Morgan Stanley has internally developed and patented DevGen.AI, an AI-powered tool designed to automate the conversion of legacy code into modern programming languages. Launched in January 2025, DevGen.AI has already saved the banks developers over 280,000 hours by translating outdated code such as COBOL into plain-English specifications, streamlining modernization efforts across the firm. The tool was conceived during a hackathon and built by a small, agile team, later expanding to 20 engineers. Importantly, leadership emphasizes that DevGen.AI is intended to eliminate repetitive, rote tasks rather than reduce headcount. The bank continues to hire software engineers, highlighting that modernization demand far exceeds available technical resources. DevGen.AI remains an internal asset for now, with no immediate plans for external licensing, despite its high potential value to other organizations facing similar legacy code challenges. The projects success also underscores Morgan Stanleys broader innovation culture, supported by initiatives like the Patent Accelerator Program, which has increased patent filings and fostered cross-functional collaboration.

Key Points:

  • DevGen.AI has automated legacy code modernization, saving over 280,000 developer hours in six months.
  • The tool was developed in-house by a small, focused team and is protected by a newly granted patent.
  • Morgan Stanley leadership stresses that the tool eliminates repetitive work, not jobs; the firm is still hiring engineers.
  • DevGen.AI will remain an internal solution for now, supporting the bank’s ongoing modernization needs.
  • The Patent Accelerator Program has driven a culture of innovation, increasing patent activity across the firm.

Business Insider