AI has long been part of IT, but it is now becoming integral to core operations.
According to the 'State of AI in IT 2025' report by Atomicwork, AI adoption in IT is on the rise, with 85% of survey participants either using AI to a certain extent, leaving only 15% entirely off the AI radar.
While some race toward AI adoption, others remain skeptical over the governance, compliance, and security risks associated with leveraging AI in IT. Our word of advice here–the pros definitely outweigh the cons of AI service management.
In this article, we’ll explore what AI means for service management and how IT teams are leveraging it to achieve their organizational goals.
AI in ITSM today goes beyond basic automation.
While traditional ITSM relies on reactive support, AI-led ITSM leverages automation, predictive analytics, and intelligent decision making to deliver faster, proactive, and more contextual solutions. It really brings ‘intelligence and understanding’ to ITSM processes.
Chatbots were the first breakthrough in human-bot interactions, which rely on keyword matching and predefined information to answer basic questions. While intended to help, they often frustrated users by struggling to handle complex interactions.
There was potential for AI to recognize user intent, provide contextual answers, and take autonomous action instead of just retrieving predefined information, thus ushering in the era of Agentic AI.
Agentic AI refers to advanced AI systems that are capable of autonomously achieving specific goals. They can understand complex problems, set goals, and plan actions to achieve them. Agentic AI unlocks a range of transformative applications in ITSM, including the following.
AI agents, with minimum training or supervision, can take over not just routine tasks but also complex business workflows with built-in enterprise knowledge graph and employee context. Vijay Rayapati, CEO of Atomicwork
As you can see, integrating AI into ITSM processes brings numerous benefits that can significantly improve service quality, efficiency, and user satisfaction. Here are some significant applications of AI in ITSM.
While the initial investment in AI can be significant, the long-term cost savings are substantial. By automating routine tasks, improving efficiency, and reducing errors, AI can help IT teams significantly reduce their operational costs.
This is particularly crucial given that 39% of IT professionals cited ‘additional cost’ as a barrier to AI adoption, highlighting the need for cost-effective AI solutions. The cost benefits of AI in ITSM are multifaceted.
For instance, consider password reset requests, a common and time-consuming task for IT support. In a company with 1,000 employees, each raising at least one password reset ticket annually, automating just this task alone could save around $100,000 annually.
With AI advancing self-service capabilities and streamlining workflows, 57% of IT professionals believe employee productivity will be a key benefit of AI. Generative AI can automate tasks that suck 60 to 70% of employees’ time, as per McKinsey research.
With agentic AI stepping in, it’s almost like having an additional team member, whose job is not only to fulfill basic tasks but also to suggest improvements and initiate complex actions. Ultimately, AI steps in where humans are limited by time and bandwidth, while humans step in where AI requires judgment, and emotional intelligence. When teamed up, humans and AI will unlock unprecedented levels of productivity.
Speed is a big factor in productivity, and AI is fast. We mustn’t let the tools get in the way. Roy Atkinson, CEO of Clifton Butterfield LLC
While traditional self-service rely on phrase matching to provide answers, AI-powered assistants rely on the intent. They can understand that a user asking “Can't log in” and another saying “Password not working” are the same issue, providing appropriate solutions without needing separate configurations for each phrase.
User experience has been significantly improved by AI, with 48% of IT professionals recognizing 'end-user assistants' as a game changer in self-service.
US-based safety gloves maker Ammex Corp achieved 65% end-user query deflection by adopting our AI-powered assistant.
AI’s ability to analyze large datasets and provide actionable insights will be a key driver for better decision making in organizations, as cited by 51% of IT professionals in the report.
David Williamson, CEO of Abzena, believes data is the biggest differentiator every enterprise is trying to unlock. David says using AI in product development has been game-changing. By analyzing cell characteristics accurately, AI has helped them make better decisions, whether it’s improving drug efficacy or extending a medicine’s shelf life.
Reactive problem-solving has been the norm, but it’s never been the ideal approach to IT. AI brings a proactive approach to problem management, uncovering patterns and pinpointing root causes, leading to the implementation of permanent solutions.This shift from reactive to proactive management improves service quality, with 39% of IT professionals acknowledging AI’s impact in enhancing problem management.
When IT issues arise, time is of the essence. AI is transforming incident management by automating critical steps in the resolution process. AI can accurately categorize, prioritize, and intelligently route the incidents to the right stakeholders, ensuring that critical issues receive immediate attention. By generating concise summaries of lengthy ticket threads, AI also provides the stakeholder with quick insights into the issue.
AI offers the opportunity to move from are active to a proactive IT model, using incident and problem management as diagnostic tools to analyze the operational performance of a company's collective tech stack and preemptively address issues before they disrupt business workflows. Mark Settle, Ex-CIO Okta and BMC software
AI’s ability to learn and improve continuously is a powerful feature in ITSM. Unlike traditional static systems, AI can analyze the outcomes of every experience, constantly updating its knowledge base. 43% of IT professionals say knowledge management is a top impact area of AI in ITSM.
For IT teams, this means having access to an ever-expanding knowledge base. This leads to consistent service quality and easy onboarding of new IT staff, as they can leverage the AI system's accumulated knowledge.
In an era where personalization is everything, AI enables IT support to tailor its services to individual user needs. AI-enhanced processes are context-aware and enriched with information about employees' devices and software, leading to more relevant answers and higher user satisfaction.
If a user reports a VPN issue, the AI can consider the user's role, device, and recent system changes to offer a tailored solution. This level of personalization improves the user experience and increases the likelihood of successful self-service, reducing the burden on IT support staff.
Streamlining processes and automating workflows are crucial for maintaining efficiency and meeting growing demands. AI excels in this area by analyzing complex operational patterns and identifying opportunities for automation. For instance, it can automate the categorization and routing of incoming tickets, ensuring that issues are directed to the appropriate teams without manual intervention.
Despite these benefits, some organizations are still hesitant to invest in AI, reflecting cautious optimism rather than full commitment. Trust plays a key role in AI adoption. Our 2025 report shows 47% of IT professionals have seen increased trust in AI over the past year, reflecting its growing reliability.While some are debating the possibilities of AI, some are already operationalizing it, reaping the benefits of enhanced efficiency, smarter decision-making, and streamlined workflows.
AI will continue to evolve, and those who embrace it now will lead the way for more agile and responsive IT operations in the future.