AI-Driven Application Modernization in Regulated Industries: Compliance, Security, and Risk Management
In highly regulated sectors such as financial services, healthcare, and insurance, the modernization of legacy applications is not just a technological upgrade—it is a business-critical imperative. These industries face unique and formidable challenges: stringent compliance requirements, heightened security expectations, and the constant need to manage risk. Publicis Sapient, in partnership with Google Cloud, delivers a proven, AI-powered approach to application modernization that addresses these complexities head-on—enabling organizations to modernize with confidence, speed, and measurable impact.
The Challenge: Modernizing in a Regulated World
Legacy systems in regulated industries are often deeply entrenched, supporting core business processes and storing sensitive data. Modernization efforts are complicated by:
- Complex compliance mandates (e.g., HIPAA, PCI DSS, SOX, GDPR)
- Security and privacy concerns around sensitive customer and patient data
- Risk of business disruption during migration
- Shortage of talent with expertise in both legacy and modern technologies
- Budgetary and time constraints
Traditional approaches—manual code migration, documentation, and testing—are slow, error-prone, and costly. They often fail to keep pace with regulatory changes and evolving cyber threats, leaving organizations exposed to operational inefficiencies, security risks, and potential regulatory penalties.
The Solution: AI-Driven Modernization with Publicis Sapient & Google Cloud
Publicis Sapient’s AI-driven platforms, including proprietary tools like
Sapient Slingshot and
Bodhi, transform the modernization journey for regulated industries:
1. Accelerated, Accurate Code Migration
Sapient Slingshot leverages proprietary AI agents and an extensive code library built on over 20 years of domain expertise. The platform can analyze, deconstruct, and translate legacy code (e.g., COBOL to Java) into modern architectures with remarkable speed and precision. The process includes:
- Automated code analysis and logic simplification
- Generation of program flow diagrams and requirements in behavior-driven development (BDD) format
- Creation of design documents (microservices, ER diagrams, sequence diagrams)
- Automated generation of modular code, unit tests, and API specifications
Outcome: Migration cycles are accelerated by 50–70%, with a 3x increase in speed reported in real-world engagements. Projects that once took years can now be completed in months or even weeks.
2. Automated Compliance Documentation
Regulatory alignment is built into the DNA of Sapient AI for Applications. The platform integrates with project management tools to:
- Pull context from existing requirements, regulations, and code
- Automatically generate and update compliance documentation
- Ensure traceability from requirements through to code and test cases
This automation reduces the manual burden on compliance teams and ensures documentation is always audit-ready and up to date with the latest regulatory changes.
3. Robust Security and Risk Management
Security and privacy are non-negotiable in regulated industries. Sapient Slingshot and Bodhi embed security best practices throughout the software development lifecycle:
- Automated code reviews and static analysis to identify vulnerabilities early
- Generation of comprehensive test cases, including for security and privacy controls
- Seamless integration with cloud and on-premise environments, ensuring data protection and compliance with industry standards
- Real-time assistance and documentation to support secure development and deployment
Outcome: Organizations benefit from a 50% reduction in software defects, including those related to security and compliance, and significantly expanded test coverage.
4. End-to-End Auditability and Traceability
Every step of the modernization journey is transparent and auditable. Sapient AI and Sapient Slingshot:
- Automatically generate comprehensive documentation at every stage, from requirements to deployment
- Create functional specifications and program flow diagrams that clarify logic and support regulatory review
- Enable traceability from legacy code to modern architecture, ensuring every change is mapped, reviewed, and signed off by stakeholders
- Produce dynamic reports and audit trails for all automated and manual interventions, supporting compliance with industry standards
5. Human-in-the-Loop for Regulatory Assurance
While AI accelerates and automates, Publicis Sapient’s approach always keeps human expertise at the center. Domain experts review, enhance, and sign off on requirements, designs, and code, ensuring that every modernization effort meets both business and regulatory expectations.
Measurable Outcomes
Organizations partnering with Publicis Sapient and Google Cloud for AI-driven modernization realize tangible business benefits:
- Over 50% reduction in modernization costs
- 50–70% increase in migration speed
- 50% fewer defects, with expanded coverage of requirements and test cases
- 3x faster migration and reduced effort in real-world client engagements
- Improved traceability and auditability for compliance
Real-World Impact: Success in Regulated Industries
A leading benefits provider in the healthcare sector partnered with Publicis Sapient to modernize legacy mainframe applications. By leveraging private AI models and iterative development, the organization achieved:
- 3x faster migration
- Functional specifications that improved traceability and quality
- Code that is easier to maintain and enhance in a modern tech stack
Across financial services, healthcare, and insurance, organizations are realizing the benefits of AI-driven modernization—without compromising on compliance, security, or risk management.
Why Publicis Sapient?
Publicis Sapient brings together deep industry knowledge, digital transformation expertise, and leadership in generative AI. Our end-to-end capabilities—from strategy to implementation—are trusted by global organizations to deliver:
- Enterprise-scale AI solutions tailored for regulated environments
- Partnerships with leading cloud providers to ensure secure, compliant modernization
- A culture of ethical, responsible AI that puts compliance and security first
Ready to Modernize with Confidence?
Modernizing legacy systems in regulated industries no longer needs to be a high-risk, high-cost endeavor. With Sapient AI for Applications, Sapient Slingshot, and Bodhi, Publicis Sapient empowers organizations to accelerate transformation, automate compliance, and strengthen security—while maintaining unwavering regulatory alignment.
Connect with our experts to see how AI-driven modernization can future-proof your business and unlock new value in even the most regulated environments.