German firms urged to set AI 'no‑fly' zones and plan tailored mainframe upgrades

KPMG advises German companies to establish clear AI “no‑fly zones” where generative AI must not be used for ethical or security reasons. The firm recommends comprehensive governance throughout the AI system lifecycle, including standardized risk analyses, compliance checks, audit processes, transparency, data‑protection measures and defined oversight responsibilities.

In a separate webinar, the Mainframe Alliance – a coalition of PKS Software, Eurogroup Consulting and SEITCO QWICS Solutions – emphasized that while large‑language models and other AI tools can support analysis, documentation and code transformation of legacy mainframe environments, successful modernization requires firms to evaluate the business value and risks of each application and to choose appropriate paths such as retain, rehost, refactor, rebuild or replace, guided by experienced IT experts.