European companies adapting mainframe systems are moving from experimental to operational use of generative AI (GenAI) within standardized workflows, integrating it in key stages of modernization, according to a new research report published today by Information Services Group (ISG), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens Mainframes — Services and Solutions report for Europe finds that enterprises are deploying AI-driven workflows built on deterministic engines to coordinate multiple tasks, including analysis, rule explanation, test creation and scaffolding. GenAI enhances existing modernization tools by speeding up analysis and planning while maintaining accuracy through verification.

“Enterprises increasingly expect explainable, production-grade and well-controlled AI within mainframe modernization processes,” said Matthias Paletta, director and ISG technology modernization solution lead for EMEA. “Providers that demonstrate repeatable, auditable GenAI capabilities are gaining credibility as organizations prioritize AI governance and integration.”

Mainframe modernization in Europe has entered a phase in which data sovereignty and regulatory demands are directly shaping how organizations carry out modernization. Enterprises demand clear, evidence-based assurances on where data is stored, how workloads are run and who can access and control encryption keys. They increasingly expect AI platforms and tools to operate in secure, isolated environments.

European organizations are moving away from large, one-time mainframe replacements toward gradual, carefully managed modernization programs to reduce risk, maintain compliance and accommodate limited skills and capacity. Providers are adopting a two-track approach that separates deterministic modernization, such as optimization and refactoring, from targeted transformation initiatives. This enables enterprises to modernize their mainframe environments incrementally while keeping core systems stable and avoiding disruptions caused by the scarcity of specialist skills.

While increasingly using GenAI in mainframe modernization, European enterprises are still taking a cautious approach, especially in critical systems. Rather than relying on fully automated AI-led changes, they are incorporating human review at key stages, along with clear records of decisions and thorough testing. This approach helps reduce risks and maintain accuracy. As a result, GenAI is increasingly used to support engineers and speed up work, while final decisions and accountability remain firmly with human teams.

“European enterprises are reshaping mainframe modernization around governance, stability and accountability,” said Oliver Nickels, lead author of the report. “Success depends on disciplined, risk-managed execution and transparent operations rather than rapid, large-scale change.”

The report also explores other mainframe technology trends affecting European enterprises, including reliance on hyperscalers to adapt to regional regulations and enterprises’ growing need for end-to-end alignment across consulting, modernization and managed operations.

To learn more, visit: www.isg-one.com

European Firms Deploy GenAI in Mainframe Modernization – ISG – May 19, 2026.

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