In 2024, no technology is more hotly debated and widely anticipated than AI.

From individual consumers to blue-chip corporations, everyone is eyeing a future in which AI changes the way we work, create, consume, and communicate.

The IT industry is front and centre in the journey towards AI-enabled change—and for those in the IT service management (ITSM) sector, AI could be a game-changer on everything from process improvements to delivering better experiences for employees and customers.

But IT professionals are divided over how AI can improve their workplace experiences according to The State of AI in ITSM – 2024 and Beyond, a report from ManageEngine and the Service Desk Institute.

Although half believe generative AI (GenAI) tools have improved their work productivity, probably due to their ability to amplify individual capabilities and get work done quicker, nearly a third admit they rarely or never use GenAI, and 21% don’t believe it has brought an uplift to productivity.

A significant majority (71%) of IT professionals say their organisation is either researching or piloting AI in IT support and ITSM operations.

Uptake is therefore still in its earliest stages, but there’s a clear appetite within the industry to identify and make the most of the possible benefits of the technology, indicating that AI adoption is becoming a pivotal consideration in ITSM strategies.

User experience and enterprise productivity are AI’s proving grounds

Organisations are experiencing a range of impacts on efficiency and end-user satisfaction where IT departments are investing in AI.

The majority of spending and research is going towards UX and productivity drives with a significant focus on automation of repetitive tasks, predictive analytics for incident prevention, and virtual assistance for end-user support.

Similarly, respondents believe incident management, knowledge management, and service request management will be the areas most impacted by AI as it becomes progressively integrated into ITSM operations.

Strategic use cases of AI in ITSM, such as intelligent data analytics for insight and decision-making, are seeing the lowest level of current adoption.

This resonates with the survey responses from many who said that integrating AI into their existing tool set is challenging.

Clearly, despite the buzz around AI’s rapid input-to-benefit speed, embedding the emerging technology into enterprise-scale systems is not going to be an overnight job.

Yet there is no question it is coming, with an expectation that AI-driven processes will increase substantially within the next five years.

Reducing costs and driving innovation

The survey reveals the primary motivators of AI adoption in IT and the differing levels of impact they have. There are two key drivers behind the shift towards AI.

The first motivator is to streamline processes and reduce costs (81%), and the second is spurring innovation (67%) to differentiate the business from its competition.

So, despite AI’s much-discussed potential to change the way we work, businesses are still rightly focused on efficiency and cost first. After all, if innovation leads to spiralling costs, it won’t benefit the business in the long term.

There’s more to it than that, however. While the desire to streamline processes and reduce costs comes in as the top AI adoption driver, achieving truly innovative AI use cases isn’t easy.

It requires advanced knowledge of GenAI, a clear AI strategy, and the right skilled workforce to build out or integrate these solutions. The current AI offerings in the market lower the barrier to adopting AI to automate basic service desk tasks, but strategic AI use cases are yet to be commoditised.

ManageEngine’s report highlights the main challenges to adopting AI is a lack of skills and expertise in GenAI, followed by budget constraints and lacking a clear AI strategy.

Although 45% of IT professionals report having a basic understanding of GenAI, there’s a significant shortage of GenAI experts. So, companies are having to start small, employing AI to improve mundane tasks rather than lead bold change—for now, at least.

A lack of specialist AI knowledge brings risks

Not being able to unlock AI’s full innovative capabilities isn’t the only possible problem IT teams face. The lack of AI-specific knowledge among IT teams brings a number of potential risks to organisations.

Almost half of respondents (48%) report poor or limited understanding of the compliance and legal issues surrounding AI, and a similar number have poor or limited understanding of the risks and security measures. Meanwhile, one in four do not have governance frameworks in place for the implementation of AI.

Adapting to AI will be more than a technological challenge; it will be a cultural shift within ITSM.

ITSM professionals and organisations need to prepare for a future where AI is a fundamental part of their service delivery toolkits. Its successful integration will hinge on an ability to synchronise technology with the industry’s most valuable asset: its people.

The future will favour organisations that understand this balance, transforming their operations to not only include AI but also enhance the capabilities and happiness of their human workforce.