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Can AI Solve Technical Debt? A Realistic Look at IT Modernization for SMBs

A collaborative approach to AI and IT modernization for technical debt management.

Artificial intelligence (AI) promises to revolutionize IT modernization, offering faster, cheaper, and more effective ways to address challenges like technical debt. McKinsey’s article, AI for IT Modernization: Faster, Cheaper, Better,” explores the potential of generative AI (gen AI) agents to modernize legacy systems and refactor outdated codebases.

While this sounds compelling, small and midsize businesses (SMBs) may not have such imposing needs that justify building an army of AI agents:

  • How much does it cost to develop and manage this AI army?
  • Can it be repurposed beyond the initial mission?
  • What risks and inefficiencies come with implementing AI-driven modernization?

While “building and training an army of gen AI agents” to refactor and modernize code bases sounds compelling, the article doesn’t tell us the business case from a total cost/benefit perspective.  How much does it cost to build this army?  Can it be built to be repurposed once the initial mission is complete – or is it a one-off job?  How do you make efficient processes to allow effective interaction with these agents without spending considerable time trying to “speak” (and understand) the same language?  How do you manage and mitigate risks?

AI as a Complement, Not a Replacement

While AI holds promise, it isn’t a one-size-fits-all solution for SMBs. Building an army of AI agents requires an analysis of the point at which the investment is justified.  In many cases, it should be seen as a tool that complements human expertise. Our teams have used this approach selectively to help build specific modules or parts of modules that are (for now anyway) less technically demanding and that can be done primarily through manual input.  This hybrid approach—leveraging AI where it adds value while relying on proven risk management strategies—can yield the best results.

At Tangonet Solutions, we guide SMBs through this hybrid model, helping them determine where AI fits into their modernization journey.

The potential of AI for IT modernization is exciting. Still, SMBs must approach it cautiously and understand that the cost-benefit of complete automation may not yield results that favor using the wholly automated “Army of AI Agent” approach. By combining AI-driven tools with expert guidance, businesses can overcome technical debt and build scalable, future-ready systems.  Using the hybrid approach, we can still do the job faster and more efficiently at a reduced cost.

At Tangonet Solutions, we help you modernize your IT infrastructure through traditional methods or cutting-edge AI solutions.

Schedule a call today to learn how we can support your IT modernization journey.

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