How Kyndryl’s AI Powers a US$33bn Impact on Mainframe Use
Kyndryl’s third annual State of Mainframe Modernization Survey has dropped, showing how enterprises use modernisation to accelerate AI adoption and boost hybrid IT strategies.
The 2025 study surveyed 500 senior IT and business leaders globally, revealing mainframe modernisation projects now generate between 288% and 362% return on ROI.
This surge outpaces past years as organisations increasingly deploy agile modernisation frameworks combined with AI technologies.
The survey highlights a key evolution, that the mainframe is no longer a legacy bottleneck but a central AI engine embedded in hybrid IT environments.
- 288% to 362% ROI: Organisations report this range of return on investment from mainframe modernisation projects, depending on whether they modernise on the mainframe, integrate with cloud or move workloads to other platforms
- Nearly 90% of organisations have implemented or plan to implement Gen AI on mainframes, driving transformational business outcomes
- US$13bn in cost savings is expected from the use of AI and Gen AI on mainframes over the next three years
- US$20bn in new revenue is forecasted to be generated over three years from AI-powered mainframe workloads
- 80% of organisations have shifted their mainframe modernisation strategies in the past year to adapt to changing market dynamics, regulations and emerging technologies
Nearly 90% of respondents have adopted or plan to adopt Gen AI on mainframes, driving operational efficiencies and revenue growth.
As a result, businesses forecast US$13bn in AI-enabled cost savings and US$20bn in new revenues over the next three years, underscoring mainframe modernisation as a crucial catalyst for digital innovation.
How AI is transforming the mainframe market
Kyndryl’s findings show that AI integration is shifting from theoretical to transformative.
It finds that organisations are embedding Gen AI models into the mainframe ecosystem, enabling faster data processing and intelligent automation of core workloads – helping tackle workforce skill shortages, a longstanding challenge in mainframe environments, by augmenting human capabilities and creating new, high-value roles.
More than half of the surveyed companies reported increased mainframe usage in 2024, aligned with broader digital transformation initiatives.
AI-powered automation not only streamlines operations but also enhances security and regulatory compliance – an ever-growing priority, with 94% citing compliance as a major influence on modernisation strategies.
“The mainframe has become the AI-fueled catalyst of hybrid enterprise strategies, delivering billion-dollar returns while powering innovation for customers,” says Hassan Zamat, Global Practice Leader for Core Enterprise at Kyndryl.
“Organisations are taking a much more pragmatic approach to modernisation to drive better business outcomes and incorporate new technologies.
“Working with the right partners can help them build a resilient and future-ready platform.”
Kyndryl’s workforce and partner ecosystem challenges
Despite modernisation success, Kyndryl finds 70% of enterprises face difficulties sourcing talent skilled in both mainframe technologies and contemporary IT fields such as AI, cloud and cybersecurity.
This gap drives increased reliance on third-party providers for modernisation projects – with 74% of organisations saying they continue to engage external experts.
Partner ecosystems remain vital to accelerating modernisation outcomes and ensuring resilient hybrid IT infrastructures.
Security and compliance remain foundational drivers of mainframe modernisation as regulatory landscapes grow more complex, Kyndryl says.
It adds that enterprises focus on protecting mission-critical workloads real-time, with modernisation programmes tightly coupling risk management and governance frameworks.
Powering a hybrid future
The survey confirms the mainframe’s continued importance as a backbone of enterprise IT, embedded within hybrid architectures spanning on-premises, cloud and AI workloads.
With modernisation projects delivering triple-digit ROI and AI unlocking billions in top-line and cost savings, the mainframe is positioned as a key asset for companies navigating digital disruption, geopolitical uncertainties and rapid technology evolution.
