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IBM & Google Cloud launch new AI modernisation practice

IBM & Google Cloud launch new AI modernisation practice

Tue, 9th Jun 2026 (Today)

IBM and Google Cloud have launched a new Google Cloud practice focused on AI deployment and core systems modernisation, which they described as a multi-billion-dollar opportunity in Google Cloud services.

The initiative combines IBM Consulting Advantage, the consulting group's AI delivery platform, with Google Cloud's Gemini Enterprise Agent Platform, cybersecurity tools and data services. It will be staffed by thousands of Google Cloud-certified consultants and engineers to support clients working across hybrid and legacy technology estates.

The partnership also expands IBM's work on industry-focused AI agents. The company is building a portfolio of agents for Gemini Enterprise aimed at sectors including banking, government, retail, telecommunications, energy, security, insurance and life sciences.

The agents are intended to support workflow automation and decision-making in regulated and complex operating environments. IBM consultants will be able to design, build and govern AI agents directly on Google Cloud using pre-built assets, reusable agents and the company's transformation methods.

Practise scope

The new unit will target AI and data projects, sector-specific solutions, cybersecurity operations, hybrid cloud modernisation and governance. It also plans to connect Gemini with IBM's watsonx Orchestrate and watsonx.data products, while drawing on software from HashiCorp and Apptio for monitoring, compliance and performance management.

IBM and Google Cloud also plan to develop interface patterns and other tools to connect enterprise data into Gemini. They described the approach as open and flexible, spanning IBM technology and software from other providers.

The group is intended to address a common problem for large organisations adopting AI: linking new models and agents to fragmented internal data and older systems without rebuilding everything at once. Hybrid cloud estates remain a particular challenge for regulated industries that need to keep some workloads on premises while moving others to public cloud platforms.

The companies highlighted sectors including aerospace, financial services, government, healthcare and telecommunications. They also pointed to the use of Confluent software to stream and govern real-time data for AI systems in industries where compliance and operational oversight are central.

Existing work

IBM and Google Cloud have already worked together on migration and modernisation programmes. One example is Airbus, where they said they helped transition two aerospace businesses into independent operations in under 18 months by updating more than 100 critical systems across engineering, manufacturing and customer service.

The announcement reflects a broader shift in the cloud and consulting market as large technology groups try to turn AI experimentation into production projects with measurable operational impact. Demand has grown for service firms that can combine cloud migration with data integration, governance and sector expertise, especially as companies move beyond pilot deployments.

For IBM, the new practice supports its effort to position consulting as a route to wider use of its AI software and automation products. For Google Cloud, it expands the number of consultants trained to sell and implement its AI and cloud services as competition for enterprise AI spending intensifies.

Mohamad Ali, Senior Vice President and Head of IBM Consulting, said the agreement was designed to address the scale of change facing large businesses. "Enterprises are facing one of the most complex modernization cycles in decades," Ali said. "By expanding our work with Google Cloud, we're giving clients a clearer and more reliable path to scale AI across their business, combining deep industry expertise, hybrid-cloud modernization, and an AI-first delivery platform."

Google Cloud said the tie-up would widen access to implementation expertise. "This partnership significantly expands the pool of expert Google Cloud consultants in the market to meet surging demand for AI," said Kevin Ichhpurani, President, Global Partner Ecosystem at Google Cloud. "By combining Google's agentic infrastructure with IBM's deep industry expertise and proven delivery frameworks, we are ensuring joint customers can move beyond pilots to deploy and govern production-grade AI agents across their entire cloud environment."