JAKARTA - Cloudflare's latest report reveals that many organizations in Asia Pacific (APAC) still face hidden barriers to AI innovation due to outdated application foundations.
Seeing this fact, in a report titled App Innovation Report 2026, Cloudflare assessed that modernizing applications early on is the key to breaking through these barriers.
In the APAC region, this report found that companies that have modernized their applications are three times more likely to obtain a clear return on investment (ROI) from the implementation of AI.
In fact, 92% of leaders in the Asia Pacific region say that updating their software is the most important factor in improving their AI capabilities.
As the technology foundation is improved, the organization's approach to AI also changes. The Cloudflare report notes that 90% of organizations in APAC have now integrated AI into their existing application portfolio, rather than just testing it separately.
This trend is expected to continue, with 80 percent of organizations planning to deepen AI integration in the next year.
Conversely, organizations that lag behind in modernization face greater risks. They tend to have less confidence in their technology infrastructure and only make updates after a cyber security incident.
In addition, Cloudflare also highlights the problem of excess technology tools as an obstacle to efficiency. To reduce system complexity and accelerate innovation, 86% of APAC organization leaders are now actively consolidating technology by reducing redundant tools and shadow IT practices.
Through this report, Cloudflare asserts that without a modern application foundation, efforts to maximize AI risk not only failing to deliver business value, but also opening the door to future operational disruptions and security threats.
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