Many large organizations struggle with outdated digital systems, which can slow innovation. About 70 percent of software in Fortune 500 companies is over 20 years old. Modernizing these systems is complex and costly, often needing extensive engineering and time. McKinsey’s QuantumBlack has introduced LegacyX, an innovative platform that utilizes generative and agentic AI to simplify and speed up the modernization process by up to 80 percent while cutting costs. This technology helps optimize business processes and integrate them seamlessly with new systems. Agentic AI can create specialized teams to handle various tasks in real time, making tech upgrades faster and accessible to non-technical users, ultimately transforming how organizations operate.
March 20, 2025 – The Challenge of Aging Digital Systems in Organizations
In many large organizations, outdated digital infrastructure is a significant hurdle, often hindering innovation and adaptability. Remarkably, around 70 percent of the software used by Fortune 500 companies was developed over 20 years ago. Modernizing these legacy systems can be a daunting task, requiring extensive resources, skilled engineers, and considerable financial investment, often resulting in delays and increased risks.
Accompanying this challenge is the complex web of business processes intertwined with these older systems. Over years, these processes have been designed to fit the existing technology, necessitating substantial re-engineering to integrate with newer platforms. This re-engineering adds another layer of complexity, intensifying the risks associated with any transformation journey.
The introduction of LegacyX by QuantumBlack, a division of McKinsey, aims to tackle these challenges head-on. This proprietary platform leverages the capabilities of generative and agentic AI to speed up modernization efforts by up to 80 percent while also significantly cutting costs. LegacyX doesn’t just enhance technology; it also streamlines business processes, ensuring a smoother transition into modern infrastructure.
One of the standout features of agentic AI lies in its ability to organize autonomous teams of specialized agents that can assess, update, and build complex technology systems in real-time. This represents a significant evolution from traditional AI, making modernization not only feasible but also efficient.
In a recent partnership with a multinational bank, McKinsey showcased the capabilities of LegacyX. The bank was attempting to convert over 100 outdated risk models from SAS to Python manually. By deploying LegacyX, the team was able to create squads of AI agents, each focused on specific roles like data engineering and coding. The outcome? An impressive 80 percent reduction in project timelines while actively involving human developers in the process.
Beyond coding, McKinsey aims to democratize AI, making its capabilities accessible to all employees, not just technical experts. In their experiments, even business analysts without coding skills successfully utilized the platform to create agent squads for data tasks. This highlights the transformative potential of agentic AI as a productivity tool for whole organizations.
LegacyX represents a shift toward smarter, faster modernization that not only revitalizes outdated systems but also empowers teams throughout an organization. McKinsey emphasizes that their strategy is more than just about technology; it’s about creating strong human-led, AI-powered solutions for meaningful business transformation.
Tags: Legacy systems, AI modernization, QuantumBlack, agentic AI, technology transformation
What does rejuvenating legacy infrastructure with agentic AI mean?
It means updating old systems and technologies using smart AI tools that can make decisions on their own. This helps improve efficiency and keeps everything running smoothly.
How can agentic AI benefit my business?
Agentic AI can save time and reduce costs by automating tasks. It can also help make better decisions by analyzing data quickly and accurately, leading to improved performance.
Is it expensive to implement agentic AI in existing infrastructure?
The cost can vary widely depending on your current systems and what you want to achieve. However, many businesses find that the long-term savings and benefits outweigh the initial investment.
What types of legacy infrastructure can benefit from agentic AI?
Agentic AI can be applied to many types of old systems, including IT networks, manufacturing processes, and customer service platforms. Almost any outdated technology can be improved with smart AI solutions.
How long does it take to see results from using agentic AI?
Results can vary, but many businesses start to notice improvements within a few months. The timeline often depends on the complexity of your systems and how quickly you can implement the AI solutions.