Generative AI takes center stage as enterprises ramp up mainframe modernization plans

Nearly nine-in-ten businesses are deploying or planning to deploy generative AI tools and solutions to their mainframe environments, according to new research, as enterprises ramp up modernization efforts.

A third of respondents to a survey from Kyndryl said mainframes have become a foundation for running AI-enabled workloads, with almost half saying they aim to use generative AI to unlock and transform critical mainframe data into actionable insights.

And the data residing on the mainframe is becoming important in fueling new generative AI use cases while the technology also has the potential to illuminate the inner workings of monolithic applications.

In one real-world example of how generative AI is supporting mainframe modernization, Kyndryl’s report cited the CTO of a Brazilian insurance company who noted they are uncovering “hidden patterns and insights” in data.

This, the CTO noted, is enabling the insurer to make “more informed decisions regarding risk assessment, pricing, and targeted marketing campaigns”.

"Mainframes continue to occupy a central role in the hybrid world and are evolving to serve new use cases, with AI and security increasingly influencing modernization plans," said Petra Goude, global practice leader for core enterprise and zCloud at Kyndryl.

"By working with partners on their mainframe modernization and AI journey, businesses can unlock new opportunities, enhance resiliency, mitigate skills challenges and drive better outcomes. This way, mainframes can continue to thrive and provide strong business value in hybrid environments."

Mainframe modernization efforts are delivering results

IT modernization projects and patterns are paying off, Kyndryl’s study noted, with one-year returns on investment (ROI) of between 114% and 225% and collective savings of $11.9 billion annually.

Collectively, survey respondents are saving $11.9 billion annually on their mainframe modernization initiatives.

But it's security that's the number one driver of mainframe modernization investments, thanks in large part to the need for regulatory compliance.

The skills gap, though, is holding organizations back, especially in new areas and technologies. More than a quarter revealed they still have significant skills shortages, especially in areas such as generative AI.

Similarly, security skills are in high demand due to increasing regulatory compliance requirements. As a result, around three-quarters of organizations are using external providers to deliver mainframe modernization projects.

Meanwhile, many organizations are struggling to gain enterprise-wide operational insights that can help them improve operations. While more than nine-in-ten said it’s important to have a single dashboard that operates across the hybrid environment, 85% stated they find it difficult to do this properly.