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