ISG Launches Suite of Applied AI Advisory Services
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Artificial Intelligence (AI) is rapidly transforming the business landscape and the launch of advisory services by Information Services Group (ISG) to facilitate AI adoption reflects a strategic move to capitalize on this growth. The projection of the AI-related managed services market reaching $175 billion by 2030 indicates a significant expansion within the sector. Enterprises integrating AI technologies can gain competitive advantages through improved efficiency, innovation and data analysis capabilities.
For investors, this development suggests potential growth in ISG's market share and revenue streams. The engagement of prominent clients, including those in hospitality, manufacturing, insurance and government, demonstrates confidence in ISG's expertise and could signal future partnerships and increased demand for their services. The focus on Generative AI, a subset of AI that can create new content, highlights the firm's alignment with cutting-edge technology trends, which may appeal to forward-looking investors.
ISG's initiative to offer AI advisory services represents an investment in a high-growth area that could enhance the firm's financial performance. The involvement of large corporations in AI engagements with ISG suggests that these services could become a significant revenue driver. As AI adoption grows, ISG's early positioning in the market may lead to a first-mover advantage, potentially resulting in higher valuation multiples.
However, the successful monetization of these services will depend on ISG's ability to differentiate itself from competitors and demonstrate clear ROI to clients. Given the long-term forecast until 2030, investors should consider the risks associated with technological advancements and market saturation. Monitoring ISG's quarterly financials for incremental revenue contributions from these services will be essential to assess the impact on the company's bottom line.
The adoption of AI at scale presents technical and strategic challenges for enterprises and ISG's new suite of advisory services aims to address these complexities. By focusing on Generative AI, ISG is targeting a niche yet rapidly evolving area of AI that has applications in content creation, design and decision-making processes. The strategic advice and practical applications offered by ISG could drive innovation and operational improvements for their clients.
From a technological perspective, the scalability and integration of AI into existing systems are critical factors for success. ISG's approach will likely involve assessing clients' IT infrastructure, proposing AI solutions that align with business goals and ensuring compliance with data privacy and governance standards. As the technology matures, ISG's ongoing support and updates could become integral to clients, fostering long-term relationships and recurring revenue.
Firm plans to leverage its longstanding expertise in technology sourcing and governance to help enterprise clients adopt AI at scale
“Artificial Intelligence, specifically Generative AI, is the next big thing in technology,” said Michael P. Connors, chairman and CEO of ISG. “Gen AI has risen to the top of the agenda for the world’s largest corporations. Business leaders are already seeking our advice and guidance on the practical applications of this technology, as well as longer-term strategies for scaling AI as the technology grows and matures.”
ISG Research forecasts the global market for AI-related managed services should reach
Organizations already working with ISG on AI engagements include a global hospitality and entertainment company, a major
“ISG has always been at the forefront of guiding our clients through the complexities of adopting technology at scale,” said Steve Hall, ISG president and newly appointed as the firm’s first chief AI officer. “Our expansion into applied AI strategy and advisory is our next great leap forward, ensuring businesses can harness AI to drive unprecedented value into every aspect of their operations.”
Hall noted clients trust ISG for its independent advice and long-held expertise in technology sourcing and governance. “Typical of the feedback we’re getting from our clients is this statement: ‘We wanted to get ISG in right at the start of our journey so we can cut through the hype and do this right the first time. This is moving so fast we need to avoid any missteps.’”
ISG’s Applied AI Advisory services help clients assess their AI readiness, identify practical use cases, experiment with proofs of concept, create an AI strategy, and establish a business case for investment. ISG also helps clients select the right business partners and build a cognitive infrastructure to support AI at scale. Finally, ISG provides training and organizational change management, a strategy realization office, and governance through a proprietary AI control plane to help clients mitigate risk and maximize ROI from their AI investments.
ISG was the first sourcing advisory firm to establish a reference architecture for applied Generative AI when it published a September 2023 global study of enterprise use cases. An analysis of the use cases shows AI can lower the cost of IT operations by 30 to 58 percent.
The use cases range from personalizing customer experiences at scale and optimizing supply chain operations to enhancing decision-making through predictive analytics and pioneering the development of new products and services.
The ISG study found that 85 percent of enterprises believe investment in generative AI over the next two years is important, but only a small percentage are achieving tangible results today.
Hall said ISG is looking to help clients move beyond the hype and identify practical applications of AI that can lead to enterprise-wide adoption.
“Our goal is to empower businesses to define their AI-driven future, find the perfect partners to make it a reality, lead change in their organizations, and realize tangible value at a scale,” he said.
Hall noted that successful adoption of AI at scale will require the use of an “AI control plane” to oversee and manage the deployment of artificial intelligence systems.
“An AI control plane encompasses robust security measures to safeguard against data breaches and unauthorized access, ensuring the integrity and confidentiality of sensitive information,” said Hall.
“It also ensures AI operations adhere to legal and ethical standards and avoid biases, protecting users' rights and promoting fairness, while providing oversight of AI-related expenditures and resource allocation, enabling efficient budget management and cost optimization.”
For more information about ISG’s Applied AI Advisory services, visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240104514607/en/
Press:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
Source: Information Services Group, Inc.
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