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    Home»Machine Learning»Overcoming legacy tech through agentic AI | by QuantumBlack, AI by McKinsey | QuantumBlack, AI by McKinsey | May, 2025
    Machine Learning

    Overcoming legacy tech through agentic AI | by QuantumBlack, AI by McKinsey | QuantumBlack, AI by McKinsey | May, 2025

    FinanceStarGateBy FinanceStarGateMay 8, 2025No Comments5 Mins Read
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    Legacy know-how, outlined as outdated IT methods and {hardware} that’s nonetheless in use, has lengthy been a big difficulty dealing with companies worldwide. In truth, 70 percent of software utilized by FTSE 500 firms was created over 20 years in the past. The age of the know-how causes upkeep points due to an absence of standard updates and issue discovering employees with applicable skillsets. Outdated IT methods will be costly to maintain working and hinder know-how innovation. Modernization will be extremely complicated and will require lots of of engineers, multiyear timelines, and thousands and thousands of {dollars}.

    Enterprise challenges embody:

    • Sluggish tempo of innovation: Techniques constructed utilizing outdated and difficult-to-understand languages severely hinder a corporation’s skill to adapt and innovate as a result of new methods are constrained by the presence of legacy {hardware} and software program.
    • Restricted compatibility with trendy channels: Legacy know-how hardly ever integrates effectively with trendy methods that count on real-time information and superior connectivity.
    • Sluggish responsiveness to rules: The ever-evolving nature of laws turns into more durable and dearer to stick to with legacy know-how.
    • An unattractive prospect for high expertise: Programmers and software program engineers with the abilities required to handle legacy methods are usually approaching retirement, and newer generations are much less eager to handle these methods.

    QuantumBlack LegacyX simplifies course of modernization utilizing agentic AI, serving to organizations streamline and enhance workflows with superior know-how. It may be utilized in IT modernization initiatives to refactor current codebases as a part of broader know-how infrastructure transformation. McKinsey’s in depth expertise in IT transformation and course of modernization is enhanced by LegacyX to fast-track the achievement of measurable enterprise outcomes.

    LegacyX employs a variety of reuseable, specialized agents to deal with end-to-end workflows, specializing in deriving the intent of legacy methods to develop higher processes and speed up know-how stack updates. Agentic AI orchestrates autonomous squads of brokers chargeable for completely different roles that assess, design, and speed up engineering complicated know-how infrastructures alongside human subject material specialists.

    Every undertaking is constructed to align straight with the wants of the shopper, stitching collectively the mandatory elements, reminiscent of a ‘squad’ of certainly one of extra AI brokers, pushed by specific targets. This tiered multi-agent manufacturing facility framework automates complicated software program improvement flows, modernizing each processes and purposes concurrently.

    We acknowledge that no two know-how stacks are the identical, and neither are the targets of the companies that personal them. That is why organizations require a versatile, AI-driven framework that leverages AI brokers to automate and streamline updating IT methods. The alternate options are both off-the-shelf merchandise which are likely to assume one-size-fits-all, or struggling in silence whereas legacy know-how stacks develop into more and more inefficient.

    With agentic AI in your toolbox, you possibly can method modernization initiatives from a broader perspective than earlier, piecemeal methods.

    The next highlights how the mix of a ‘driver help’ and ‘self-driving’ gen AI method delivers the strongest attainable outcomes.

    Main firms are taking a holistic gen AI method to rework their legacy know-how property and meet enterprise aims.

    A profitable undertaking, incorporating each driver help and self-driving protocols, contains three key steps:

    1. Reverse engineer: Analyze and doc current enterprise processes and technical capabilities to determine any gaps that have to be addressed sooner or later.
    2. Form: Design the longer term state of enterprise processes and supporting applied sciences to permit organizations to evolve freely, with out being constrained by rigid methods.
    3. Modernize: Develop the codebase and alter administration plans essential to implement the future-state designs.

    The brand new code ought to be examined in opposition to the legacy code to ascertain productiveness features. That is made attainable by a multi-flow agent structure which automates complicated software program improvement processes.

    A multi-flow agent structure allows automation of complicated software program improvement flows.

    Case examine: A number one European aftermarket automotive participant

    A European roadside help firm relied on a 25-year-old legacy system, with solely two builders on the crew possessing in-depth data of its code. The system lacked transparency in its performance and embedded enterprise logic. In collaboration with McKinsey, the enterprise recognized that modernizing the IT methods may unlock over €35 million in worth.

    Over 5 weeks, McKinsey collaborated with the crew and used LegacyX to doc end-to-end system processes comprising roughly 300,000 traces of code. The method included these steps:

    • Positive-tune the agentic accelerators to adapt to coding types.
    • Present business-specific acronyms and context to the LLM.
    • Generate dependency maps and technical documentation to know how the code works.
    • Extract enterprise guidelines from the developer documentation to explain the code logic.
    • Extract interactions with different methods within the code to signify them simply.

    The five-week undertaking resulted in McKinsey extracting greater than 4,000 enterprise guidelines from the legacy code. The work recognized that 70 % of the code’s enterprise logic was concentrated in eight information and deprecated 30 % of the out of date features.

    Case examine: Public sector modernization

    A public-sector group, chargeable for managing 75 eligibility applications, was fighting a know-how stack written on COBOL that ran on a decades-old mainframe. The shopper labored with McKinsey to replace its enterprise guidelines from COBOL to a contemporary enterprise guidelines engine.

    The McKinsey crew carried out a six-week proof of idea undertaking on 250,000 traces of code, together with:

    • Reverse-engineering COBOL code into pure language documentation.
    • Leveraging command immediate engineering to refine the output of LegacyX.
    • Validating outputs in comparison with the COBOL code and current insurance policies.

    The crew projected a 75 % time saving, from two years to six-eight months, to determine and perceive all 3,000 eligibility enterprise guidelines. The extracted guidelines may then be exported into a contemporary enterprise guidelines engine to additional speed up future modernization initiatives.

    Legacy know-how considerably hinders the productiveness and success of organizations the world over. Many leaders are hesitant to interact in modernization initiatives, nevertheless, because of the excessive prices related and an absence of readability on return on funding. LegacyX is a proprietary agentic platform that makes use of the facility of generative AI to speed up modernization efforts with a low-cost barrier to entry.



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