Artificial Intelligence
AI consulting to navigate the ecosystem and scale & govern enterprise-class AI solutions.
Adopting and scaling generative AI Making every AI move count AI efficiencies driving 30-58% savings
ISG: the first technology sourcing advisor to deliver on the promise of applying AI at scale.
Our experts leverage strengths in operating model design and our deep knowledge of the entire provider ecosystem to leverage AI as a mainstream technology for accelerating business outcomes. Depending on the maturity of your operations, AI drives a 30-60% reduction in costs while focusing your workforce on higher-order, more impactful uses for their time.
Talk to an ISG AdvisorAdopting & Scaling Generative AI
Our research shows that scaling GenAI from pilot projects to full-scale production deployments remains fraught for enterprises.
State of the Generative AI Market
Deep GenAI market data, a realistic understanding of potential adoption pitfalls, and advice on how to invest in the right expertise and infrastructure.
Download the Report
ISG Guides Top Hospitality and Entertainment Company to Enhance Data and AI Strategy
ISG served as a strategic advisor, fostering a collaborative bridge between the business and its technology data team, and steering a project aimed at unlocking significant value from data across key business domains.
Read More“Through 2026, model governance will remain a significant concern for more than one-half of enterprises, limiting the deployment, and therefore the realized value, of AI and machine learning models.”
Matt Aslett
Director of Research Analytics and Data
AI-Powered Cost Optimization: How Smart Companies Are Slashing Expenses and Boosting Efficiency in 2025
Cost optimization in 2025 is no longer just about reducing expenses—it has become a strategic necessity for business resilience and long-term success. Geopolitical instability, technological advancements and evolving regulatory frameworks are fundamentally altering the cost structures that organizations have relied on for decades.
Read MoreIs your firm struggling to get value out of your GenAI investments?
Get to the next level with ISGHow We Can Help:
Making Every AI Move Count
AI is hot, and spending is expected to continue growing - one ISG study found GenAI spending will double from 2024 to 2025. But this is all happening in a time of intense cost optimization and budget tightening. So it's not just about throwing money at the problem or infinite trial-and-error PoCs - it's about making the right moves from the start. Whether it's revamping your existing contracts and partnerships for efficiency gains or investing in innovation and up-leveled operations, ISG is your independent advisor to deliver on the promise of applying AI at scale.
Renovate your existing operations
New AI Products
Planning new data and/or AI products for AI-based revenue? We advise on your technology estate, governance, operations and partners.
AI Sourcing & Contracting
Navigate provider pricing and terms for AI, from tokenization to inquiry-based models, and access the latest in AI contracting best practices.
AI-ready Infrastructure
Design, source and adopt the right cognitive infrastructure and data engineering to enable your AI investments at scale.
AI Operating Model
What would your organization look like if AI was built in to the core? We help reimagine your organization's future state and build an actionable plan to get you there.
AIOps for Sourcing
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
AI Sourcing & Contracting
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
AI-ready Infrastructure
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
AI Operating Model
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Shape new revenue opportunities
AI Cost Optimization
Review your existing IT and business operations and spend to identify how AI can drive a faster, cheaper, better and/or more efficient operating model.
AI for GCCs, BizOps or Contact Centers
Find out how to infuse AI into your global capability center, your contact center, or your HR, finance & accounting, and/or procurement operations.
AI-ready Infrastructure
Design, source and adopt the right cognitive infrastructure and data engineering to enable your AI investments at scale.
AI Operating Model
What would your organization look like if AI was built in to the core? We help reimagine your organization’s future state and build an actionable plan to get you there.
AI Cost Optimization
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
AI for GCCs, BizOps or Contact Centers
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
AI-ready Infrastructure
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
AI Operating Model
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies. Additional extended information. The right side can be chart data, a graphic, an image, whatever related content you need. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
AI efficiencies driving 30-58% savings
Our research shows providers are experiencing 30% to 58% cost savings as a result of AI adoption. This impacts almost all traditional IT sourcing contracts. Are your providers passing along those savings to you?
How is AI impacting the sourcing industry?
AI is enabling service providers to deliver solutions faster, better and cheaper. ISG research has found the best value impact of AI is through client’s partner ecosystem (managed services). Providers are reaping cost savings (as below), but not passing on as PRICE savings.
- Infrastructure - ~40% cost savings across the towers.
- Workplace - the data is showing about a 60% reduction, mainly from automation and labor cost reduction. Automating Ticket triage and using predictive analytics will aid in issue prevention.
- ADM - 35% mainly from task reduction, labor cost and automation. A lot of this will be driven by reduction in major incidents, automated testing, patching and development.
Glossary
What is AIOps - AIOps stands for Artificial Intelligence for IT Operations. It refers to the application of artificial intelligence, machine learning, and data analytics to enhance and automate IT operations processes. AIOps enables organizations to manage and monitor IT systems more efficiently by analyzing massive amounts of data generated by IT environments in real time.
What Will AI Do to Software Development and AIOps Outsourcing?
The integration of generative AI (GenAI) in the software development process profoundly transforms the entire lifecycle, significantly boosting productivity, efficiency and quality.
Read More“By 2027, ITOps software providers must modernize and enhance product offerings to support data lakes, AI technologies and advanced analytics necessary for AIOps to reduce monitoring and increase automation.”
Jeff Orr
Director of Research, Technology Research
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