Information Technology service providers (ITSPs) are uniquely positioned to assist enterprises in exploring and implementing generative artificial intelligence (GenAI) technologies, according to a new report from data and analytics firm GlobalData. 

According to the report, Generative AI Watch: IT Services Providers Invest to Help Customers Implement GenAI, 2024 Update, emphasises how AI, particularly GenAI, is disrupting the IT services market, with the ability to leverage this technology becoming a key competitive advantage.

Rena Bhattacharyya

GlobalData’s Chief Analyst for Enterprise Technology and Services, Rena Bhattacharyya, stressed the importance of ITSPs staying ahead in the rapidly evolving GenAI landscape. 

“The influx of new language models, including smaller and specialised ones, presents both opportunities and challenges for customers who need guidance on model selection while avoiding vendor lock-in,” she says.

The report underscores the significant impact of AI and GenAI on ITSPs, offering them opportunities to differentiate their services, enhance productivity, and potentially scale their operations without a proportional increase in human resources. 

It says that ITSPs can leverage these technologies to build innovative solutions with customers and streamline their service delivery.

Siow Meng Soh, Research Director for Asia Pacific at GlobalData, highlighted the proactive steps taken by ITSPs, noting that many have developed out-of-the-box solutions, frameworks, and platforms to help enterprises deploy AI responsibly. 

Siow Meng Soh

“By integrating AI into workflows and industry-specific solutions, ITSPs are becoming more embedded in their clients’ businesses, thus strengthening strategic relationships,” says Soh.

The report also encourages enterprises to anticipate working within a multi-model GenAI environment. 

Organisations may need to reevaluate their cloud strategies to accommodate various AI models and vendors. 

The statement adds that efficient data management is identified as a critical factor for successful AI deployments.

“Insufficient attention to data management is hindering GenAI project deployments and limiting AI scalability. ITSPs are well-placed not only to assist with GenAI initiatives but also to help customers establish effective data management strategies, a crucial foundation for successful AI adoption,” adds Bhattacharyya, pointing out a significant hurdle faced by many organisations.

The report concludes that as GenAI continues to evolve, IT service providers are set to play a central role in driving its implementation across industries.