With AI spending expected to rise from $340 billion in 2025 to around $3 trillion by 2035, there is no doubt that the technology continues to be must-have for enterprise transformation. At the same time, there is a growing disconnect between the amount of money organizations are investing and the value being realized from productivity gains.
Commonly referred to as the productivity paradox, the widespread failure to scale AI successfully despite having access to budget and resources can be traced back to problems with the circumstances that organizations are applying AI to.
Legacy systems are often the root cause of lackluster performance of AI, and for enterprise organizations this is often a key barrier.
Straive, a leader in data and AI operationalization, has carved out an important role in the AI industry thanks to its ability to transform legacy enterprise systems in order to better unlock value from the technology.
This week, the company achieved a new milestone to expand its engineering service offerings through the acquisition of AI engineering provider NextGen Invent, in a move that looks to help more organizations address the challenges associated with scaling the technology.
A shared vision for AI transformation
Simply relocating legacy systems does not make them agile or ready for AI. As a leading data and AI operationalization company, Straive is one company that understands that helping businesses achieve measurable business impact in part relies on addressing legacy technical debt and breaking down data siloes.
By helping organizations move beyond experimentation and run AI-powered solutions that transform legacy software, Straive is helping businesses thrive in the AI-first world of the future.
This is a mission shared by the leaders at NextGen Invent, who have offices in New York (USA) and Noida (India).
According to Ankor Rai, CEO of Straive, “Straive helps clients build and run AI that replaces and transforms the legacy enterprise. NextGen Invent’s hands-on experience in developing AI solutions and deploying them to transform and automate complex industry-specific workflows fits very well with Straive’s focus on Data & AI Operationalization.”
The acquisition means that the AI engineering, data expertise, and deep domain knowledge at Straive will be complemented by domain expertise and NextGen Invent’s ability to deliver tailored AI engineering solutions for specific industries such as Life Sciences and Manufacturing.
Namit Sureka, President & Chief Analytics & AI Officer at Straive, added that: “By bringing NextGen Invent’s forward-deployed engineers into the Straive fold, we will be accelerating our ability to land and seamlessly scale up to build, run, and transform our clients’ business priorities.”
Solving the productivity paradox
New data has highlighted the scale of the problem associated with technical enterprise debt.
According to the study, the top 2,000 public companies globally have an estimated $18 trillion of value locked up due to legacy systems, siloed data, and technical debt.
Straive is one business helping to adddress this, and the acquisition of NextGen Invent promises to help the company reach more organizations and meet them where they are with tailored solutions.
According to Deepak Mittal, Founder & CEO at NextGen Invent, in a statement from the company: “We share a common vision of helping organizations thrive in an AI-first world. By combining our strengths, we bring industry expertise in AI strategy, scalable AI enablement, governance, and modern data platforms. Backed by strong thought leadership, we help businesses move from intent to impact and from strategy to execution, with global reach.”
“Together, we help clients break free from the costly AI experimentation cycle and rapidly operationalize AI to deliver measurable business impact,” added the executive.
Years of accumulated technical debt, fragmented architectures and siloed data have created systems that are difficult to change, harder to scale and nearly impossible to optimize for AI.
Together, Strive and NextGen Invent are looking to offer the depth of expertise and reach to recoup the trillions of dollars in value that is currently tied up in technical enterprise debt.
The acquisition was made possible thanks to Novistra Capital, who acted as the exclusive sell-side advisor to NextGen Invent.
