Integrating AI into IT Service Delivery

Organizations are embarking on a transformative journey integrating Artificial Intelligence (AI) to elevate service delivery. Projections indicate that global IT spending will reach USD 5.1 trillion in 2024, signifying an 8 percent increase from the last year. Although generative AI hasn't yet made a substantial impact on IT spending, Gartner predicts that the broader investment in AI will contribute to the overall growth of IT expenditures. Enterprises are increasingly recognizing the pivotal role AI projects will play in shaping their future, where AI will seamlessly intertwine with the fabric of operations, from service desks to infrastructure and application services. The overarching goal is to transform productivity, enable steadfast service delivery, and optimize developer efficiency.

Integrating AI across operations

Gartner predicts that by 2024, both the software and IT services segments will experience double-digit growth, with global public cloud spending on the rise. This calls for technology service providers to not merely adopt new technologies such as generative AI but to embrace a broader vision that goes beyond the mere adoption of newer technologies.

Looking through the lens of AI agents and generative AI, technology service organizations must aspire to deliver superior outcomes across diverse domains. The State of AI in 2023 report by McKinsey shows that 55 percent of organizations have adopted AI. However, fewer than one-third have implemented AI across multiple business functions, indicating limited overall use. Notably, product and service development, along with service operations, continue to be the primary business functions where respondents most frequently report the implementation of AI.

The same McKinsey report also found that almost one-quarter of C-suite executives surveyed revealed that they personally utilize generative AI tools for their work. Over one-quarter of respondents from AI-utilizing companies stated that generative AI is already a focal point on their boards' agendas. About 40% of respondents expressed that their organizations plan to increase their overall investment in AI due to advancements in generative AI.

Organizations that have already integrated AI capabilities have been at the forefront of exploring the potential of generative AI. Those deriving the most value from traditional AI capabilities are also leading the way in adopting generative AI tools, showcasing a proactive approach to embracing these transformative technologies, suggests the report.

Identifying key areas for strategic transformation

Organizations are actively identifying areas for strategic transformation. It includes services, call center operations, and the evolution of testing protocols, to reduce errors. The emphasis is on adopting tools featuring embedded AI agents to enhance capabilities, marking a pivotal shift in the delivery organization within technology services. AI is playing a crucial role in assisting companies in overcoming shortages in labor and skills by automating repetitive tasks.

This transformation is not confined to a singular element within an organization; rather, it encompasses all three aspects—operations, infrastructure, and applications. Interestingly, the ease of adoption varies among organizations; newer entrants are quick to embrace change, while those entrenched in the system may find it challenging to change. The true challenge lies in fostering widespread adoption within a large, globally dispersed organization.

Fostering cultural change in organizations

Undertaking this transformative journey resembles a snowball effect, setting the ball rolling, and gradually accumulating momentum. In the early stages, it is necessary for organizations to foster cultural change.  The approach is not sector-specific but outcome-centric.

Whether providing infrastructure services for a global logistics firm or managing a service desk for a major financial banker, the focus remains on achieving superior outcomes through the integration of AI. The lens through which the organization views this evolution has to be multi-faceted, spanning infrastructure, applications, and operations.

Adopting an outcome-centric approach

The process of migrating applications from legacy systems to modern platforms involves extracting logic from legacy systems, traditionally rife with manual interventions, and porting them to new systems. This is a compelling use case for AI agents — automating testing processes, reducing human touch, ensuring consistency, and reducing errors.

The journey toward AI integration within organizational frameworks is an ongoing narrative. It's a tale of cultural adoption, strategic deployment, and the pursuit of superior outcomes. For technology service providers this would also mean managing client expectations and adhering to new service delivery timelines. As organizations forge ahead, they are poised to leverage AI in numerous applications, promising not only efficiency but also a paradigm shifts in how we navigate the ever-evolving landscape of technology and service delivery.