural control and production readiness gates.
4. Govern – Secure data boundaries, protection and audit trails.
5. Optimise – Documentation, knowledge extraction and continuous improvement.

The result is a structured approach that balances innovation and speed with long-term maintainability and commercial value.

Preparing for the future

When we asked organisations what they wanted software to improve most over the next decade, the top answer was better decision-making through improved analytics and insight.

This reflects a wider shift in priorities. Businesses are looking beyond simple automation and focusing on how technology can help leaders make faster, better-informed decisions. Achieving that requires reliable data, connected systems, trained teams that can work with AI and software that provides visibility across the organisation.

Looking beyond individual technologies

Our latest research found that 95% expect AI investment to increase over the coming years.

At the same time, almost a third reported data quality issues and system limitations as barriers to progress. Whether that involves modernising legacy applications, improving integrations, strengthening data foundations or developing bespoke software, many businesses are using this moment as an opportunity to build stronger foundations for future growth.

Could your software foundations support what’s next?

At Propel Tech, we help organisations modernise systems, engage AI, improve integrations and develop bespoke AI-enabled software that supports long-term business goals. Speak to our team about how we can help you get the AI foundations right to get bespoke AI-enabled systems working for you quickly and efficiently with expert developer support.