AI-driven application modernization for federal agencies

In the age of instant everything, citizen expectations for government services are higher than ever before. According to the BCG 2024 Digital Government Citizen Survey, 77% of US survey respondents said that they expect digital government services to match or exceed the private sector digital services. The same survey found that 74% of users surveyed have faced problems accessing online US government services over the past two years.

Agencies feel pressure to modernize but often struggle to deliver the seamless experiences that citizens expect. The main obstacle? Legacy systems. Since many are decades old, it can be difficult to add new tools or fix problems quickly. These outdated systems impede innovation and prevent agencies from keeping pace with evolving citizen needs. 

To meet rising expectations and overcome legacy limitations, agencies need more than quick fixes; they need a strategic approach. Here, artificial intelligence (AI) and AI-driven application modernization play a key role. By rethinking how systems are built, maintained and scaled, agencies can clear a path to the cloud­—unlocking the flexibility, speed and innovation that today's digital services demand.

Modernization starts with a clear understanding of your current IT environment. Over time, many agencies have accumulated technical debt through short-term fixes. To move forward, agencies should step back and ask: What’s driving the need to modernize? What challenges are you solving? What’s standing in the way?

Here are common challenges that are prompting agencies to modernize:

• Mission delivery. Outdated technologies can block agencies from effectively serving citizens. Some agency departments must manage and analyze massive datasets, but legacy systems can’t keep up. These departments often require immediate modernization, even if broader modernization takes time.
• Compliance and security. New cybersecurity and privacy mandates are driving agencies to align with updated regulations. Cloud platforms often come with built-in compliance frameworks, which make it easier to build and meet authority to operate (ATO). For example, the Amazon Web Services (AWS) government cloud environment, AWS GovCloud, supports over 140 compliance frameworks, from HIPAA to FedRAMP, and offers a secure environment for top-secret data.
• Faster updates and innovations. Some agencies struggling with slow modernization cycles are turning to automated systems such as DevOps pipelines to streamline software development and deployment. Shifting from monthly to daily updates frees teams to focus on innovation instead of firefighting. 
• System resiliency. Persistent outages and patchwork fixes signal it’s time to modernize. Simply lifting legacy systems into the cloud won’t solve performance issues. These systems often need to be reconsidered, not just rehosted.

When agencies face multiple challenges, it can be tough to decide where to start. A smart first step is to focus on workloads that are impactful but relatively independent from other systems. Identifying early wins starts with a deep understanding of your current technology landscape, which is why the discovery phase is critical.

During discovery, we use tools such as CAST Highlight to help agencies assess the health and complexity of their applications within the broader system. This action helps pinpoint gaps, risks and opportunities. From there we layer in generative AI to evaluate workload suitability and cloud readiness and to recommend the most efficient modernization path for each application. Often, this AI-driven approach boosts migration efficiency up to 70%¹. 

Read the white paper: Put AI to work for federal application modernization with IBM and AWS

But success isn’t just about getting to the cloud, it’s about thriving once you’re there. For that reason, we also focus on Day 2 planning: how to run and maintain your modernized system post launch. A critical question that agencies must ask is, does my team have the skills to manage this?

At this stage, IBM Consulting® steps in again. We help automate routine tasks and simplify operations, reducing the burden on your team. These actions allow agencies to move forward confidently, even with lean teams or limited in-house expertise.

Modernizing government systems is no small feat, but the partnership between IBM and AWS makes it possible. With deep expertise in data migration and mainframe technology, IBM is one of the few partners trusted with the complexity of legacy systems. We also operate a dedicated, secure cloud environment with AWS GovCloud that can ensure privacy and protection at every level. 

Together, we bring innovations such as continuous ATO (cATO) and a DevSecOps approach to compliance. These innovations streamline the development process while maintaining the highest security standards, which means faster progress without compromising on trust.

Modernization isn’t a one-time project; it’s a continuous journey. The collaboration between IBM and AWS supports agencies every step of the way, from translating mainframe code to designing cloud environments tailored to each mission. The result? More automation, more personalization and systems built to scale securely for the future.