State of AI in IT - North America 2024 Edition

State of AI in IT 2024

A snapshot of the AI in IT landscape in 2024, presented in partnership with ITSM.tools. Learn what your peers are doing, optimistic, and cautious about while adopting AI in IT.

Stephen Mann
Principal Analyst and Content Director, ITSM.tools

Note from the author

This survey is a great snapshot of where North American IT organizations are with the adoption of AI, with most still assessing the opportunities and understanding what’s involved.

However, the most interesting survey insight is the high level of end-user free AI tool use, with close to three-quarters already using free AI tools such as ChatGPT to help improve their productivity.

It’s an unpreventable iteration of the traditional “Shadow IT”issue (and opportunity) that IT organizations need to carefully manage in 2024

Insights from:
Roy Atkinson
CEO, Clifton Butterfield
James Finister
AI Ethicist
John Custy
ITSM Consultant, JPC Group
Syachfri Tjhia
Head of IT, Catalyst Education
Alan Berkson
Founder, Intelligist Group
Phyllis Drucker
Service Management Thought Leader
Doug Tedder
Principal, Tedder Consulting

Foreword

As a follow-up to a global 2023 IT service management (ITSM)-focused survey on artificial intelligence (AI) adoption in IT organizations that showed significant growth in AI interest and use, two separate surveys focused on the state of AI adoption in North America were conducted in November 2023.

The first survey posed AI-related questions to IT professionals, and the second to end-users.

The AI adoption state

It can be hard for organizations to understand whether they’re ahead of or behind the AI adoption curve. To help, the first “core” survey question asked the respondents to describe their organizations’ current AI adoption state.

  • The majority of respondents (58%) said their organizations were still in the early stages of AI adoption – either planning (20%), early exploitation (24%), or pilot projects (14%).
  • 27% of respondents have progressed past the AI pilot projects stage to have functioning AI capabilities in IT.
  • Only 11% of respondents stated that their organizations have no plans for AI adoption in IT.
What stage best describes your organization’s current adoption of AI for IT?

Although, the selection of some of these options might have been dependent on respondent interpretation. Eg. whether the addition and use of AI-enabled capabilities within existing SaaS software was considered AI adoption.

Getting started in a familiar environment with AI applications built into ITSM tool capabilities makes it easier for administrators to gain experience working with AI and can help IT make a business case for other, more costly options.

Consider this an easy call to action: start where you are. Learn what your current ITSM tool can support using AI and leverage those capabilities, then grow into other areas.
Phyllis Drucker
Author, Keynote Speaker,
Service Management Thought Leader

The origin of IT’s AI adoption needs

While IT’s adoption of AI-enabled capabilities might seeminevitable, it’s interesting to understand the origins oforganizations’ investments.

The IT team was the originator of AI adoption activities innearly two-thirds of organizations (61%), with the C-suiteaccounting for one-quarter (24%).

When the “Not applicable” and “Other” responses are removed, the “inflated” percentages are 72% and 28%, respectively – which better shows the difference between these two drivers of AI adoption in IT.

If your organization is investing or planning to invest in AI initiatives and tools, where did the requirement originate?

Looking beyond these full sample figures, organizations where the C-suite had originated the need for AI had progressed less than those where the IT team had done this.

AI resource allocation

The lack of appropriate AI skills and resources is often cited as a barrier to AI Adoption. A surprising 28% of respondents stated that their organizations don’t have anyone specifically focusing on AI.

However, the majority of these organizations (94%) hadn’t progressed with AI in production. At the other end of the spectrum, 65% of organizations have two or more people focused on AI, and another 7% have AI-focused resources within a separate function.

How big is your (dedicated) AI team within IT?

Looking beyond these full sample figures, where the AI team sits within another function, close to two-thirds (61%) of the organizations were at the Partial Integration stage, with the remainder in Pilot Projects and Early Exploration. None were at Full Integration.

IT budget spend

The extra costs associated with AI adoption are inevitably a barrier to its adoption. However, more than half (60%) of respondents stated that their organizations are spending at least 5% of their IT budgets on AI. When the data is limited to only the organization with AI spend, this is 74%.

Looking beyond these full sample figures, 87% of the organizations with no IT budget allocation don’t have anyone specifically focused on AI. None have either a Partial Integration or a Full Integration.

What percentage of the IT budget is allocated to AI initiatives?

The perceived benefits of AI

As with any new technology, it’s important to understand its benefits to business operations and outcomes.

The three most stated benefits of AI adoption in IT are:

  • Data analytics and synthesizing insights (45%)
  • Chatbots for self-service adoption (38%)
  • Improving employee experience (34%)
  • Workflow automation and optimization (34%)

These top benefits were as expected, and only 7% of them didn’t think that AI would benefit their organizations much.

What benefits do you anticipate or have realized through AI?
Remember that these are only benefits if they add value. Bad AI-driven analytics can and will kill companies.
James Finister,
AI Ethicist

The AI adoption timeframe

For the survey question related to the speed with which IT organizations would adopt AI, it’s important to appreciate that it could be interpreted and responded to in two distinct ways – the respondent could answer for their organization (and potentially others they know), or they could answer for the IT industry as a whole.

The highest scoring response (before rounding) was that AI will take 1-2 years to become common within IT teams (28.4%). However, 27.6% of respondents believed this was already the case – logically, this is likely to reflect the state of AI adoption in a finite number of organizations rather than the IT industry as a whole.

How long do you think will it take for AI to become common within IT teams?

Only 20% of respondents thought that AI would take over two years to become mainstream in IT.

AI adoption barriers

A common challenge or barrier to AI adoption has long been the availability of suitable people and expertise. This was joint fourth in this survey, behind customer data security (42%), additional cost (39%), and inaccuracy or inconsistency (33%), and tied with governance and compliance (28%). The lack of fit-for-purpose AI tools was stated by only 10% of respondents.

The customer data security challenge was most prevalent in banking and finance, software, manufacturing, and retail and e-commerce. The same was true for the additional cost challenge, too.

What are the concerns or barriers to AI adoption for you?
I find it difficult to believe resistance to change is low (at 18%); this relates to both IT staff and customers.
John Custy,
ITSM Consultant, JPC Group

AI no-go areas

While AI is seen as beneficial to IT organizations, the final “core” survey question also asked about the areas that respondents would not like AI to penetrate.

The three top most stated areas were:

  • Ethical and legal decision-making (41%)
  • People management (30%)
  • Customer relationship management (29%)

5% of respondents were happy for AI to penetrate all of the area options.

This is another question where the potential for response misalignment needs to be recognized. Particularly whether the respondents considered their answers in the context of AI operating with minimal human intervention or augmenting existing human activities and capabilities.

Which areas of the business would you like AI to not penetrate?
It’s interesting to see no-go areas such as ‘Handling sensitive business data or intellectual property.’ I actually see these as an opportunity for AI in general, particularly in the cybersecurity space.

AI should be leveraged to learn what constitutes sensitive data or IP and perform protection automatically (eg. the encryption of information) to lower business risks in the event of data breaches. We already do it.
Syachfri Tjhia
Head of IT, Catalyst Education

IT support contact frequency

81% of the respondents in the survey sample had contacted their IT support team at least once in the past six months.

25% of the respondents had contacted IT support three or more times and only 19% of them had never contacted IT.

Roughly 8% of the respondents didn’t have an IT support team. The data points shared above take into account only the ones who did.

How many times have you contacted IT support in your company in the last six months?
End-users are embracing interacting with AI-enabled technologies to support their IT issues – and they want more.

The survey findings challenge the opinion that end-users wouldn’t find success in interacting with chatbots, and indicate how well chatbot capabilities have evolved over the past few years.
Doug Tedder
Principal, Tedder Consulting

Preferred channels for contacting IT

The most common (primary) methods of accessing support are:

  • Email (26%)
  • Phone call (25%)
  • Chatbots (20%), with 80% of these being AI chatbots

Interestingly, the IT support portal only accounted for 6% of primary contact methods – perhaps a sign of question interpretation and its use for service requests but not for issue handling.

How do you (most frequently) contact IT support in your company?

Looking beyond these full sample figures, the respondents who stated they had contacted IT support three or more times in the last six months were less likely to call (only 17% versus 25% for the full sample).

Companies can focus on chatbots integrated with the corporate IM platform (like Slack and Teams) to increase the ability of employees to self-resolve common issues and to interface with the service portal conversationally.

This approach improves their experience, adds a support channel, and increases portal adoption by making it easier to use.
Phyllis Drucker
Author, Keynote Speaker,
Service Management Thought Leader

Desired IT support changes

Only a quarter (26%) of survey respondents were happy with how their IT support team worked. The most common improvement requests were:

  • Confirm if my issue is resolved before closing my ticket (31%)
  • Offer 24/7 support (30%)
  • Give me more options to contact support (23%)
What would you like your IT team to start, or stop, doing?
This shows how IT has not addressed support well, and IT portals are seen more as request portals.
John Custy,
ITSM Consultant, JPC Group

When the “happy” respondents are removed from thesample data, these percentages increase to:

  • Confirm if my issue is resolved before closing my ticket (42%)
  • Offer 24/7 support (41%)
  • Give me more options to contact support (31%)

Looking beyond the full sample figures, the respondents who stated they had contacted IT support three or more times in the last six months were far less likely to be happy with IT support (only 13% versus 26% for the full sample), with the largest improvement deltas for this group.

Interestingly, the largest deltas were for the three highest “full sample” improvement areas along with shortening the response and resolution times. At the other end of the delta spectrum, the high-contact users weren’t any more interested in fixing their own issues or knowing where they are in the process/queue than the full sample.

Response
Full Sample
High Use
Delta
Confirm if my issue is resolved before closing my ticket
31%
45%
+14%
Give me more options to contact support
23%
32%
+9%
Give me the option to talk with an AI chatbot
18%
24%
+6%
Let me fix IT issues myself
12%
13%
+1%
Offer 24/7 support
30%
39%
+9%
Show me they care about my perspective
15%
18%
+3%
Shorten resolution times
20%
30%
+10%
Shorten response times
21%
31%
+10%
Stop trying to pass the buck or transfer me around
12%
15%
+3%
Tell me how long I have to wait for a response
17%
21%
+4%
Tell me when my issue will be fixed
19%
24%
+5%
Tell me where I am in the process/queue
13%
13%
-
Comparison: What would you like your IT team to start, or stop, doing?
Generative AI will start a new chapter on how information is served to end-users. People want everything instantly these days, and this applies to having their questions answered or issues resolved.

Having the technology to enable this 24x7 will be a game changer for many support teams, freeing up their time to be more productive in other areas.
Syachfri Tjhia
Head of IT, Catalyst Education

AI usage by IT

While it’s appreciated that end-users might not know whether their IT team is using AI for support or not, the results of this survey question were positive in favor of AI use. 36% were happy with their IT teams’ use of AI, and another 19% would like them to use it. When the “Don’t know” responses are removed, this is 46% and 25%, respectively, and 71% in total.

Looking beyond these full sample figures, the respondents who had contacted IT support three or more times in the last six months were far more likely to have access to helpful AI (43% versus 36% for the full sample).

While correlation does not imply causation, this could be indicative of making IT contact easier resulting in greater IT support use.

Is your IT team using AI (chatbots, etc.) for support?

End-user AI usage frequency

75% of survey respondents stated that they’re already using free AI tools like ChatGPT for their work. Close to half (46%) of the respondents use these tools at least once a week.

Looking beyond these full sample figures, the respondents who stated they had contacted IT support three or more times in the last six months were far more likely to use AI tools on a daily basis (28% versus 18% for the full sample).

Roughly, how often do you use ChatGPT or similar free AI tools for your work?

End-user AI use cases

We asked end-user respondents what they used free AI tools for.

The most common AI tool use cases for the full sample were:

  • Creative ideation or problem-solving (34%)
  • Email drafting or editing (30%)
  • Content creation or editing (26%)

Interestingly, 72% of the survey sample had heard of ChatGPT versus the next highest option, Bard, at just 4%.

What do you use the AI tools for?

AI usage perspective

39% of survey respondents weren’t concerned about their organizations’ use of AI. When the “Don’t know” and “We’re not using AI” responses are removed, this increases to 52%. This puts the “No, I’m not concerned” response marginally ahead of those related to concerns about AI use:

  • Yes, because the use of AI is limited (21%)
  • Yes, because we’re using it too liberally (18%)
  • Yes, because it’s hindering not helping (9%)
Are you concerned about how your organization is using AI?

However, the highest of these concern areas is related to the limited use of AI. When this 21% is added to the 52%, close to three-quarters of end-user respondents can be considered to be “pro AI”.

AI no-go areas for end users

This is the only survey question that was asked to both IT would you like AI to not penetrate? professionals and end-users.

The top three most-stated areas were:

  • Ethical and legal decision-making (39%)
  • Customer relationship management (36%)
  • People management (33%)
Which areas of the business would you like AI to not penetrate?

The comparison of end-user and IT professional would you like AI to not penetrate? responses found them to be similar as shown in the table. End-users were, on the whole, slightly more against AI use than IT professionals, including in two of the shared top three areas.

End-users were also more concerned about using AI for handling customer data, talent acquisition, performance management, and quality control and accountability.

11% of respondents were happy for AI to penetrate all of the potentially problematic area options. That’s more than double the percentage of IT professionals.

Response
IT Pro %
End user %
Delta
Customer relationship management
29%
36%
+7%
Ethical and legal decision-making
41%
39%
-2%
Handling customer data
26%
32%
+6%
Handling sensitive business data or intellectual property
26%
23%
-3%
High-level strategic planning
26%
23%
-3%
People management
30%
33%
+3%
Performance management
20%
25%
+5%
Quality control and accountability
24%
28%
+4%
Talent acquisition
20%
25%
+5%
None of the above
5%
11%
+6%
Comparison: Which areas of the business would you like AI to not penetrate?
The AI no-go areas, where IT users and leaders see some resistance to adoption, actually represent the role of people in an AI assisted world.

Ethics, relationship management, and strategic decision making require empathy, critical thinking, creativity, and problem solving skills. These are distinctly human capabilities.

That’s the future of work.
Alan Berkson
Founder, Intelligist Group

Conclusion

We believe that the two discrete data sets targeting IT professionals and end users do offer valuable and holistic insights into the usage of AI. While most organizations are still in the early stages of AI adoption, IT leaders do realize the tremendous benefits of adopting AI in IT. Overcoming the common barriers to using AI in IT operations, such as AI inconsistencies or security adherence, can help companies bridge the gap between the estimated value of AI to realizing its actual benefits in their IT environment.

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Schedule a briefing with our team of experts to learn how AI can solve problems and inefficiencies in IT service management and automation.