Transforming GBS with GenAI: A New Era Of Innovation & Efficiency

Technological innovations continue to reshape service delivery, and few more so than Generative AI (GenAI). Building on last year's research, SSON Research & Analytics (SSON R&A) recently surveyed 100 global service delivery executives to gauge GenAI's impact. In just a year, we've seen how rapidly GenAI has been adopted and integrated into shared services. According to our recent research, nearly 60% of the market recognizes the transformative impact of GenAI on shared services and service delivery. This article explores the key applications, benefits, and future outlook for GenAI in Global Business Services (GBS).

A New Era of Adoption and Application

Generative AI has quickly become a cornerstone of shared services. Last year, 51% of shared services had not yet adopted GenAI solutions. Today, nearly 80% are using GenAI tools to optimize areas such as process management, customer service, data analysis, IT support, and HR services. The efficiency gains are significant—streamlined processes, enhanced customer interactions, improved data insights, and faster, more accurate content generation.

A New Era of Strategic Implementation: From Ad-Hoc to Embedded

We see a fairly standardized and strategic approach. While over half of shared services are implementing GenAI for specific business processes, 44% are using an ad hoc approach, employing tools like ChatGPT, CoPilot, and Bard for everyday tasks. Although ad hoc use offers agility, the real gains will come from embedding GenAI into core processes, unlocking its full potential for service delivery.

A New Era of Intelligent Automation at Work: Key Drivers and Challenges

Introducing GenAI is not without its challenges. The biggest hurdles include access to high-quality data and the lack of expertise within teams to deploy GenAI effectively. Additionally, 41% struggle to identify opportunities with significant ROI, while others face integration challenges with existing systems. Interestingly, concerns like job displacement or cultural resistance rank low on the list, signaling readiness for this transformation.

A New Era of Service Delivery and Employee Experience

The impact of GenAI on employee experience is noteworthy. 80% of respondents report at least moderate improvements, with over a third seeing significant enhancements in workload reduction and skill development. These results underline the value of investing in GenAI for both operational efficiency and employee satisfaction.

A New Era of Promise: Expectations vs. Reality

When asked about industry expectations for GenAI, shared services leaders primarily anticipate enhanced automation. A third of the market sees potential for better decision-making insights, while others are looking for deeper integration with existing systems. Surprisingly, less than 10% expect improved personalization—an area where GenAI excels and one that may see future growth.

A New Era of Privacy Concerns Leading to Global Policy

Data privacy remains a top concern. Our research shows that nearly 80% of shared services have implemented global data protection policies, and 76% have established controls over access and usage. More than 60% have policies related to intellectual property, while about half allow customers to opt-out of data usage, highlighting proactive steps in addressing privacy issues.

A New Era of Results

The real impact of GenAI lies in the results. Nearly two-thirds of the market report reduced manual effort—a continuation of automation trends. Additionally, 54% note faster service delivery, and 51% report improved accuracy. These improvements in productivity, speed, and quality align with key shared services performance metrics, which you can explore in our Metric Intelligence Hub (MIH). Access over 140 metrics and benchmarks, including automation-specific KPIs, on the MIH platform.

Embracing the New Era with GenAI

GenAI is not just a technological tool; it's a catalyst for transforming Global Business Services. Strategic implementation can drive significant efficiency gains, enhance service delivery, and elevate the employee experience. However, to fully harness its potential, organizations must address key challenges and ethical considerations.

What's Next?

Join SSON Research & Analytics for our upcoming webinar, Generative AI in SSO & GBS: Top 5 Applications

Download the latest report on How GenAI Can Augment the Conventional Shared Service Model

Explore the aggregated benchmarking results on automation performance from the Top 20 Most Admired Benchmarking Study.

Congratulations again to the 2024 Most Admired SSO/GBS Organizations!

Until Next Time!

Naomi Secor, Global Managing Director, SSON Research & Analytics

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