AI's Role in Enterprise Mainframe Modernization Plansai

The shift towards hybrid strategies is increasingly gaining momentum, with organizations leveraging generative AI to modernize their mainframes and maximize the value of critical data. An overwhelming majority of businesses—approximately 90%—are incorporating or intending to incorporate generative AI tools into their mainframe environments. This trend reflects an accelerated effort by enterprises towards modernization. 
 
In a recent survey conducted by Kyndryl, one-third of respondents acknowledged that mainframes have become integral in executing AI-enabled tasks. Almost half stated they aspire to utilize generative AI for transforming crucial mainframe data into actionable insights. 
 
Mainframe-stored data is becoming significantly valuable in powering new applications for generative AI. Moreover, this technology holds potential for shedding light on the complex architecture of monolithic applications. A CTO from a Brazilian insurance company cited as an example confirmed how they use generative AI for revealing "hidden patterns and insights" within the data, which facilitates informed decisions related to risk assessment, pricing, and target marketing campaigns. 
 
Petra Goude, Global Practice Leader for Core Enterprise & zCloud at Kyndryl, expressed her views on this evolving landscape: "Mainframes continue playing a pivotal role in the hybrid world while adapting themselves for newer use cases where factors such as security and artificial intelligence heavily influence modernization plans." 
 
She further emphasized that collaborating with partners on projects involving both mainframe modernization and artificial intelligence can unlock new opportunities, bolster resilience, address skills challenges, and drive better outcomes—thus ensuring continuous business value provided by mainframes within hybrid setups. 
 
Kyndryl's study also highlighted that IT modernization initiatives are proving beneficial, yielding returns on investment (ROI) ranging between 114% and 225%. Collectively, these efforts lead to savings amounting up to $11.9 billion annually from mainframe modernization endeavors alone. 
 
However, it’s worth noting that security remains the primary driver behind investments directed towards mainframe modernization, largely due to the necessity for regulatory compliance. A significant impediment faced by organizations is a skills gap, particularly in new areas and technologies. More than 25% of respondents confessed they still face substantial skills shortages, mainly in generative AI. 
 
Security skills are also in high demand given the increasing requirements for regulatory compliance. Consequently, approximately 75% of organizations rely on external service providers to execute mainframe modernization projects. 
 
While organizations struggle with gaining comprehensive operational insights that can enhance operations, over 90% agreed upon the importance of having a single dashboard functioning across hybrid environments. However, about 85% admitted facing challenges in effectively implementing this feature. 
 
In conclusion, as businesses increasingly shift towards hybrid strategies and leverage generative AI tools for mainframe modernizations, it's imperative that they address existing skill gaps while ensuring security and regulatory compliance.