Within the Federal Reserve System, we have also been exploring the use of AI in our own operations and have established an AI program and governance framework for the use of AI technologies. One internal application of GenAI that shows considerable promise is technology modernization. Within clear guardrails, we are using GenAI tools to translate legacy code, generate unit tests, and accelerate cloud migration. So far, the result of this usage is faster delivery, improved quality, and an enhanced developer experience. In one recent project updating hundreds of databases, AI tools helped cut the time to complete this type of work by 50 percent, detected and resolved 30 percent more issues during testing compared to previous migrations, and enhanced team focus on higher-value coding work. My sense is that these are the kinds of uses and the scale of success that many businesses are experiencing.
