## ITSM Guide # AI + ITSM: A guide to making # IT work smarter, faster, and more # efficiently --- AI is changing IT all IT leaders face major challenges with IT Service Management (ITSM) today. From increasing complexity of IT environments, growing user expectations, and the need for swift problem resolution, there are big hurdles to overcome. Generative AI is emerging as a rapidly transformative tool in tackling these challenges, offering advanced analytics to predict and prevent issues, automation to streamline repetitive tasks, and adaptive learning to continuously improve processes. The opportunities are boundless if you know how to use AI to your advantage. “40% of generative AI solutions will be multimodal (text, image, audio and video) by 2027, up from 1% in 2023.” This guide explores how IT leaders can navigate complex IT service demands using gen AI. How do we know? Freshworks has been at the forefront of AI-driven solutions such as Freddy AI for years, offering strategies and tools that make AI an indispensable ally in streamlining how work gets done. **Optimize service management while driving innovation** of 225 IT decision-makers say that they deal with high levels of complexity. Complexity has been a significant roadblock, slowing down agents, employees, and decision-makers. 68% of 225 IT decision-makers say that they deal with high levels of complexity. Agents spend too much time on administrative tasks Agents must deliver high-quality support every day. But, legacy IT solutions often require a lot of manual administrative work to create and complete tickets. This slows agents down and prevents them from focusing on high-priority tasks. Agents must also possess a wide breadth of knowledge to draft accurate responses to questions, which means lengthy onboarding and training sessions. Employees can’t find the answers they need Employees expect to talk to IT whenever they need help. They’re used to the around-the-clock customer support they receive from large brands. They want immediate action, but without a self-service option, ITSM solutions cannot meet this demand. Decision-makers don’t have the right insights Leaders want to make decisions on the fly. But if they don’t have the right information—or it requires running SQL queries—they can’t operate quickly. Sifting through multiple reports to achieve timely insights slows down decision-making and isn’t scalable. # Leveraging generative AI to navigate a complex ITSM landscape The promise of gen AI extends beyond summarizing and analyzing data. It means asking the right questions and learning from the conversations. This capability makes it particularly suited for ITSM. Gradual shifts have driven AI’s evolution in ITSM. Originally focusing on automating simple tasks and queries through rule-based chatbots—using machine learning (ML) and analytics to automate IT operations—it has since expanded to more complex functions such as predictive analytics, automated ticket routing, and proactive issue resolution. AI agents are poised to revolutionize ITSM, increasing automation and productivity. By enabling AI to operate autonomously, it can not only automate routine tasks, but also anticipate and prevent issues before they arise. “By 2028, 33% of enterprise software applications will include agentic AI, up from less than 1% in 2024, enabling 15% of day-to-day work decisions to be made autonomously.” AI with agency enables reimagined experiences for teams through automated workflows, task prioritization, and ticket deflection. According to the Freshservice IT Service Management Benchmark Report, 2024, organizations of various sizes across industries see a decrease in the average resolution time (ART) of 34.58% with workflows in place. Service desk integrations enable the smooth flow of data, increase visibility, reduce time to resolution, and enhance user experience. With timely insights, AI can monitor metrics, stay on top of trends and outliers, and take action. To unlock IT’s true potential, we need to modernize our ITSM strategies. This effort involves breaking down barriers, leveraging artificial intelligence to streamline processes, and aligning ITSM with broader business goals. By doing so, we can drive business success and create a more impactful role for IT within the organization. # How AI and a modern ITSM can enhance employee experiences Generative AI can automate tasks such as ticket categorization and prioritization, and it can even draft initial responses to improve the agent experience. AI agents can offer 24/7 personalized support through collaboration tools such as Slack or Microsoft Teams, automating first-line support and resolving employee issues instantly. It can support agents by providing comprehensive reports and summarizing conversations among agents across various collaboration channels. This helps in rewiring the processes and streamlining the employee experience. Increased efficiency: By automating repetitive and mundane tasks, intelligent automation and AI improve ITSM efficiency. AI can also help identify and address process inefficiencies, leading to faster resolution times, improved response times, and better overall service delivery. Improved employee satisfaction: AI and intelligent automation can also help deliver better employee experience with faster response times, more accurate information, and personalized support. For example, gen AI-powered chatbots can handle routine queries and provide employees with self-service options, freeing up human agents to focus on more complex issues. Enhanced insights: Gen AI can help identify and address potential service problems before they escalate. AI-powered conversational inquiries and recommendations provide business leaders with additional context to analyze and interpret data quickly and intelligently. # How to get started with AI in ITSM Integrating gen AI into ITSM demands careful planning and execution. While there are challenges, a strategic implementation plan can drive meaningful business results. According to the report by Harvard Business Review Analytic Services, The Service Management Advantage: Helping CIOs Turn IT into a Strategic Powerhouse, the two most popular uses of AI in IT service management are handling user requests through multiple channels (e.g., email, voice, chat, self-service) and streamlining the process of submitting and tracking service requests. Get started with AI with the following steps: - Identify opportunities for AI-driven, people-first experiences - Streamline service delivery: Identify repetitive tasks and low-value activities that can be automated, such as password resets and HR inquiries. - Enhance agent productivity: Explore opportunities to use AI copilots to assist agents with complex tasks. - Improve employee satisfaction: Utilize AI to analyze employee feedback and identify trends. - Ensure data security and privacy - Data anonymization and masking: Implement robust data protection measures. - Ethical AI practices: Prioritize fairness, accountability, and transparency in AI algorithms. - Set clear goals and KPIs - Align with business objectives: Ensure that AI initiatives align with broader organizational goals. - Track and measure: Monitor key performance indicators (KPIs) to assess the impact of AI on employee experience. - Pilot - Select a pilot project: Choose a specific use case for implementation. - Train and empower employees: Provide training and support to ensure a smooth transition. - Gather feedback: Collect feedback from employees to identify areas for improvement. - Scale and Expand - Phased rollout: Gradually expand AI implementation to other areas of the business. - Continuous learning: Stay updated on the latest AI trends and technologies. - Monitor and optimize: Continuously monitor the performance of AI systems and make adjustments as needed. # KPIs and performance metrics IT leaders and decision-makers can define the right key performance indicators (KPIs) and metrics. - Ticket deflection rate: Organizations using generative AI-powered self-service to mitigate recurring issues and empower agents to focus on critical tasks witness ticket deflection rates as high as 53%. - Incident response and resolution times: With generative AI-powered assistance, agents experience a 26.55% improvement in response time and achieve 34.58% faster ticket resolutions. - Employee productivity: Freshworks used Freshservice to transform employee service management, saving $605,906 in costs in 2023. # Meet Freddy AI: Your trusted enterprise assistant Freshworks offers people-first AI to deliver exceptional customer and employee experiences. Freddy AI supports all Freshworks products, including its ITSM solutions. The key capabilities include: - **Freddy AI Agent:** Enables always-on, trustworthy conversational assistance. - **Freddy AI Copilot:** Provides rich contextual assistance for agents to improve service delivery. - **Freddy AI Insights:** Delivers visibility into service desk performance with AI-powered inquiries and automated recommendations. # Decreasing average resolution time by 50% with Freshservice TaylorMade, a leading golf equipment manufacturer, faced a significant challenge as it scaled its global operations and transitioned to the cloud. By centralizing IT operations, automating workflows, and empowering employees with self-service capabilities, TaylorMade achieved significant improvements. - **Reduced response and resolution times:** Fully automated workflows halved the average response and resolution time for service tickets. - **Increased efficiency:** Effectively managed a 250% increase in ticket volume without additional headcount. - **Enhanced employee satisfaction:** Freddy AI Agent empowered employees to resolve issues independently, leading to higher satisfaction levels. # Reimagining the ITSM future with AI As gen AI advances, IT leaders can use the opportunity to reimagine their approach to service delivery. This guide has explored strategies for organizations to implement gen AI in ITSM and improve key performance indicators such as incident resolution accuracy and user satisfaction. Embracing gen AI in ITSM is a strategic imperative for staying ahead in the digital era.