Rethinking architecture in the age of AI: Findings from our latest research report

Moti Rafalin

April 28, 2025

The rise of AI-driven code development is fundamentally reshaping the demands on software architecture. As AI accelerates the creation of new features, services, and applications, it also expedites application complexity, often without a system-wide view. Without strong architectural oversight, AI-generated code can lead to service duplication, unwanted dependencies, and microservices sprawl.

Architecture has a critical role to play in keeping systems resilient, scalable, and secure as they evolve. But today, architecture is often poorly documented, disconnected from day-to-day development, and left to drift. That gap isn’t just a technical problem, it’s a business risk, leading to project delays, security vulnerabilities, and performance challenges that organizations can’t afford to ignore.

That’s why we conducted a new research study with over 600 senior technology leaders, including architects, engineering leaders, and CTOs across the U.S. and U.K. To understand where architecture stands today, and where it must evolve to meet the demands of the AI era, we surveyed experts from organizations ranging from $100M in revenue to enterprises exceeding $10B.

Critical disconnect

Survey results expose a critical disconnect between architectural intent and implementation reality.

The findings are striking

  • 93% of organizations report negative business outcomes tied to architectural misalignment.
  • Approximately 50% cite misalignment as a cause of project delays, security and compliance risks, and unexpected operational costs.
  • Only 43% say their architecture documentation fully reflects production reality.
  • 90% agree that architectural insights should be integrated into observability tools to address application issues before they become outages.

While architecture is recognized as essential, many organizations still struggle to keep it aligned with fast-changing production environments. Smaller companies ($100M–$999M) maintain better alignment compared to enterprises above $1B, suggesting that architectural control decreases as organizations and complexity scale.

Why acting now matters

AI isn’t slowing down and neither is the pressure to deliver faster, more complex systems. Waiting to integrate architectural practices risks locking in technical debt and instability that become harder to unravel later. Without action, organizations risk scaling complexity instead of innovation.

This report explores how new technologies like OpenTelemetry, AI and architectural observability are reshaping how we build and govern modern systems—and why organizations must rethink architecture not just as a design artifact, but as a continuously manageable process embedded in the SDLC and security practices of the organization supported by real time observability tools .

I invite you to dive into the full research report to see where the gaps are, why they matter, and how organizations can close them.

Moti Rafalin

CEO, co-founder

Moti Rafalin co-founded vFunction and serves as its CEO. He brings over 20 years of experience in the enterprise software market to his role, with a focus on infrastructure, applications, and security. Prior to co-founding vFunction, Moti co-founded and led WatchDox from inception until its acquisition by BlackBerry, growing the company over 20 consecutive quarters and establishing it as a leader in the secure enterprise mobility and collaboration space. Subsequently, he served as Senior Vice President at BlackBerry LTD. Before WatchDox he was a general manager of the application management business at EMC. He holds an engineering degree from Technion and an MBA from the Harvard Business School.

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