
As digital transformation accelerates, modernizing legacy applications has become essential for businesses to stay competitive. The application modernization market size, valued at USD 21.32 billion in 2023 , is projected to reach USD 74.63 billion by 2031 (1), reflecting the growing importance of updating outdated systems.
With 94% of business executives viewing AI as key to future success and 76% increasing their investments in Generative AI due to its proven value (2), it's clear that AI is becoming a critical driver of innovation. One key area where AI is making a significant impact is application modernization - an essential step for businesses aiming to improve scalability, performance, and efficiency.
Based on two projects conducted by our R&D team , we've seen firsthand how Generative AI can streamline the process of rewriting legacy systems.
Let’s start by discussing the importance of rewriting legacy systems and how GenAI-driven solutions are transforming this process.
In the rapidly evolving software development landscape, keeping applications up-to-date with the latest programming languages and technologies is crucial. Rewriting applications to new languages and frameworks can significantly enhance performance, security, and maintainability. However, this process is often labor-intensive and prone to human error.
Generative AI offers a transformative approach to code translation by:
As businesses strive to stay competitive, adopting Generative AI for code translation becomes increasingly important. It enables them to harness the full potential of modern technologies while minimizing risks associated with manual rewrites.
Legacy systems, often built on outdated technologies, pose significant challenges in terms of maintenance and scalability. Modernizing legacy applications with Generative AI provides a viable solution for rewriting these systems into modern programming languages, thereby extending their lifespan and improving their integration with contemporary software ecosystems.
This automated approach not only preserves core functionality but also enhances performance and security, making it easier for organizations to adapt to changing technological landscapes without the need for extensive manual intervention.
Generative AI offers a powerful solution for rewriting applications, providing several key benefits that streamline the modernization process.
Modernizing legacy applications with Generative AI proves especially beneficial in this context for the following reasons:
By leveraging Generative AI, organizations can achieve a smooth transition to modern system architectures, ensuring substantial returns in performance, scalability, and maintenance costs.
In this article, we will explore:
For these case studies, we used OpenAI's ChatGPT-4 with a context of 32k tokens to automate the rewriting process, demonstrating its advanced capabilities in understanding and generating code across different application architectures.
We'll also present the benefits of using a data analytics platform designed by Grape Up's experts. The platform utilizes Generative AI and neural graphs to enhance its data analysis capabilities, particularly in data integration, analytics, visualization, and insights automation.
The source CRUD project was used as an example of a simple CRUD application - one written utilizing .Net Core as a framework, Entity Framework Core for the ORM, and SQL Server for a relational database. The target project containes a backend application created using Java 17 and Spring Boot 3.
Rewriting a simple CRUD application using Generative AI involves a series of methodical steps to ensure a smooth transition from the old codebase to the new one. Below are the key actions undertaken during this process:
Throughout each step, some manual intervention by developers was required to address code errors, compilation issues, and other problems encountered after using OpenAI's tools.
The first stage in rewriting a simple CRUD application using Generative AI is to conduct a thorough investigation of the existing architecture and data flow. This foundational step is crucial for understanding the current system's structure, dependencies, and business logic.
This involved:
While OpenAI's ChatGPT-4 is powerful, it has some limitations when dealing with large inputs or generating comprehensive explanations of entire projects. For example:
However, OpenAI excels at explaining large pieces of code or individual components. This capability aids in understanding the responsibilities of different components and their data flows. Despite this, developers had to conduct detailed investigations and analyses manually to ensure a complete and accurate understanding of the existing system.
This is the point at which we used our data analytics platform. In comparison to OpenAI, it focuses on data analysis. It's especially useful for analyzing data flows and project architecture, particularly thanks to its ability to process and visualize complex datasets. While it does not directly analyze source code, it can provide valuable insights into how data moves through a system and how different components interact.
Moreover, the platform excels at visualizing and analyzing data flows within your application. This can help identify inefficiencies, bottlenecks, and opportunities for optimization in the architecture.
As with OpenAI's inability to analyze the entire project, the attempt to generate the skeleton of the target application was also unsuccessful, so the developer had to manually create it. To facilitate this, Spring Initializr was used with the following configuration:
Attempts to query OpenAI for the necessary Spring dependencies faced challenges due to significant differences between dependencies for C# and Java projects. Consequently, all required dependencies were added manually.
Additionally, the project included a database setup. While OpenAI provided a series of steps for adding database configuration to a Spring Boot application, these steps needed to be verified and implemented manually.
After setting up the backend, the next step involved converting all project files - Controllers, Services, and Data Access layers - from C# to Java Spring Boot using OpenAI.
The AI proved effective in converting endpoints and data access layers, producing accurate translations with only minor errors, such as misspelled function names or calls to non-existent functions.
In cases where non-existent functions were generated, OpenAI was able to create the function bodies based on prompts describing their intended functionality. Additionally, OpenAI efficiently generated documentation for classes and functions.
However, it faced challenges when converting components with extensive framework-specific code. Due to differences between frameworks in various languages, the AI sometimes lost context and produced unusable code.
Overall, OpenAI excelled at:
However, it struggled with:
Despite these limitations, OpenAI significantly accelerated the conversion process, although manual intervention was required to address specific issues and ensure high-quality code.
Generating tests for the new code is a crucial step in ensuring the reliability and correctness of the rewritten application. This involves creating both unit tests and integration tests to validate individual components and their interactions within the system.
To create a new test, the entire component code was passed to OpenAI with the query: "Write Spring Boot test class for selected code."
OpenAI performed well at generating both integration tests and unit tests; however, there were some distinctions:
If the test name is self-descriptive, OpenAI was able to generate unit tests with a lower number of errors.

As an example of a microservice-based application, we used the Source microservice project - an application built using .Net Core as the framework, Entity Framework Core for the ORM, and a Command Query Responsibility Segregation (CQRS) approach for managing and querying entities. RabbitMQ was used to implement the CQRS approach and EventStore to store events and entity objects. Each microservice could be built using Docker, with docker-compose managing the dependencies between microservices and running them together.
The target project includes:
Similarly to the CRUD application rewriting project, converting a microservice-based application using Generative AI requires a series of steps to ensure a seamless transition from the old codebase to the new one. Below are the key steps undertaken during this process:
Throughout each step, developers were required to intervene manually to address code errors, compilation issues, and other problems encountered after using OpenAI's tools. This approach ensured that the new application retains the functionality and reliability of the original system while leveraging modern technologies and best practices.
The first step in converting a microservice-based application using Generative AI is to conduct a thorough investigation of the existing architecture and data flows. This foundational step is crucial for understanding:
Challenges with OpenAI
Similar to the process for a simple CRUD application, at the time, OpenAI struggled with larger inputs and failed to generate a comprehensive explanation of the entire project. Attempts to describe the project or its data flows were unsuccessful because inputting several project files at once often resulted in unclear and overly general outputs.
OpenAI’s strengths
Despite these limitations, OpenAI proved effective in explaining large pieces of code or individual components. This capability helped in understanding:
Developers can create a comprehensive blueprint for the new application by thoroughly investigating the initial architecture and data flows. This step ensures that all critical aspects of the existing system are understood and accounted for, paving the way for a successful transition to a modern microservice-based architecture using Generative AI.
Again, our data analytics platform was used in project architecture analysis. By identifying integration points between different application components, the platform helps ensure that the new application maintains necessary connections and data exchanges.
It can also provide a comprehensive view of your current architecture, highlighting interactions between different modules and services. This aids in planning the new architecture for efficiency and scalability. Furthermore, the platform's analytics capabilities support identifying potential risks in the rewriting process.
Rewriting the backend of a microservice-based application involves several intricate steps, especially when working with specific architectural patterns like CQRS (Command Query Responsibility Segregation) and event sourcing . The source C# project uses the CQRS approach, implemented with frameworks such as NServiceBus and Aggregates , which facilitate message handling and event sourcing in the .NET ecosystem.
Challenges with OpenAI
Unfortunately, OpenAI struggled with converting framework-specific logic from C# to Java. When asked to convert components using NServiceBus, OpenAI responded:
"The provided C# code is using NServiceBus, a service bus for .NET, to handle messages. In Java Spring Boot, we don't have an exact equivalent of NServiceBus, but here's how you might convert the given C# code to Java Spring Boot..."
However, the generated code did not adequately cover the CQRS approach or event-sourcing mechanisms.
Choosing Axon framework
Due to these limitations, developers needed to investigate suitable Java frameworks. After thorough research, the Axon Framework was selected, as it offers comprehensive support for:
Moreover, Axon provides out-of-the-box solutions for message brokering and event handling and has a Spring Boot integration library , making it a popular choice for building Java microservices based on CQRS.
Converting microservices
Each microservice from the source project could be converted to Java Spring Boot using a systematic approach, similar to converting a simple CRUD application. The process included:
Manual Intervention
Due to the lack of direct mapping between the source project's CQRS framework and the Axon Framework, manual intervention was necessary. Developers had to implement framework-specific logic manually to ensure the new system retained the original's functionality and reliability.
The source project included a frontend component written using aspnetcore-https and aspnetcore-react libraries, allowing for the development of frontend components in both C# and React.
However, OpenAI struggled to convert this mixed codebase into a React-only application due to the extensive use of C#.
Consequently, it proved faster and more efficient to generate a new frontend application from scratch, leveraging the existing REST endpoints on the backend.
Similar to the process for a simple CRUD application, when prompted with “Generate React application which is calling a given endpoint” , OpenAI provided a series of steps to create a React application from a template and offered sample code for the frontend.
Despite its capabilities, OpenAI-generated components often exhibited issues such as:
Additionally, there were challenges related to CORS policy and web security:
Once the frontend components were completed, the next task was to generate tests for these components. OpenAI proved to be quite effective in this area. When provided with the component code, OpenAI could generate simple unit tests using the Jest library.
OpenAI was also capable of generating integration tests for the frontend application, which are crucial for verifying that different components work together as expected and that the application interacts correctly with backend services.
However, some manual intervention was required to fix issues in the generated test code. The common problems encountered included:
The source application contained Dockerfiles that built images for C# applications. OpenAI successfully converted these Dockerfiles to a new approach using Java 17 , Spring Boot , and Gradle build tools by responding to the query:
"Could you convert selected code to run the same application but written in Java 17 Spring Boot with Gradle and Docker?"
Some manual updates, however, were needed to fix the actual jar name and file paths.
Once the React frontend application was implemented, OpenAI was able to generate a Dockerfile by responding to the query:
"How to dockerize a React application?"
Still, manual fixes were required to:
While OpenAI was effective in converting individual Dockerfiles, it struggled with writing docker-compose files due to a lack of context regarding all services and their dependencies.
For instance, some microservices depend on database services, and OpenAI could not fully understand these relationships. As a result, the docker-compose file required significant manual intervention.
Modern tools like OpenAI's ChatGPT can significantly enhance software development productivity by automating various aspects of code writing and problem-solving. Leveraging large language models, such as OpenAI over ChatGPT can help generate large pieces of code, solve problems, and streamline certain tasks.
However, for complex projects based on microservices and specialized frameworks, developers still need to do considerable work manually, particularly in areas related to architecture, framework selection, and framework-specific code writing.
What Generative AI is good at:
At the time of project implementation, Generative AI still had several limitations .
Benefits of using the data analytics platform:
By leveraging GenerativeAI’s strengths and addressing its limitations through manual intervention, developers can achieve a more efficient and accurate transition to modern programming languages and technologies. This hybrid approach to modernizing legacy applications with Generative AI currently ensures that the new application retains the functionality and reliability of the original system while benefiting from the advancements in modern software development practices.
It's worth remembering that Generative AI technologies are rapidly advancing, with improvements in processing capabilities. As Generative AI becomes more powerful, it is increasingly able to understand and manage complex project architectures and data flows. This evolution suggests that in the future, it will play a pivotal role in rewriting projects.
Do you need support in modernizing your legacy systems with expert-driven solutions?
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In today's rapidly evolving digital landscape, the need to modernize legacy systems and applications is becoming increasingly critical for organizations aiming to stay competitive. Once the backbone of business operations, legacy systems are now potential barriers to efficiency, innovation, and security.
As technology progresses, the gap between outdated systems and modern requirements widens, making modernization not just beneficial but essential.
This article provides an overview of different legacy system modernization approaches, including the emerging role of generative AI (GenAI). We will explore how GenAI can enhance this process, making it not only faster and more cost-effective but also better aligned with current and future business needs.
Legacy systems are typically maintained due to their critical role in existing business operations. They often feature:
Currently, almost 66% of enterprises continue to rely on outdated applications to run their key operations, and 60% use them for customer-facing tasks.
Why is this the case?
Primarily because of a lack of understanding of the older technology infrastructure and the technological difficulties associated with modernizing legacy systems. However, legacy application modernization is often essential. In fact, 70% of global CXOs consider mainframe and legacy modernization a top business priority.
As technology rapidly evolves, businesses find it increasingly vital to update their aging infrastructure to keep pace with industry standards and consumer expectations. Legacy systems modernization is crucial for several reasons:
Modernizing legacy code presents an opportunity to address multiple challenges from both a business and an IT standpoint, improving overall organizational performance and agility.
When it comes to modernizing legacy systems, there are various approaches available to meet different organizational needs and objectives. These strategies can vary greatly depending on factors such as the current state of the legacy systems, business goals, budget constraints, and desired outcomes.
Some modernization efforts might focus on minimal disruption and cost, opting to integrate existing systems with new functionalities through APIs or lightly tweaking the system to fit a new operating environment. Other approaches might involve more extensive changes, such as completely redesigning the system architecture to incorporate advanced technologies like microservices or even rebuilding the system from scratch to meet modern standards and capabilities.
Each approach has its own set of advantages, challenges, and implications for the business processes and IT landscape. The choice of strategy depends on balancing these factors with the long-term vision and immediate needs of the organization.
One of the approaches to legacy system modernization involves rewriting the system's codebase from scratch while aiming to maintain or enhance its existing functionalities. This method is especially useful when the current system no longer meets the evolving standards of technology, efficiency, or security required by modern business environments.
By starting anew, organizations can leverage the latest technologies and architectures, making the system more adaptable and scalable to future needs.
Generative AI is particularly valuable in this context for several reasons:
By integrating GenAI in this modernization approach, organizations can achieve a more streamlined transition to a modern system architecture, which is well-aligned with current and future business requirements. This ensures that the investment in modernization delivers substantial returns in terms of system performance, scalability, and maintenance costs.

Generative AI enables faster speeds and provides a deeper understanding of the business context, which significantly boosts development across all phases, from design and business analysis to code generation , testing, and verification.
Here's how GenAI transforms the modernization process:
Automated documentation and in-depth code analysis : GenAI's ability to assist in automatic documenting, reverse engineering, and extracting business logic from legacy codebases is a powerful capability for modernization projects. It overcomes the limitations of human memory and outdated documentation to help ensure a comprehensive understanding of existing systems before attempting to upgrade or replace them.
Business-context awareness : By analyzing the production source code directly, GenAI helps comprehend the embedded business logic, which speeds up the migration process and improves the safety and accuracy of the transition.
Tool compatibility and integration: GenAI tools can identify and integrate with many compatible development tools, recommend necessary plugins or extensions within supported environments, and enhance the existing development environment by automating routine tasks and providing intelligent code suggestions to support effective modernization efforts.
LLM-assisted knowledge discovery : Large Language Models (LLMs) can be used to delve deep into a legacy system’s data and codebase to uncover critical insights and hidden patterns. This knowledge discovery process aids in understanding complex dependencies, business logic, and operational workflows embedded within the legacy system. This step is crucial for ensuring that all relevant data and functionalities are considered before beginning the migration, thereby reducing the risk of overlooking critical components.
Code generation and conversion : Using LLMs, GenAI aids in the design process by transforming outdated code into contemporary languages and frameworks, thereby improving the functionality and maintainability of applications.
Automated testing and validation : GenAI supports the generation of comprehensive test cases to ensure that all new functionalities are verified against specified requirements and that the migrated system operates as intended. It helps identify and resolve potential issues early, ensuring a high level of accuracy and functionality before full deployment.
Modularization and refactoring : GenAI can also help break down complex, monolithic applications into manageable modules, enhancing system maintainability and scalability. It identifies and suggests strategic refactoring for areas with excessive dependencies and scattered functionalities.
AI-driven monitoring and optimization : Once the system is live, GenAI continues to monitor its performance, optimizing operations and predicting potential failures before they occur. This proactive maintenance helps minimize downtime and improve system reliability.
Continuous improvement and DevOps automation : GenAI facilitates continuous integration and deployment practices, automatically updating and refining the system to meet evolving business needs. It ensures that the modernized system is not only stable but also continually evolving with minimal manual intervention.
To determine if GenAI is necessary for a specific modernization project, organizations should consider the complexity and scale of their legacy systems, the need for improved accuracy in the modernization process, and the strategic value of faster project execution.
If the existing systems are cumbersome and deeply intertwined with critical business operations, or if security, speed, and accuracy are priorities, then GenAI is likely an indispensable tool for ensuring successful modernization with optimal outcomes.
Generative AI significantly boosts the legacy system modernization process by introducing advanced capabilities that address a broad range of challenges. From automating documentation and code analysis in the analysis phase to supporting modularization and system integration during implementation, this technology provides critical support that speeds up modernization, ensures high system performance, and aligns with modern technological standards.
GenAI integration not only streamlines processes but also equips organizations to meet future challenges effectively, driving innovation and competitive advantage in a rapidly evolving digital landscape.
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