Unleashing the Power of GenAI: Optimizing Legacy Code Migration in the Banking Industry

The banking industry, known for its stability, security, and trustworthiness, is facing a unique challenge in the form of legacy code as technology continues to advance rapidly. Outdated systems built on antiquated technologies are hindering innovation and efficiency in banks, according to a report from McKinsey [1]. To thrive in today's digital age where transformation is crucial, finding an optimal solution for migrating legacy code has become imperative. Within the banking sector, one such solution that has gained considerable traction is GenAI or Genetic Artificial Intelligence. These cutting-edge technology harnesses the power of genetic algorithms and artificial intelligence to streamline the migration process of legacy code. Among its various approaches to code migration is the use of code translation. Traditionally, code migration has been a labour-intensive and time-consuming task. [2]

What is Generative AI? Why does it matter?

Generative AI is a type of artificial intelligence technology that utilizes genetic algorithms and deep learning techniques to automate the migration of legacy code. Using code translation, Generative AI enables developers to quickly translate existing code from one language to another, or even from one platform to another. This helps reduce the amount of time and effort required for manual conversion, as well as drastically improve the accuracy of the end result. [3]

In addition, the technology can also identify flaws in legacy code that could potentially lead to security and other concerns. Moreover, Generative AI helps developers understand existing codebase better by providing detailed insights into how it works. This allows developers to make informed decisions while making changes or building upon existing codebase. The banking sector should prioritize leveraging Generative AI in order to remain competitive in a digital world. [4]

To effectively navigate the rapidly evolving digital landscape, banks must carefully evaluate their strategies for optimizing the migration of legacy code. One notable solution that has garnered industry attention is GenAI - Genetic Artificial Intelligence. This advanced technology combines genetic algorithms with artificial intelligence to provide innovative approaches for code migration and modernization. Code translation is one of the key techniques employed by GenAI in the banking industry. [5]

What is Legacy Code?

Legacy code in the context of banking is software code that has been developed for an older version of a system and is now out-of-date and potentially incompatible with newer versions. This type of code is typically difficult to maintain, as it may contain outdated programming languages, libraries, or frameworks. Legacy code can also be difficult to modify or extend, due to its aging architecture and platform dependencies. Legacy code migration involves transferring this code from one platform or language to another, in order to keep the system up-to-date and ensure its continued functionality. Legacy code migration is often a tedious and time-consuming process, but it is essential for ensuring a bank’s continued competitiveness in the digital age. [6]

What are some GenAI strategies for Legacy Code Migration?

With GenAI’s different strategies available for code translation and optimization processes related to legacy systems can potentially be streamlined more effectively than before.

Legacy code refers to the software programs and systems that have been in use for a considerable period, typically developed using older programming languages and frameworks. These systems were once innovative solutions, but as time has passed, they have become challenging to work with and impede banks' ability to keep up with evolving customer demands and market dynamics. The intricate nature of legacy code makes it risky and arduous to replace or upgrade, resulting in constrained flexibility for banks along with increased maintenance expenses. [7]

Despite the problems introduced by legacy systems, the banking industry still heavily relies an innovative technology that revolutionizes legacy code migration in the banking industry. With the integration of artificial intelligence and machine learning, GenAI provides a cutting-edge solution to streamline and optimize the migration process. This transformative approach turns what was once seen as a daunting challenge into a strategic opportunity for banks seeking to unlock their true potential.

The benefits of embracing GenAI in legacy code migration are multifold. Firstly, it enables banks to streamline and automate the entire migration process, reducing the time, effort, and costs associated with manual code rewrites. Through advanced algorithms and intelligent automation, GenAI can analyze the existing codebase, identify dependencies, and generate optimized code for modern platforms. This not only accelerates the migration process but also ensures a more accurate and error-free transition. [3]

Moreover, GenAI brings with it the ability to enhance the performance and scalability of legacy systems. By intelligently rearchitecting and optimizing the code, banks can leverage the latest technologies and frameworks to create more robust, scalable, and responsive applications. This not only improves the overall customer experience but also empowers banks to rapidly deploy new features and services, gaining a competitive edge in the market.

Another key advantage of GenAI in legacy code migration is the potential for cost savings. Research suggests that the value potential of optimizing legacy code migration in the banking sector ranges from $200 to $340 billion, equivalent to 3-5% of operating profits. [8]By reducing the time and effort required for migration, banks can redirect valuable resources towards innovation, customer-centric initiatives, and business growth. This cost optimization also extends to the maintenance phase, as GenAI-generated code is often more efficient and easier to maintain, resulting in long-term savings.

In addition to the tangible benefits, GenAI offers invaluable insights that can drive strategic decision-making and future-proof banks' IT landscapes. Through its analysis of legacy code, GenAI can uncover hidden patterns, identify areas of potential risk, and highlight opportunities for optimization. These insights not only inform the migration process but also pave the way for a more data-driven and agile approach to software development within the banking industry.

Datasumi, a leading data and digital consultancy, stands at the forefront of revolutionizing legacy code migration with the power of GenAI. With its expertise in data analysis, artificial intelligence, and software engineering, Datasumi offers a comprehensive suite of services tailored to meet the unique needs of banks in their migration journey.

Datasumi's approach begins with a thorough assessment of the existing codebase, identifying pain points and areas of improvement. Leveraging advanced algorithms, Datasumi's team of experts utilizes GenAI to generate optimized code, ensuring a seamless transition to modern platforms. Throughout the migration process, Datasumi provides continuous support, closely monitoring performance, and addressing any challenges that may arise.

Furthermore, Datasumi [9] goes beyond code migration, helping banks maximize the value of GenAI by offering ongoing support in performance optimization, scalability, and innovation. By partnering with Datasumi, banks gain access to a wealth of knowledge and experience, enabling them to leverage GenAI to its fullest potential and drive their digital transformation initiatives forward.

In conclusion, the migration of legacy code has become a critical concern for the banking industry as it strives to keep pace with evolving customer expectations and technological advancements. GenAI presents a game-changing solution that offers numerous benefits, ranging from cost savings and improved efficiency to enhanced scalability and invaluable insights. Embracing the power of GenAI is not just a necessity but a strategic imperative for banks to remain competitive, agile, and future-ready in the ever-evolving world of banking.

Frequently Asked Questions

What is generative AI?

Generative AI refers to a subset of artificial intelligence models that can create new content based on the data they have been trained on. These models can generate text, images, music, and even code. They differ from discriminative models, which are designed to differentiate between different types of data, but not to generate new data. [10]

How does generative AI work?

Generative AI models like GANs (Generative Adversarial Networks) or LSTM-based models work by learning the patterns and features of the training data and then using that knowledge to create new, similar content. Typically, these models consist of neural networks trained on large datasets. Once trained, the model takes an input, such as a prompt or seed data, and generates output that is statistically similar to the training data. [11]

Why does generative AI matter?

Generative AI matters because it opens up new possibilities in automation, content creation, and data analysis. It can be used for generating realistic images for virtual environments, creating text for chatbots, or even for generating code. Its applications are wide-ranging, from entertainment to scientific research, and it holds the potential to revolutionize many industries. [12]

What is a legacy system?

A legacy system is an old technology, software, or hardware that is still in use, even though newer, more efficient systems are available. These systems are often difficult to update, integrate with newer technologies, or are lacking in features compared to modern alternatives. [13]

What is a migration of legacy systems?

Migration of legacy systems refers to the process of transferring data, operations, and functionalities from an older system to a new, more modern system. This is often done to improve performance, security, or to enable new functionalities that the old system was incapable of supporting.

What is legacy code?

Legacy code is source code that relates to a no-longer-maintained or a seldom-updated software system. Although it is still functional, it may be inefficient, poorly documented, or difficult to maintain or extend. [4]

What is a monolithic application?

A monolithic application is a software structure where all components are interconnected and interdependent. In this architecture, different functionalities are not modular but are part of a single, unified system. [14]

What are the benefits of monolithic applications?

Monolithic applications are generally easier to develop and deploy, especially for small to medium-sized projects, because all the components are part of a single codebase. This makes development, testing, and debugging simpler, as there are fewer moving parts to consider.

What are the disadvantages of monolithic applications?

Monolithic applications can become increasingly complex and difficult to maintain as they grow. Scaling specific functionalities can be challenging, as the entire application must often be scaled rather than individual components. This can lead to inefficiencies and increased costs.

What are the benefits of microservices?

Microservices offer better scalability and easier maintenance by breaking down an application into smaller, independent services. Each service can be developed, deployed, and scaled independently, making the system more flexible and easier to manage.

What are the disadvantages of microservices?

Microservices can introduce complexity in terms of service coordination and data consistency. They often require more resources for managing the distributed system, and the system architecture can become complicated, making development and deployment more challenging.

Will your service be created or maintained by another team?

I'm a machine learning model and do not have the capability to create or maintain services.

Will your service be in a different programming language?

As a machine learning model, I do not have the capability to exist in different programming languages or manage services in that context.

Will your service need to stay up if other functionality in your system goes down?

I am not a service; rather, I am a machine learning model running on distributed servers managed by OpenAI.

Will your service need to be scaled independently of other parts of your system?

As I am not a service, I do not have the ability to be scaled independently or otherwise.

How do you convert monolithic systems to microservices?

Converting monolithic systems to microservices involves breaking down the monolithic application into smaller, independent services. This usually involves identifying modules or functionalities that can operate independently, and then separating them into individual services. Each new service is then developed, tested, and deployed independently.

Should you build microservices from the outset?

Whether to build microservices from the outset depends on the project requirements, the complexity, and the scalability needs. For small projects with limited scope, a monolithic architecture might be more appropriate. However, if scalability and flexibility are important, starting with a microservices architecture could be beneficial.

Why migrate legacy applications?

Migrating legacy applications is often necessary for improving performance, security, and scalability. It also enables integration with modern technologies and can result in cost savings over time, as modern systems are generally more efficient and easier to maintain.

How can OpenLegacy help your legacy system application migration?

OpenLegacy specializes in speeding up the process of integrating legacy systems with newer technologies. It provides a platform that can automatically generate APIs from legacy systems, making it easier to extend their functionalities or integrate them with modern applications.

How do I migrate legacy systems?

Migrating legacy systems usually involves a careful assessment of the current system, planning for data migration, and selection of the new system where the data and functionalities will be transferred. The process typically includes setting up the new system, migrating the data, testing to ensure all functionalities have been transferred accurately, and finally, decommissioning the old system.

What is a legacy system conversion?

A legacy system conversion refers to the process of converting an old system into a new format or technology. This usually involves migrating data and functionalities and may require re-engineering software components to be compatible with modern technologies.

What are examples of legacy applications?

Examples of legacy applications include old versions of customer relationship management (CRM) software, enterprise resource planning (ERP) systems that are no longer updated, and outdated database management systems. These are often built using old technologies and are not compatible with modern systems without significant modification or migration.

Additional Resources

• Generative AI – What is it and How Does it Work? - Generative AI enables users to quickly generate new content based on a variety of inputs. Learn all about the benefits, applications, challenges & more.. (nvidia.com)

• What is Generative AI? Everything You Need to Know - Generative AI is a type of artificial intelligence technology that can produce various types of content. Find out how it works and why it's a hot commodity.. (techtarget.com)

• Google Generative AI – Google AI - Explore how teams at Google are using AI to create innovative new products and services.. (ai.google)

• What is ChatGPT, DALL-E, and generative AI? | McKinsey - Generative artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. Recent breakthroughs in the field have the potential to drastically change the way we approach content creation.. (mckinsey.com)

• Generative AI: What Is It, Tools, Models, Applications and Use Cases - Generative AI is a type of AI (such as ChatGPT) that can generate new forms of creative content, such as audio, code, images, text, simulations and videos.. (gartner.com)

• What is generative AI? | IBM Research Blog - Everyone is talking about LLMs and generative AI these days. Here's why.. (ibm.com)

• What is generative AI and what are its applications? | Google Cloud - Generative AI is a category of artificial intelligence that can create new text, images, video, audio, or code. Learn how it works with Google Cloud.. (google.com)

• Generative AI - Generative AI - Complete Online Course. (generativeai.net)

• What is generative AI and why is it so popular? Here's everything you need to know | ZDNET - Generative AI is a hot topic right now, but what actually is it? We have the answers.. (zdnet.com)

• What is Generative AI and How Does it Impact Businesses? | BCG - Generative artificial intelligence is a form of AI that uses deep learning and GANs for content creation. Learn how it can disrupt or benefit businesses.. (bcg.com)

• What is generative AI? A Google expert explains. - A Google AI expert answers common questions about generative AI, large language models, machine learning and more.. (blog.google)

• Generative AI Defined: How It Works, Benefits and Dangers - What is generative AI in simple terms, and how does it work? Discover the meaning, benefits and dangers of generative AI with our guide.. (techrepublic.com)

• Generative AI-nxiety - The cacophony of alarms around generative AI has left leaders disoriented and concerned, particularly given that generative AI is available to everyone within their organizations, not just data scientists. There are at least four cross-industry risks that organizations need to get a handle on: the hallucination problem, the deliberation problem, the sleazy salesperson problem, and the problem of shared responsibility. Understanding these risks in detail can help companies plan how they want to address them.. (hbr.org)

• Generative AI – Innovate Faster with Foundation Models - AWS - Find out what's new with generative AI and how you can innovate faster with a choice of foundation modes, enterprise-grade security and privacy, and the most cost effective infrastructure with AWS.. (amazon.com)

• What is generative AI? Artificial intelligence that creates | InfoWorld - Generative AI models can carry on conversations, answer questions, write stories, produce source code, and create images and videos of almost any description. Here's how generative AI works, how it's being used, and why it’s more limited than you might think.. (infoworld.com)

• What is Generative AI? Artificial intelligence explains | World Economic Forum - Generative AI is a category of AI algorithms that generate new outputs based on training data, using generative adversarial networks to create new content. (weforum.org)

• Amazon One palm scanning is trained by generative AI - No wallet, no phone, no problem. A neural network learned from images of millions of artificial hands to achieve accuracy higher than scanning two irises.. (aboutamazon.com)

References

[1] McKinsey & Company | LinkedIn. [Online]. Available: https://www.linkedin.com/company/mckinsey

[2] Adoption of Artificial Intelligence and Cutting-Edge Technologies for ... [Online]. Available: https://link.springer.com/article/10.1007/s10796-022-10317-x

[3] Generative AI: What Is It, Tools, Models, Applications and Use Cases. [Online]. Available: https://www.gartner.com/en/topics/generative-ai

[4] Legacy code: definition, problems, and practices - IONOS. [Online]. Available: https://www.ionos.com/digitalguide/websites/web-development/what-is-legacy-code/

[5] Banking Technology Trends 2021 | Tech Vision | Accenture. [Online]. Available: https://www.accenture.com/us-en/insights/banking/technology-vision-banking-2021

[6] What Is Legacy Code and Why Is it Bad? - SAP PRESS. [Online]. Available: https://blog.sap-press.com/what-is-legacy-code-and-why-is-it-bad

[7] What is a Legacy System and Why Are They in Use? [Online]. Available: https://blog.dreamfactory.com/what-is-a-legacy-system/

[8] The Aging IT Workforce and Legacy Application Modernization - Deloitte US. [Online]. Available: https://www2.deloitte.com/us/en/pages/technology/articles/aging-workforce-legacy-application-modernization.html

[9] Datasumi - LinkedIn. [Online]. Available: https://uk.linkedin.com/company/datasumilimited

[10] What is generative AI? Everything you need to know - TechTarget. [Online]. Available: https://www.techtarget.com/searchenterpriseai/definition/generative-AI

[11] Generative Adversarial Networks (GANs) in networking: A ... - ScienceDirect. [Online]. Available: https://www.sciencedirect.com/science/article/pii/S1389128621002139

[12] The Generative AI Revolution Is Creating The Next Phase Of ... - Forbes. [Online]. Available: https://www.forbes.com/sites/markminevich/2023/01/29/the-generative-ai-revolution-is-creating-the-next-phase-of-autonomous-enterprise/

[13] What is a Legacy System? - Entrance. [Online]. Available: https://entranceconsulting.com/what-is-legacy-system-and-legacy-software/

[14] What Is a Monolithic Application? (Definition, Benefits) - Built In. [Online]. Available: https://builtin.com/software-engineering-perspectives/monolithic-application