EY – Recoding the Core: Scaling AI Across Complex Business Functions

This report discusses how organizations can transform foundational business functions by scaling AI through AI-first managed services.

It focuses on overcoming barriers to AI adoption in complex business functions and turning these functions from cost centers into strategic enablers. The global services economy is undergoing transformation due to technological disruption and a multipolar geopolitical landscape. Legacy systems and outdated operating models hinder AI scaling and value creation. The concept of "recoding the core" involves redesigning business functions with AI-led, tech-first models to achieve efficiency, speed, and agility. Many organizations remain people-led with technology playing a supporting role, limiting transformation. Major barriers include poor workflow integration, failure to move beyond pilots, and viewing AI as a technology upgrade rather than business transformation. Partnering with AI-first managed services providers like EY can overcome these barriers and help build AI-powered enterprises.