U.S. Enterprises Utilize GenAI for Mainframe Migration and Modernization

U.S. enterprises are turning to Generative Artificial Intelligence (AI) (GenAI) to facilitate the migration of mainframe workloads to the cloud and optimize legacy systems, according to a recent report from Information Services Group (ISG). The 2025 ISG Provider Lens™ report highlights the efficiency gains and cost reductions associated with Generative AI (GenAI) tools and their role in modernizing application software.

The research finds that while companies have not yet fully implemented GenAI applications on mainframes, they are leveraging GenAI capabilities to cut down on coding expenses and development timelines. John Schick, ISG consulting lead on mainframe computing, noted, “The functions that mainframes have always performed are still essential to many enterprises, and GenAI provides new ways to maximize their value. Service providers are using GenAI to open up new possibilities for clients.”

Companies are increasingly opting to reengineer mainframe software instead of simply migrating it to the cloud as they previously favored. This shift is driven by enhanced code inspection, documentation, and testing facilitated by GenAI, which allows for the production of more efficient software. As expectations evolve, enterprises are now more receptive to innovations that can add value beyond traditional legacy applications.

In Brazil, similar trends are emerging, particularly in sectors like banking, insurance, and retail. Banco Itaú Unibanco recently announced plans to migrate its systems to AWS by 2028, indicating a growing demand for modernization services in the region.

For organizations retaining their mainframes, GenAI is enhancing optimization services while many adopt DevOps practices, containers, and APIs. These approaches are important for integrating mainframe data into cloud environments and complying with new security and regulatory standards. Implementations of GenAI are helping accelerate the modernization of legacy code through improved code inspections.

The report also evaluates the capabilities of 54 mainframe service providers in the U.S. and Brazil, naming DXC Technology and Wipro as leaders across five quadrants each. Capgemini and Kyndryl follow closely as leaders in four quadrants, along with several others recognized in various segments, reflecting a diverse landscape of service options.

Overall, the findings underscore a marked shift in how enterprises approach mainframe application modernization, leveraging GenAI to navigate this complex landscape with greater agility and insight.