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Can Legacy VSAM Data Power AI Initiatives Without a Full Migration?

Eran Galily

VSAM files and COBOL copybooks don't have to block AI adoption. Learn how banks and insurers can augment legacy mainframe data for RAG and AI, without migration risk.

Yes, VSAM files can feed AI systems like RAG pipelines and LLM-based agents through data virtualization and API exposure, without moving the underlying records off the mainframe. The core idea is to leave the system of record in place and add a translation and access layer on top of it, rather than treating "AI-ready" as synonymous with "migrated."

This matters because most banks and insurers have already made a bet on caution over speed. According to Celent's 2025 IT Spending in Banking report, roughly 72% of global banking IT budgets go toward maintaining existing legacy systems, leaving comparatively little room for large-scale replacement projects. Rewriting or migrating core systems that process this much daily transaction volume carries real operational risk, so the practical question for most institutions isn't "should we migrate," it's "can we get value from this data as it sits today."

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