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The IBM Institute for Business Value, in collaboration with Oxford Economics, conducted a survey covering 1,000 business executives worldwide, focusing on AI-enabled AMS (application management services). The survey found that 91% of enterprises expect to adopt AI-enabled AMS within a few years, but only 3% have truly made progress. 86% of AMS contracts are still compensated based on labor input and ticket volume; AI's reduction of manual input instead lowers revenue, and more than 70% of enterprises (76% in China) consider this a major constraint. The report recommends restructuring contracts, redesigning workflows, and clearly defining where released resources should be reinvested.
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IBM Consulting's Hou Junwei: AI reduces the work, so why isn't the money rolling in?Developments
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IBM Institute for Business Value, in collaboration with Oxford Economics, conducts AMS research
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Oct 30
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IBM Consulting's Hou Junwei: AI reduces the work, so why isn't the money rolling in?
A survey of 1,000 global business executives by the IBM Institute for Business Value and Oxford Economics found that 91% of enterprises expect to adopt AI-enabled AMS within a few years, but only 3% have actually made meaningful progress. 86% of AMS contracts still pay based on labor input and ticket volume, so AI's reduction of manual input actually lowers revenue; more than 70% of enterprises (76% in China) consider this the main constraint. The report recommends restructuring contracts, redesigning workflows, and clearly defining where freed-up resources should be reinvested.