Freshworks benchmark report: How generative AI is redefining ITSM
From AI to automation, 7 KPIs that define best-in-class ITSM
Freshworks’ annual Freshservice IT Service Management Benchmark Report 2024 reveals how generative AI and industry-specific trends are reshaping performance standards in IT service management—helping leaders choose the most suitable tools and capabilities to maximize value and generate tangible, AI-driven results.
Drawing insights from anonymized customer data from 9,400 organizations, 14 industries, and over 100 countries—as well as analysis of over 167 million service tickets —this year's report scrutinizes seven critical performance benchmarks in IT service management. Detailed analysis of these key performance indicators (KPIs) shows where and how organizations are performing with service delivery efficiency and effectiveness and offers actionable insights for improvement.
The new catalyst in service performance, of course, is generative AI. The report also shows how the technology represents a seismic shift for ITSM, including what kinds of opportunities it is unlocking for innovation, efficiency, and strategic advantage.
“Enhancing employee experience remains a pivotal focus for IT leaders globally,” says Prasad Ramakrishnan, CIO at Freshworks. “The deployment and adoption of generative AI capabilities, including self-service options and agent assistance tools, represents a significant opportunity to enrich employee interactions with their ITSM solution and sets a new standard for operational excellence within IT services.”
Here are several key takeaways from our findings:
Workflow automation boosts efficiency: Organizations that automate workflows see a significant 27% reduction in average resolution time (ART), facilitating quicker resolution of employee queries with a first-contact resolution (FCR) rate of 77%.
Gen AI transforms self-service experience: Generative-AI-powered self-service initiatives result in impressive ticket deflection rates of 53%, encouraging organizations to tackle recurring issues proactively and redirect agent efforts to more strategic tasks.
Gen AI assistance streamlines service delivery: Smart assistance powered by generative AI streamlines service delivery by automating repetitive, low-value tasks, leading to a remarkable 27% improvement in response time and 35% faster ticket resolutions.
Chat leads the way in faster response: Collaboration channels like Microsoft Teams and Slack support swift solutions, with assignments typically occurring within six minutes. These channels also boast a 45% faster ticket resolution rate compared to our benchmark, maintaining ideal SLAs (100%) with a first-contact resolution rate of 92%.
Integrations augment service desk performance: Organizations integrating third-party applications achieve a 23% improvement in average resolution time, while the first-contact resolution rate rises to 77%. Continuous integration with external applications correlates with enhancements across various KPIs.
As the findings suggest, gen AI is transforming the way companies perform. In situations where the stakes are high, precision is key, and embracing authentic AI-powered solutions and tools can help CIOs elevate operational excellence, enrich employee experiences, and drive tangible outcomes.
Check out the full report: Freshservice IT Service Management Benchmark Report 2024.