How AI is changing the IT services landscape
The rapid evolution of artificial intelligence (AI) and its growing range of applications is a key narrative driving public interest and investment in the IT services sector as a whole.
OpenAI’s conversational chatbot, ChatGPT, has already made waves in the industry, providing users with an easy-to-use and freely available tool that boasts impressive functionality.
AI in the industry
Every Big Tech firm now wants to become an AI leader – or thinks it already is – and speculation over progress and capabilities in technology is resulting in huge swings in share prices. Following OpenAI’s success, Microsoft has launched Copilot – an AI tool to assist preparing documents created in its suite of Office products. Copilot promises to enhance the productivity of workforces around the world by reducing the time and effort required to create documents while also improving the quality of the output through review and automation. As with other industries, AI is set to play a transformational role in the operations of IT services businesses and their interactions with customers. Specifically, rapid advances in the following areas are expected.
1. Automation
AI-powered tools help streamline repetitive and time-consuming tasks, such as software testing, debugging and monitoring. This has benefits in both quality and speed of task execution. It also allows organisations to maximise the talents of their IT professionals to focus on more strategic and creative tasks, such as software development and innovation.
2. Customer service
Chatbots can quickly and efficiently respond to customer queries, providing instant support and assistance as a front-line service offering. This helps reduce wait times and improve customer satisfaction, with the potential to also save costs by reducing headcount. Virtual assistants provide real-time support and guidance to IT services professionals on how to resolve issues.
3. Security
AI helps IT services companies identify and mitigate potential security risks. By analysing large amounts of data, AI algorithms can identify vulnerabilities and implement security upgrades to prevent cyber attacks. This helps companies protect their clients’ sensitive data and avoid costly security breaches.
However, significant concerns remain over AI including data privacy and security for business IP and customer data as well as the potential for bias (as noted in our recent ESG insight) due to the source data sets used to train the AI models.
Effective risk management over AI usage and data access is vital for its successful implementation. Expanding its usage has become a key strategic priority for IT services businesses, who will inevitably pave the way for mass adoption across all industries.
Help from the experts
At Moore Kingston Smith we closely monitor deal activity and valuations in the IT services industry and use a market intelligence-led approach to all our client engagements. Please reach out if you would like to schedule a conversation with one of our team to discuss your business and strategic options.