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Reston Today
By the People, for the People
Modus Create Study Reveals Challenges Slowing Product Innovation Amid AI Adoption
Research shows most companies claim AI integration, but few are fully integrated, as pressure to prove ROI intensifies.
Published on Feb. 24, 2026
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A new study from Modus Create, a global digital product engineering firm, surveyed over 500 business leaders across Europe and the U.S. to explore product engineering strategies in the AI landscape. The study found that while 84% of companies report AI integration, only 28% use AI for prototyping and 38% for coding. Additionally, 90% of leaders say pressure to prove ROI has intensified, forcing teams to prioritize real value over rushed AI implementations. The study also revealed challenges around modernizing legacy systems, governance issues slowing AI rollouts, and the need for external expertise as product teams restructure.
Why it matters
As businesses increasingly look to AI to drive product innovation, this study provides valuable insights into the real-world challenges companies face in effectively integrating and scaling AI capabilities. The findings highlight the gap between AI adoption and achieving meaningful ROI, as well as the organizational and technological hurdles that are slowing progress.
The details
The Modus Create study found that while 84% of companies claim AI integration, only 28% are using AI for prototyping and 38% for coding. This suggests many organizations are still in the early stages of AI adoption. Additionally, 90% of leaders say pressure to prove ROI has intensified, forcing teams to prioritize real value over rushed AI implementations. The study also revealed that 95% of respondents are modernizing legacy systems, with a majority already operating on cloud-based infrastructure. However, 76% of organizations say AI enablement is stymied by regulatory or ethical issues, indicating a need for more advanced governance frameworks. Furthermore, 91% of organizations have restructured their product functions, with the majority reskilling developers (53%) and hiring ML engineers or data scientists (43%), rather than reducing traditional software-engineering roles.
- The study was conducted and published in February 2026.
The players
Modus Create
A global digital product engineering firm that conducted the study.
Sharon Lynch
Chief Executive Officer at Modus Create.
Ascend2
A research firm that partnered with Modus Create on the study.
What they’re saying
“Teams have figured out how to move fast. But they need to understand how that speed connects to business value. Boards and investors aren't asking how many releases you did this quarter — they're asking what it delivered.”
— Sharon Lynch, Chief Executive Officer
The takeaway
This study highlights the challenges businesses face in effectively integrating and scaling AI capabilities to drive product innovation. While many companies have adopted AI, they are struggling to achieve meaningful ROI and overcome organizational and technological hurdles. The findings underscore the need for companies to take a more strategic and measured approach to AI implementation, focusing on outcomes and value rather than rushed deployments.
