MIT NANDA found that 95% of generative AI pilots show no P&L impact, and Gartner expects 40% of agentic AI projects to be cancelled by 2027. Across the 2026 studies the root causes repeat: data readiness, integration with legacy systems, missing governance and skills. In logistics, 65% of operators say they are stuck in ad-hoc experimentation because legacy TMS and WMS systems limit deployment.
The systems are not bad. They are the business. An order platform built a decade ago encodes rules nobody has written down, feeds downstream systems through nightly files and cannot be paused for a rewrite. A big-bang replacement risks the operation; doing nothing means every new AI initiative starts by scraping screens.
Modernization has changed. LLM-assisted code analysis, test generation and language migration remove much of the manual translation that made these projects multi-year. The hard part remains judgment: what to keep, what to strangle, in what order, and how to prove nothing broke.