Artificial intelligence is now a top priority for businesses around the world, yet many companies are finding it difficult to turn their AI ambitions into reality because of aging technology infrastructure, according to a new report from Tata Communications and Bloomberg Media Studios.

The study, Building Durable AI Advantage, surveyed 501 executives from large enterprises with annual revenues exceeding $500 million across North America, Europe, and Asia.

The report found that 77% of business leaders consider AI a key priority for their boards and leadership teams. However, despite the growing focus on AI, many organisations are still not fully prepared to support large-scale deployments. Nearly two-thirds of respondents said their companies continue to operate on legacy or evolving infrastructure, while only 29% believe their current systems can handle future AI demands effectively.

Researchers identified five key areas influencing AI success: infrastructure, integration, workforce skills, governance, and return on investment.

A major concern is the state of enterprise infrastructure. Less than half of the surveyed organisations said they have modern network connectivity, flexible hybrid environments, or advanced data systems needed to support AI-driven operations.

Integrating AI with existing technology is proving challenging as well. More than a quarter of executives said connecting new AI tools with older systems remains difficult, and many reported that integration concerns often slow down technology purchasing decisions.

The talent gap is another obstacle. Three in ten companies said a shortage of AI-related skills is limiting progress. Among enterprises with revenues above $5 billion, that figure rises to 45%, highlighting the growing demand for experienced AI professionals.

Security, compliance, and governance processes are also affecting deployment timelines. More than four in ten respondents said internal reviews and regulatory requirements frequently delay AI projects.

Sumeet Walia, President and Chief Revenue Officer at Tata Communications, said businesses are increasingly recognising AI as a strategic priority, but technology alone is not enough to create value. He noted that the ability to scale AI successfully depends on having the right infrastructure, connectivity, and integration capabilities in place.

According to Walia, AI is bringing together computing, connectivity, power, and digital platforms into a more connected ecosystem. He said organisations that build strong foundations today will be better positioned to realise the full benefits of AI in the years ahead.

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