Why are banks facing a COBOL crisis?

The number of COBOL programmers is declining, making maintenance and upgrades difficult and costly.

How can AI help solve the COBOL crisis?

AI can translate and analyze COBOL code to ease migration to modern systems, but it's not a perfect solution.

What is IBM's role in this?

IBM offers AI-powered solutions to help banks modernize their legacy systems, including COBOL.

The Translation Trap: Why AI Won't Solve the COBOL Crisis

Although many banks still run decades-old platforms, Claudio González argues that AI can make a bigger difference than most realize by finally decoding these legacy systems.

June 9, 2026

2 min read

Source: Retail Banker International

Although many banks still run decades-old platforms, Claudio González argues that AI can make a bigger difference than most realize, by using it to finally decode these legacy systems.

Details

Banks worldwide continue to rely on legacy COBOL systems running on mainframes. Some of these systems date back to the 1960s, posing significant maintenance and upgrade challenges due to the scarcity of COBOL programmers.

González suggests using AI to translate and analyze COBOL code, potentially easing the transition to modern systems. However, he warns that such translation is not straightforward and could introduce errors if not executed precisely.

Context

These remarks come as banks seek to upgrade their digital infrastructure to meet regulatory and competitive demands. Companies like IBM (ticker: IBM) offer AI-powered solutions to assist in this transformation.

What It Means for Investors

For investors, legacy system modernization presents opportunities for tech companies like IBM, but also risks related to implementation costs and potential operational errors. This area warrants close monitoring.

Frequently Asked Questions

COBOL is an old programming language developed in the 1950s, still used in banking and government systems.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.