Beyond code conversion: An AI-led approach to modernization driving business outcomes

By Shawn D’Souza, SVP, Global Modernization Leader, Kyndryl Consult

As companies look to modernize their technology and reduce technical debt, they do so to increase business agility, lower costs, and address skills gaps in their workforces. Decades of critical business logic exist in their mission-critical systems, so they are turning to AI to help accelerate the process, as Anthropic described in a blog post yesterday.

To make the most of modernization projects, however, companies also need deep knowledge of how these systems function today along with a transformative vision for future business outcomes. Doing so will help them address not only their technology challenges, but create new competitive business capabilities in the future.

While 90% of leaders believe they have the tools and processes to scale innovation, more than half say their foundational tech stack holds them back, according to the latest Kyndryl Readiness Report. Technology leaders are demanding faster, nimbler approaches to modernization.

Code conversion can address some of those concerns, so capabilities like Claude Code’s are important and exciting for organizations looking to work more efficiently. Kyndryl already uses an AI-first approach to convert code to modern languages, generate comprehensive documentation, map dependencies and sequence activities to significantly reduce the time for code analysis. This approach applies across a broad range of modernization projects — for middleware, databases, mainframes, ERP, and industry core systems (e.g., banking, insurance or healthcare).

Beyond code conversion, deploying AI for modernization projects can deliver better business value while requiring fewer resources, with massively shorter timelines — about half the time compared to traditional modernization programs — and realizing unprecedented step‑change transformation.

Shawn D’Souza

SVP, Global Modernization Leader, Kyndryl Consult

Beyond code conversion, deploying AI for modernization projects can deliver better business value while requiring fewer resources, with massively shorter timelines — about half the time compared to traditional modernization programs — and realizing unprecedented step-change transformation. The blending of agentic AI into the modernization process allows for continuous modernization, keeping up with evolving technology and business priorities. So, you move faster and you stay relevant throughout.

To get truly transformational value from a modernization project, you have to go beyond code alone, and reimagine how a company’s skills, workflows, tools and governance are orchestrated and integrated for a future-ready state. It’s also not just about the internal processes. Organizations need to consider external risk factors, such as rising geopolitical tensions, regulation (and de-regulation) and the associated concerns around data and operational sovereignty.

These questions will force decisions for investments in cloud, modern data centers and networks, software, and hardware to sustain the future-ready enterprise. All in, whether looking at the internal or external factors in determining the modernization journey, people remain critical.

Our Kyndryl Agentic AI Framework — capturing our engineering background, outcome-focused methodology, unique IP and approach to integrating new, innovative technologies — positions us to drive committed business outcomes. We take a holistic approach to these questions and align on business outcomes at the start of each customer engagement. This agentic-first modernization approach captures and codifies technical, industry-specific inputs and external macro-level considerations so that we can execute for our customers with agents and humans. We bring the depth and breadth of our people — our experts — to the engagements to assess the output and to help execute on the precise strategic outcome originally envisioned. The approach also lets us scale what works: applying proven agents repeatedly to improve speed and cost efficiency for customers.

There is no one-size-fits-all and there is no single solution to an organization’s legacy challenges nor to its broader modernization journey. At Kyndryl, we fundamentally understand the importance of taking into account the full extent of a customer’s IT estate, with agents and people working together, to realize growth.

Shawn D’Souza

SVP, Global Modernization Leader, Kyndryl Consult