Uncertainty and consumer reluctance are currently affecting many companies. As a result, cost reduction is high on the agenda. While the focus is often on large budgets, a real revolution is taking place in their shadow: through Generative Artificial Intelligence (GenAI), services such as software development or marketing are experiencing massive productivity gains. Buyers of professional services should take advantage of this development.

IT development: how to optimize efficiency

The BCG analysis concludes that productivity improvements of up to 45 % are possible for IT development, when GenAI takes over simple programming tasks such as error search and correction, testing, documentation and the harmonization of different coding languages. GenAI tools are now also very reliable at writing prompts.

Sundar Pichai, CEO of Google’s parent company Alphabet, announced in the group’s quarterly report at the end of October 2024 that GenAI already generates over 25 % of new code and is therefore indispensable for Google and Alphabet’s software development. Of course, the group has excellent specialists, its own tools and enormous investment resources.

However, companies that are not part of Big Tech can also benefit from the AI revolution thanks to the accelerated pace of development and better service from their service providers. Buyers of IT services should clarify with existing suppliers how they use GenAI and what plans they have for further utilizing these tools. In view of the rapid development, regular competitor screenings are useful, since providers are likely to modernize at very different speeds. Long-term collaborations are advisable if the service provider has its own precise roadmap for the use and further development of GenAI in its services and aspires to be an early
adopter.

Marketing creation: GenAI as a data analyst and designer

In a world where artificial intelligence is increasingly shaping our daily lives, personalized customer targeting is more than just a trend – it is a crucial success factor in
marketing. Through the targeted use of GenAI, companies can tailor their communication to the individual needs and desires of their customers. This makes it all the more important for marketers to find the right agencies for the job. Marketing buyers are familiar with the bon mot attributed to Henry Ford: “Half the money I spend on advertising is wasted; the problem is, I don’t know which half.” GenAI can ensure that the “wasted” portion is far lower thanks to in-depth analysis of customer data – if the service provider is able to interpret the available data correctly.

GenAI tools can also provide valuable support in the continuous optimization of marketing campaigns by conducting A/B tests, customizing content and improving targeting. GenAI is even being used in creative work, such as in text creation or in the production of images and videos. While the first attempts still contained errors – such as people with four fingers or buildings distorted in perspective – programs like Midjourney are now able to create complex and realistic imagery.

Efficiency gains of 20 to 40 % are acchievable for marketing using the new tools. Since the cost pressure on service providers in this segment has always been high, it can be assumed that a large number of agencies are already using the solutions or at least testing them. Buyers need to understand what their service providers can actually achieve with the help of GenAI in creation and automation in order to retain the right partners.

Customer service: the chatbot is just the beginning

24/7 availability, endless patience and kindness, 100  % correct answers to standard questions: the chatbot is the ideal customer service employee, especially since it is foreseeable that filling vacancies with human service employees will become increasingly difficult. Once the AI assistant has been installed, it works reliably and cost-effectively. That is why we expect significant savings in this product group in the near future. However, the changeover initially requires considerable investment, as the IT infrastructure and GenAI technology have to be adapted to the individual customer’s needs and employees have to learn how to use them.

Companies should work closely with their service partner to achieve this. A long-term commitment is also recommended because it allows the customer to benefit from continuous improvements in both service quality and cost efficiency. Our case study shows how it can work.

Case study: Optimizing IT services for employees

A global pharmaceutical company has outsourced IT support for its employees to a service provider. An initially low level of automation in the processing of inquiries – there was no chatbot, only human employees with varying levels of expertise – and around 20 serious
technical incidents per month not only impaired the performance of the employees. In addition, the existing structure also led to great dissatisfaction with the service. The company and service provider agreed on a five-year contract with specific steps to significantly
increase user satisfaction, solve problems in a third of the usual time, and reduce the number of serious cases to three instead of 20 with the help of GenAI.

By using GenAI and advanced self-service features, the company was able to achieve the agreed annual KPIs and save a triple-digit million amount at the same time. Intelligently structured incentive models helped to ensure that the service provider remained on the chosen development path and benefited from the joint success. //