AI Shines Bright in APM, But Challenges Remain

Sudhir Jha

Performance management of enterprise applications is key to achieving business objectives and maximizing returns on IT investments. But with increasing system complexity, rapidly evolving platforms, shorter time to market and inadequate quantitative models and tools, performance management often represents one of the most challenging aspects for enterprise IT.

The hype around artificial intelligence (AI) is beginning to settle, and companies are beginning to see measurable change from early investments in the technology. This initial success, however nascent, is silencing some of the doubt that AI would be able to deliver on its promise.

The deluge of data created by IT infrastructures that generate data every second often takes great investments of time to make sense of. Leveraging AI or machine learning technologies in Application Performance Management (APM) simplifies the complex IT systems, automates application-environment discovery and makes for smarter decisions faster with proactive problem resolution. The benefits of AI-driven APM solutions seem obvious but raise important questions around AI technologies and its greater impact.

To better understand the state of AI among enterprises across industries, Infosys commissioned a survey of more than 1,000 global C-level executives and IT decision makers (ITDMs). The survey focused on the impact AI deployments are having on organizations and reveals the return on investment (ROI) of current AI deployments, as well as its impact on leadership and the workforce.

The research, Leadership in the Age of AI Report, makes clear that AI technologies are no longer experimental, rather they are already broadly deployed, producing real results and impacting business strategy, IT investments, and the workforce.

AI Beyond Automation

The research found that 86 percent of organizations surveyed have middle or late-stage AI deployments and view AI as a major facilitator of future business operations.

Nine out of 10 C-level executives reported measurable benefits from AI within their organizations.

AI is dependent upon data quality and accessibility, making APM a critical underpinning to success of AI initiatives. AI is not a standalone application but part of a knowledge management ecosystem that involves layers of business and IT data. Machine learning, computer vision, and automated reasoning and other technologies may be part of that ecosystem.


The survey found the top strategic advantages organizations report from their AI deployments are improved process performance (45 percent), productivity gains due to IT time spent on higher-value work (40 percent) or related to fewer staff needed to accomplish analogous workloads (38 percent), improved compliance, security and risk management (38 percent).

But the positive effects of AI within organizations go beyond driving efficiencies, as three-fourths of C-level executives said they expect AI to impact their organization's offerings even more than they would impact organizational processes.

The research also showed that the majority of organizations start off using AI to automate or improve routine or inefficient processes with 66 percent of organizations primarily leveraging AI for business process automation.

When looking at companies with later stage AI deployments, 80 percent of IT decision makers (ITDMs) reported they are using AI to augment existing solutions or build new business-critical solutions and services to optimize insights and the consumer experience. Here, APM can play a significant role in how these insights are derived.

Challenges in the Age of AI

AI may end up being a boon to APM solutions — but that's not to say there won't be challenges to address in the new age of AI. Companies need to ensure that their most important investment, their people, are prepared for a future fueled by automation and are equipped with the necessary skills for the new roles AI will create. Additionally, companies need to provide the necessary resources and time to support the learning curve that comes with these technologies.

IT has been the primary focus of AI initiatives, and will continue to be for the foreseeable future. The survey found 61 percent of respondents agreed that IT will be the most impacted job function over the next five years. As IT departments continue to implement AI-based tools, they will become imperative for modern IT operations.

Similar to APM solutions, data largely underpins the successful use of AI. Another challenge important to note as the age of AI takes hold is 49 percent of respondents reported that their organization is unable to deploy the AI technologies they want because their data is not ready to support them. As such, 77 percent of ITDMs reported they plan to invest in data management.

Artificial Intelligence is rapidly being adopted by companies across industries and most would agree that it holds the potential to unlock benefits currently untapped by existing IT. So far, the arc of AI leans toward empowerment and giving IT and business organizations the tools necessary to automate redundant tasks, detect and analyze hidden patterns in data and generally make possible revolutionary insights that will help achieve objectives.

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AI Shines Bright in APM, But Challenges Remain

Sudhir Jha

Performance management of enterprise applications is key to achieving business objectives and maximizing returns on IT investments. But with increasing system complexity, rapidly evolving platforms, shorter time to market and inadequate quantitative models and tools, performance management often represents one of the most challenging aspects for enterprise IT.

The hype around artificial intelligence (AI) is beginning to settle, and companies are beginning to see measurable change from early investments in the technology. This initial success, however nascent, is silencing some of the doubt that AI would be able to deliver on its promise.

The deluge of data created by IT infrastructures that generate data every second often takes great investments of time to make sense of. Leveraging AI or machine learning technologies in Application Performance Management (APM) simplifies the complex IT systems, automates application-environment discovery and makes for smarter decisions faster with proactive problem resolution. The benefits of AI-driven APM solutions seem obvious but raise important questions around AI technologies and its greater impact.

To better understand the state of AI among enterprises across industries, Infosys commissioned a survey of more than 1,000 global C-level executives and IT decision makers (ITDMs). The survey focused on the impact AI deployments are having on organizations and reveals the return on investment (ROI) of current AI deployments, as well as its impact on leadership and the workforce.

The research, Leadership in the Age of AI Report, makes clear that AI technologies are no longer experimental, rather they are already broadly deployed, producing real results and impacting business strategy, IT investments, and the workforce.

AI Beyond Automation

The research found that 86 percent of organizations surveyed have middle or late-stage AI deployments and view AI as a major facilitator of future business operations.

Nine out of 10 C-level executives reported measurable benefits from AI within their organizations.

AI is dependent upon data quality and accessibility, making APM a critical underpinning to success of AI initiatives. AI is not a standalone application but part of a knowledge management ecosystem that involves layers of business and IT data. Machine learning, computer vision, and automated reasoning and other technologies may be part of that ecosystem.


The survey found the top strategic advantages organizations report from their AI deployments are improved process performance (45 percent), productivity gains due to IT time spent on higher-value work (40 percent) or related to fewer staff needed to accomplish analogous workloads (38 percent), improved compliance, security and risk management (38 percent).

But the positive effects of AI within organizations go beyond driving efficiencies, as three-fourths of C-level executives said they expect AI to impact their organization's offerings even more than they would impact organizational processes.

The research also showed that the majority of organizations start off using AI to automate or improve routine or inefficient processes with 66 percent of organizations primarily leveraging AI for business process automation.

When looking at companies with later stage AI deployments, 80 percent of IT decision makers (ITDMs) reported they are using AI to augment existing solutions or build new business-critical solutions and services to optimize insights and the consumer experience. Here, APM can play a significant role in how these insights are derived.

Challenges in the Age of AI

AI may end up being a boon to APM solutions — but that's not to say there won't be challenges to address in the new age of AI. Companies need to ensure that their most important investment, their people, are prepared for a future fueled by automation and are equipped with the necessary skills for the new roles AI will create. Additionally, companies need to provide the necessary resources and time to support the learning curve that comes with these technologies.

IT has been the primary focus of AI initiatives, and will continue to be for the foreseeable future. The survey found 61 percent of respondents agreed that IT will be the most impacted job function over the next five years. As IT departments continue to implement AI-based tools, they will become imperative for modern IT operations.

Similar to APM solutions, data largely underpins the successful use of AI. Another challenge important to note as the age of AI takes hold is 49 percent of respondents reported that their organization is unable to deploy the AI technologies they want because their data is not ready to support them. As such, 77 percent of ITDMs reported they plan to invest in data management.

Artificial Intelligence is rapidly being adopted by companies across industries and most would agree that it holds the potential to unlock benefits currently untapped by existing IT. So far, the arc of AI leans toward empowerment and giving IT and business organizations the tools necessary to automate redundant tasks, detect and analyze hidden patterns in data and generally make possible revolutionary insights that will help achieve objectives.

Related Links

Hot Topics

The Latest

Alert Fatigue Is No Longer a Morale Problem, It's a Reliability Risk and a System Failure

For years, production operations teams have treated alert fatigue as a quality-of-life problem: something that makes on-call rotations miserable but isn't considered a direct contributor to outages. That framing doesn't capture how these systems fail, and we now have data to show why. More importantly, it's now clear alert fatigue is a symptom of a deeper issue: production systems have outgrown the current operational approaches ...

Most Enterprises Think They Can Switch AI Vendors in a Month ... Most Who've Tried Couldn't

I was on a customer call last fall when an enterprise architect said something I haven't been able to shake. Her team had just spent four months trying to swap one AI vendor for another. The original plan said three weeks. "We didn't switch vendors," she told me. "We rebuilt half our integrations and discovered what we'd actually been depending on." Most enterprise leaders don't expect that to be the experience ...

Your Observability Stack Has a Telemetry Pipeline Problem

Ask any senior SRE or platform engineer what keeps them up at night, and the answer probably isn't the monitoring tool — it's the data feeding it. The proliferation of APM, observability, and AIOps platforms has created a telemetry sprawl problem that most teams manage reactively rather than architect proactively. Metrics are going to one platform. Traces routed somewhere else. Logs duplicated across multiple backends because nobody wants to be caught without them when something breaks. Every redundant stream costs money ...

Operator to Orchestrator: 80% of IT Pros See Shift in Role as AI Permeates Workflows

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40% of organizations deploying AI will implement dedicated AI observability tools by 2028 to monitor model performance, bias and outputs, according to Gartner ...

Almost Half of AI-Generated Code Fails in Production

Until AI-powered engineering tools have live visibility of how code behaves at runtime, they cannot be trusted to autonomously ensure reliable systems, according to the State of AI-Powered Engineering Report 2026 report from Lightrun. The report reveals that a major volume of manual work is required when AI-generated code is deployed: 43% of AI-generated code requires manual debugging in production, even after passing QA or staging tests. Furthermore, an average of three manual redeploy cycles are required to verify a single AI-suggested code fix in production ...

AI Requires Design, Not Edicts

Many organizations describe AI as strategic, but they do not manage it strategically. When AI plans are disconnected from strategy, detached from organizational learning, and protected from serious assumptions testing, the problem is no longer technical immaturity; it is a failure of management discipline ... Executives too often tell organizations to "use AI" before they define what AI is supposed to change. The problem deepens in organizations where strategy isn't well articulated in the first place ...

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Today's modern systems are not what they once were. Organizations now rely on distributed systems, event-driven workflows, hybrid and multi-cloud environments and continuous delivery pipelines. While each adds flexibility, it also introduces new, often invisible failures. Development speed is no longer the primary bottleneck of innovation. Reliability is ...

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