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ISG Study Finds AI Boosts Business Service Automation at U.S. Enterprises

Companies seize new capabilities in customer service and beyond with GenAI, fine-tuned for business-specific needs, ISG Provider Lens™ report says

STAMFORD, Conn., January 28, 2025–(BUSINESS WIRE)–Enterprises in the U.S. are changing the way they automate business services to take advantage of rapid advancements in AI, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Intelligent Automation Services report for the U.S. says generative AI (GenAI), enhanced to fine-tune its performance, gives companies new ways to automate customer service, IT support and business operations.

Since 2023, more organizations in the U.S. have begun to use GenAI to build agentic, autonomous systems that can make decisions on their own. The emergence of vision-language models (VLMs), small language models (SLMs) and retrieval-augmented generation (RAG) allow enterprises to better fit GenAI to their specific needs. This has improved the performance AIOps, which uses data generated by IT systems to automate operations.

“The rapid integration of GenAI into business automation is reshaping whole industries in the U.S.,” said Steve Hall, president and Chief AI Officer of ISG. “Rather than simple cost savings, automation with GenAI can generate business value.”

U.S. enterprises are aggressively adopting low-code/no-code platforms with user-friendly interfaces to accelerate automation development, ISG says. By allowing non-technical employees to get involved in development, these platforms help organizations align automation with business goals instead of just operational objectives. This trend is especially strong in the U.S., where fewer regulations have allowed for greater innovation.

Current applications of GenAI in the U.S. include using LLMs to automate software system updates, feature releases, patches and configurations, the report says. AI tools can analyze historical data to predict the best times to carry out these actions without causing disruptions. Organizations are also beginning to roll out systems that use AI models to detect, diagnose and resolve issues autonomously, increasing uptime and business resilience.

Many U.S. enterprises also have focused on customer service applications of GenAI, ISG says. LLMs help organizations automate support, improve personalization and resolve customer concerns more quickly. Chatbots based on LLMs, enhanced using RAG techniques, are replacing traditional platforms based on scripts and improving accuracy. VLMs can automate visually rich tasks such as product troubleshooting, analyzing product images uploaded by customers to diagnose problems and instantly deliver solutions.

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Customizing AI models with industry knowledge and enterprise-specific functions is a major trend in the U.S., the report says. Organizations are using fine-tuned AI models to automate the processing of invoices, contracts and other documents. Some are using GenAI to automate finance and HR decision-making, even analyzing employee performance data to generate recommendations for promotion, training or restructuring.

“GenAI has increased the value of automation by taking it beyond standardized, repetitive tasks,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It is going to be one of the most crucial levers for digital transformation.”

The report also explores other trends affecting intelligent automation in the U.S., including the rising use of speech automation and growing demand for transparent, explainable AI models.

For more insights into the automation challenges faced by U.S. enterprises, including technical skills gaps and increased risks from GenAI, plus ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Intelligent Automation Services report for the U.S. evaluates the capabilities of 40 providers across three quadrants: Intelligent Enterprise Automation, Artificial Intelligence for IT Operations (AIOps) and Next-gen Automation.

The report names Accenture, Capgemini, Cognizant, HCLTech, Infosys, LTIMindtree, TCS, Tech Mahindra and Wipro as Leaders in all three quadrants. It names Deloitte, EXL, Genpact and Hexaware as Leaders in two quadrants each. DXC Technology, IBM, Microland, Persistent Systems and WNS-Vuram are named as Leaders in one quadrant each.

In addition, DXC Technology and Mphasis are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants each. Persistent Systems and WNS-Vuram are named as Rising Stars in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among Intelligent Automation Services providers. Persistent Systems earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Microland, Persistent Systems and WNS-Vuram.

The 2024 ISG Provider Lens™ Intelligent Automation Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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Contacts

Press Contacts:

Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG
+1 978 518 4520
isg@matternow.com

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