Modernizing Legacy IT with AI Without Triggering Regulatory Risk
AI can accelerate the modernization of legacy IT systems, especially in regulated sectors with COBOL-based cores, but the main challenge lies in ensuring compliance and traceability to satisfy auditors and regulators. Key risks include undocumented business rules that AI may incorrectly interpret, leading to regulatory violations under frameworks like DORA, NIS2, and AI Regulation. Successful modernization requires thorough asset inventory, human validation of AI outputs, end-to-end traceability, strict data governance, and oversight of AI use to make transformations defensible and sustainable.








