Upgrade Apps to Triple AI Returns, Cloudflare Study Finds
Introduction
Generally, I Think companies are starting to figure out that AI is not just a buzzword. Actually, they are pouring lots of money into it, and launching pilots, and buying tools, but still many of them can’t see the real payoff, which is kinda weird. Recently, The 2026 Cloudflare App Innovation Report, which surveyed over 2,300 senior leaders across APAC, EMEA and the Americas, found out that modernising apps is the key to getting value from AI, and in APAC especially, 92% of leaders said that updating applications is the top factor that boosts AI capability, which is a pretty big deal.
Modernisation: The Foundation of AI Success
Obviously, We need to stop blaming AI tools for our problems, and start looking at the real issue, which is that our old legacy apps are not good enough. Basically, AI needs smooth data flow, flexible architecture and solid integrations, and when we upgrade our apps, we give AI the room it needs to experiment, scale and adapt without constant roadblocks, which is really important. Normally, old apps choke on these things, but modernised apps can handle them easily.
Apparently, The report calls this a “reinforcing cycle”, where we upgrade our apps, and AI delivers wins, and those wins fund more upgrades, which is a pretty good cycle to be in. Currently, In APAC, 90% of modernised firms already have AI woven into existing apps, while laggards are still stuck with isolated pilots, which is a big difference.
A Shift in Mindset
Usually, We used to think AI was a side-project, something you test in a sandbox, but now it’s becoming a core piece of everyday systems, from internal workflows to the customer-facing experiences, which is a big change. Naturally, Leaders who treat AI as an integration point see it cut costs, spark new content ideas and open fresh revenue streams, which is really good. Obviously, Those who lag, however, keep AI in a silo, and it’s cautious, fragmented, and barely moving the needle, which is not good.
Sometimes, You can see that AI is not just a tool, but a way of thinking, and when you integrate it into your systems, you can get a lot of benefits, but when you keep it separate, you don’t get much, which is kinda obvious.
The Hidden Costs of Delay
Clearly, When we wait too long to modernise, we end up firefighting, and security breaches, system outages and tech debt pile up, which is really bad. Generally, In APAC those companies report low confidence in both their infrastructure and their teams’ ability to support AI, slowing decisions and shrinking the AI pipeline, which is a big problem. Normally, Security is a big piece of this puzzle, and companies that align security and app teams from the start can scale AI faster, which is really important.
Usually, When that alignment is weak, security issues eat up resources and push AI down the priority list, which is not good, and you can see that security is a key part of the equation, and when you get it right, you can get a lot of benefits, but when you get it wrong, you can get a lot of problems.
Simplifying the Tech Stack
Obviously, Tool sprawl is a nightmare, and too many redundant platforms, and shadow IT creeping in, is really bad, and 86% of APAC leaders say they’re actively trimming those excess tools, which is a good thing. Normally, The goal isn’t just cost-saving, but clarity, and a lean stack means easier modernisation, consistent security and smoother AI integration, which is really important. Generally, When you have a simple tech stack, you can focus on the things that matter, and you can get a lot of benefits, but when you have a complex tech stack, you can get a lot of problems.
Sometimes, Developers in modernised firms spend more time improving what exists, not rebuilding from scratch, which is really good, and in lagging firms, devs are stuck fixing configs and patching gaps, which stalls AI projects, and you can see that when you have a good tech stack, you can get a lot of benefits, but when you have a bad tech stack, you can get a lot of problems.
Conclusion: Building the Right Foundation
Generally, The Cloudflare study makes it clear that AI success isn’t about racing to the newest model, but about clearing the road for AI to run, and application modernisation, security alignment and AI integration need to be treated as a single, intertwined priority, which is really important. Obviously, If you invest in AI without modernising your apps, you’ll get shallow results, and if you modernise without a clear AI plan, you’ll chase an endless upgrade loop, which is not good.
Clearly, The winners are the ones that upgrade their apps, lock in security early and let AI do the heavy lifting, and you can see that when you get it right, you can get a lot of benefits, but when you get it wrong, you can get a lot of problems, which is kinda obvious, and you should try to get it right, and not get it wrong, which is really important.
