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Fox Business - Kyndryl CEO reveals reason for 'FOCUS' on AI

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Author: Fox Business
Categories: Business Technology
Tags: business, technology
Views: 2 · Last viewed: 2026-10-16 13:20 UTC

Short Summary

Main recommendation: Companies should modernize their underlying infrastructure and data systems before or alongside AI deployment, and Kyndryl positions itself as the partner to do that work. Kyndryl's CEO, Martin Trotter, argues that AI pilots are proving effective, but scaling them requires updating legacy systems and preparing staff, which Kyndryl's new "Kyndryl AI" offering aims to address.

Key Points

  • A Kyndryl survey of 2,000 businesses found nearly half say their organizations are behind on technology upgrades, and only 9 percent fully understand how AI applications connect and are controlled.
  • Trotter's analogy: AI is a fast "bullet train" that can run at 100 miles per hour, but the tracks it runs on are 30-mile tracks, so infrastructure has to catch up.
  • Kyndryl's model is deploying engineers to map customers' process flows, application logic, and business logic before scaling AI.
  • Kyndryl says its business is built on resiliency and security services, which it argues provide steady, outcome-based revenue.
  • The anchor notes the stock's decline (down 56 percent year to date and about 50 percent since the IBM spinoff), and Trotter says this does not reflect the company's improved profitability and stabilized revenue, which he argues the market will eventually recognize.

Details Worth Noting

  • Concrete instructions: The transcript gives no step-by-step method for a company to follow itself. The actionable items it does name are: (1) map existing process flows, application logic, and business logic and how systems depend on one another; (2) run a short AI pilot, which Trotter says Kyndryl can set up in days, with the goal of a scalable result within about a week; (3) modernize infrastructure so it can handle AI workloads; and (4) prepare people to use the new tools.
  • Trotter cites the Arizona DMV and a regulatory-process customer in Europe as examples where the approach is already working, though he gives no outcome figures.
  • The speaker describes Kyndryl's customer base as including systems of record, front-end systems, airline reservation systems, and telecom systems.
  • The company was spun off from IBM in 2021 and went public in 2022; Trotter names Dow Chemical and IBM as large customers.
  • The transcript includes claims from the speaker about profitability and business model that are not independently verified and should be treated as the company's own position.

Bottom Line

The interview frames AI success as mainly an infrastructure and integration problem, and presents Kyndryl as a provider of that modernization work, with its investment case resting on its own outcome-based model.