How Public Sector Procurement Should Think about AI
Technological innovation is no longer confined to specific industries or market niches. And public administrations can no longer be mere spectators.
Artificial Intelligence
AI consulting to navigate the ecosystem and scale & govern enterprise-class AI solutions.
Latest findings: Adopting and scaling AI Our solutions: Making every AI move count Best practices: AI efficiencies drive 30-58% savingsAdopting & Scaling AI
Our research shows that scaling generative AI from pilots to full-scale production remains fraught for enterprises – and now agentic AI must be adopted too.
RESEARCH REPORT
State of Enterprise AI Adoption
Access in-depth AI adoption and market data, including what enterprises are trying, where they are getting value and what our findings suggest about the best practices needed to increase adoption, scale and return on investment.
Download the ReportBuilding an Enterprise Measurement Framework for Agentic A
Agentic AI often stalls at the pilot stage. We share a framework to align your agentic AI investments to strategic intent, measure performance of agents in business terms and enable continuous improvement.
“Through 2026, model governance will remain a significant concern for more than one-half of enterprises, limiting the deployment, and therefore the realized value, of AI and machine learning models.
Matt Aslett
Director of Research Analytics and Data
Enhance Data and AI Strategy
ISG served as a strategic advisor, fostering a collaborative bridge between the business and its technology data team, and steering a project aimed at unlocking significant value from data across key business domains.
Read More
Is your firm struggling to get value out of your predictive, agentic and generative AI investments?
Get to the next level with ISG Explore more insightsHow We Can Help:
Making Every AI Move Count
AI is everywhere, and spending is expected to continue growing. But many organizations are failing to translate investments into tangible, repeatable business value. Pilots stall. Hype clouds judgment. Value remains elusive. It's not about infinite trial-and-error PoCs - it's about making the right moves from the start.
Whether it's navigating the AI ecosystem, revamping your existing contracts for efficiency gains or addressing your data foundations and organizational readiness, ISG is your independent advisor to deliver on the promise of applying AI at scale.
Design AI Value at Scale
AI Strategy
Or is it just business strategy at this point? We help you align your AI ambitions with enterprise priorities.
Data Foundation
Our research shows that poor data foundations are the #1 reason AI initiatives fail to deliver business value. We help you build a scalable, AI-ready data foundation.
Use Case to Outcome
Stuck between AI hype and POC purgatory? We help you design, source and adopt the right use cases, infrastructure and processes to enable your AI investments at scale.
OCM & Value at Scale
A lack of organizational readiness is the #2 reason AI fails to deliver value. We provide change management and value realization governance to ensure optimal results.
AI Strategy
What would your organization look like if AI was built in to the core? We help reimagine your organization’s future state and build an actionable plan, including operating model design, to get you there. We align your leadership on a vision of success, and then we work with your unique legacy footprint to plan for the right cognitive infrastructure and data foundations needed to enable your AI investments at scale.
Data Foundation
We'll diagnose your AI readiness, helping you understand where your data, people and processes stand and where they need to go. Then we'll help you design the right AI foundation, including adaptive data operations that support both innovation and scale. Most importantly, we help you drive real outcomes by connecting pilots to business value, embedding AI into workflows and tracking impact over time.
Use Case to Outcome
We use value framing workshops and detailed strategic roadmaps to build a high-impact use case portfolio and action plan. Leveraging our proprietary sourcing and contracting methodologies, we curate the provider ecosystem to match the right provider to each use case, ensuring delivery partner fit and incentivization. Remaining independent, we use a strategy realization office framework and value tracking dashboards to ensure delivery of use cases in parallel.
OCM and Value at Scale
From the enterprise-wide change management needed to accelerate adoption to the governance needed to ensure long-term performance, ISG has the tool set to help you achieve value at scale. Leveraging continuous improvement, adaptive organization design and scaling principles, we've built a repeatable delivery model designed to turn AI aspirations into business impact.
Add AI to Existing Operations
AIOps Benchmark
Get an ITO and BPO fairness assessment to identify AI savings, modernize your contract and get the benefit of your partner’s AI efficiencies.
Sourcing and Contracting for AI
Navigate provider pricing and terms for AI, from tokenization to inquiry-based models, and access the latest in AI contracting best practices.
AI Cost Optimization
Review your existing IT and business operations and spend to identify how AI can drive a faster, cheaper, better and/or more efficient operating model.
AI for GCCs and Business Operations
Find out how to infuse AI into your global capability center, your contact center, or your HR, finance & accounting, and/or procurement operations.
AI Cost Optimization
Today, remaining competitive requires AI-driven cost transformation. We address three levels of cost optimization, identifying quick-win and deep-potential opportunities and working toward both simultaneously.
- Cost trimming: cutting external spend, esp. network, software and contract labor
- Cost substitution: swapping one cost center for a more economical model, like outsourcing
- Cost transformation: changing the operating model to achieve cost agility and transparency
GCCs, Contact Centers and Business Operations
We know what it takes to transform your general and administrative processes, your global capability center and your contact center with AI to deliver new efficiencies and superior business value. Leverage our research, benchmarks and data to stay market-aligned, our sourcing expertise to find and contract with the right partners, and our operating model and governance expertise to optimize your processes and results.
AIOps Benchmark
Get an ITO and BPO fairness assessment to benchmark your contract costs against provider savings from AI. We quickly provide:
- Maturity and Readiness Assessment: Evaluates your environment for AIOps adoption and the potential impact from your service provider.
- Price Analysis: Reviews your current contract to assess whether you are achieving market-aligned benefits observed in recent sourcing transactions.
Sourcing and Contracting for AI
We help you select, co-solution and contract with the right provider(s) for your AI strategy, forming strategic partnership(s) that will enable you to transform at scale. Sourcing is more than selecting a provider and completing a transaction. We ensure you get the most value out of your technology investments by addressing the entire sourcing lifecycle, from building and aligning the technology strategy all the way through to governance of the supplier and contract.
AI efficiencies driving 30-58% savings
Our research shows providers are experiencing 30% to 58% cost savings as a result of AI adoption. Are you seeing resulting price savings? Let's talk AI cost optimization.
INDUSTRY SHIFT
How is AI impacting sourcing?
AI is enabling providers to deliver solutions faster, better and cheaper. This is impacting almost all traditional IT managed services contracts. Are your providers passing along cost savings as price savings to you?
- Infrastructure: Look for cost savings around 40% across towers.
- Workplace: The data is showing about a 60% cost savings potential from automation and labor cost reduction.
- ADM: Look for 35% in cost savings, mainly from task reduction, labor cost and automation.
AI in the Contact Center
43% of contact centers have already adopted AI technologies, leading to a 30% reduction in operational costs. But despite these efficiencies, research consistently shows that 75% of consumers still prefer to engage with human agents when dealing with complex issues. So what is AI’s role in the contact center?
Read MoreGenAI and AIOps in Software Development
GenAI in software development leads to substantial productivity gains, estimated at 30-42%. By leveraging AI, machine learning and GenAI, you can enhance and automate IT operations (AIOps). Combining these two ideas is revolutionizing software development.
Read More“By 2027, ITOps software providers must modernize and enhance product offerings to support data lakes, AI technologies and advanced analytics necessary for AIOps to reduce monitoring and increase automation.”
Jeff Orr
Director of Research, Technology Research
