A recent report from Cloudflare highlights the challenges many organizations face in achieving tangible returns from their Artificial Intelligence (AI) investments. Despite increasing AI adoption, ongoing pilot projects, and allocated budgets, many companies still struggle to see consistent and significant results.
According to Cloudflare's 2026 App Innovation Report, the disparity in AI effectiveness often lies not in the AI technology itself, but in the underlying application foundation. The report concludes that modernizing applications can significantly triple an organization's odds of realizing better returns from its AI initiatives. This suggests that outdated or inefficient application infrastructure can be a major impediment to unlocking AI's full potential.