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HDI Service & Support World
April 25-29, 2027
Caesars PalaceLas Vegas, NV
The State of Service Management in 2026

IT Service Management Workforce Crisis: Understaffing and Talent Shortages

The service management landscape faces a critical staffing challenge. 63% of organizations report being understaffed, with 30% experiencing moderate to severe shortages. The pain is most acute at the frontline; 77% struggle to secure qualified Tier 1 and Tier 2 service desk analysts who can balance technical skills with professional customer interaction.

The disconnect? A fundamental mismatch between employer offerings and candidate expectations around compensation, remote work flexibility, and career longevity. Half of service management professionals feel underpaid given their workload and responsibilities, while hiring managers report candidates increasingly view ITSM as an "expiring skill set" in the age of automation.

Organizations are responding by rethinking their talent strategies, from competitive compensation models to creating clearer career pathways, that demonstrate long-term growth potential. Many are also investing in ITSM training programs and service management conferences to develop internal talent pipelines rather than relying solely on external hiring.

AI Integration and Automation: From Buzzword to Business Value

72% of organizations are actively exploring AI to transform their service management operations, though most (43%) are still in the beginning stages. AI chatbots and virtual assistants lead adoption at 49%, followed by automated knowledge retrieval (33%) and intelligent ticket classification (18%).

The promise? Improved self-service options (61%), faster issue resolution (61%), and optimized workflows (50%). A third of organizations have already created new roles or repurposed existing positions to accommodate AI implementation, with another 35% planning to do so within the year.

The reality check: Organizations must balance AI's productivity gains with the need to maintain emotionally intelligent, human-centered service for complex issues. Those making the most progress are taking a measured approach starting with pilot programs, establishing clear governance frameworks, and ensuring their teams understand both the capabilities and limitations of AI tools. Cross-industry conversations about implementation challenges and successes are proving invaluable for organizations navigating this transformation.

Enterprise Service Management: Breaking Down IT Silos

52% of organizations now extend ITSM practices beyond IT to departments like customer service (45%), security (36%), and human resources (34%). The drivers are clear: improved customer experience (58%), operational efficiency (56%), and cross-department collaboration (48%).

Yet 74% of organizations lack a dedicated Service Management Office (SMO) to coordinate these efforts, and 46% cite siloed departments as a major barrier to implementing frameworks like ITIL 4. Knowledge management tops the list of most difficult practices to enforce effectively (37%), followed by IT asset management (31%).

The organizations finding success with enterprise service management expansion share common traits: executive sponsorship, cross-functional working groups, and a phased rollout approach that demonstrates quick wins before tackling more complex integrations. They're also learning from each other's experiences, what works in HR service delivery, what fails in facilities management, and how to adapt frameworks to different departmental cultures.

Technology Complexity and Integration Challenges

While 74% use service management solutions, with ServiceNow dominating at 47% market presence, integration difficulties (29%), over-reliance on manual processes (26%), and poor visibility (26%) remain persistent pain points. Organizations juggle hybrid cloud environments, security applications, self-service portals, and AI tools, creating a complex ecosystem where 37% struggle to use customer interaction data effectively to identify performance gaps.

The technology landscape continues to evolve rapidly, making it essential for service management professionals to stay current on platform capabilities, integration patterns, and emerging solutions. Peer benchmarking and vendor evaluations are helping organizations cut through the noise and identify tools that genuinely solve their specific challenges rather than adding to the complexity.

Strategic Priorities for 2026: Simplification and Growth

Looking ahead, 15% identify simplifying the customer journey as their top priority, while another 15% focus on AI integration and governance. Despite challenges, optimism runs high: 94% approve of their organization's strategic direction, 64% rate their service management maturity at 7/10 or higher, and 37% expect increased technology investment this year.

The workforce is projected to grow, with 34% anticipating headcount increases versus just 12% expecting reductions—a testament to the industry's resilience and forward momentum.

Leadership teams are recognizing that success requires more than just technology investments. 83% say clear communication is essential for leaders, and 48% believe translating ITSM needs to executives is critical. The most effective leaders are developing frameworks for articulating service management value in business terms by connecting ticket resolution times to customer retention, linking automation investments to revenue growth, and demonstrating how ESM expansion drives organizational agility.

Continuous learning has emerged as non-negotiable: 70% identify "constant learner" as the most essential frontline skill. Organizations are building learning cultures through peer knowledge sharing, structured development programs, and creating space for teams to experiment with new approaches. The 33% dissatisfied with current training levels are exploring diverse learning modalities, from hands-on workshops to certification pathways to collaborative problem-solving sessions with industry peers.

Ready to Level Up Your Service Management Strategy?

This executive summary only scratches the surface of the insights, benchmarks, and strategic intelligence packed into HDI's comprehensive research. Dive into the full report to access detailed data on staffing trends, AI maturity models, ITIL 4 implementation challenges, vendor comparisons, and actionable recommendations from 210 service management leaders across 30 industries.

Access the complete "State of Service Management in 2026" report to benchmark your organization, identify competitive advantages, and build a roadmap for sustainable growth in an era of rapid transformation.

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Bridging the Gap: 5 Tips for Cross-Functional Collaboration That Enables AI Transformation

Ask ten executives who owns AI at their company, and you’ll get ten different answers. IT says it’s not their call. Legal gets blamed for slowing everything down. HR figures it’s someone else’s department. Meanwhile, teams are buying tools nobody signed off on, duplicating work and hoping it all sorts itself out. Sound familiar?

Lisa Duerre spent the last year studying why that happens. As part of an applied research project for her leadership consulting collective, RLD Group, she studied where AI adoption breaks down inside organizations, and where it works. The findings from RLD Group’s research helped inform a collaboration on the CONVERSATIONS WORTH HAVING®: The Human Accelerator for Artificial Intelligence Quick Start Guide, which is available as a digital download.

Duerre views organizations through what she calls an I–WE–US leadership framework, defined like this:

  • I: individual judgment and accountability

  • WE: workflows and cross-functional coordination

  • US: governance, decision rights and organizational measures

“All three levels are contributing to the breakdown or the alignment, whether people realize it or not,” Duerre says. “AI is amplifying whatever’s already true in your system. The teams that were disconnected before AI showed up are more disconnected now. The ones that talked to each other are moving faster, together.”

If your company is ready to collaborate better with AI tools, Duerre shared the following tips. Take a look.

Form a cross-functional AI committee

Duerre’s background is in HR, and she says most HR leaders assume AI ownership belongs to IT. It doesn’t, at least not exclusively.

“Ownership needs to sit at the system level,” Duerre says. “Each function carries a piece of it, based on what they do, how well they understand that part of the business and how their work depends on everyone else’s. AI is flattening how we work. You can’t just keep it in your own business unit anymore. You have to look all around you.”

For starters, she suggests building a cross-functional AI committee instead of having one department make all the AI decisions. Legal, IT, cybersecurity and HR should be on the committee, Duerre says.

“If you have a C in front of your title, you should be on that committee,” Duerre says. “That’s how I look at it, because it’s a system-level solution.”

During these meetings, Duerre says you’ll find out that some departments are racing ahead with AI and others are holding back.

“Both sides need to name the trade-offs aloud,” Duerre says. “With teams moving too cautiously, you have to talk about the opportunity cost of falling behind. With teams sprinting ahead, you have to ask them what happens if they don’t bring everyone else along with them.”

Figure out how to use AI strategically

Most companies spent the past two years telling employees to use AI with anything, without much strategy behind it. Duerre says that’s starting to catch up with organizations as finance teams scrutinize the cost.

Her rule of thumb: if you can’t articulate the goal and how you’ll measure success, don’t roll it out yet.

“Teams that use AI well have a strategy behind it,” Duerre says. “They’ve kicked the tires on what they’re trying to solve it for. You need to ask yourself, ‘Which business outcome are we trying to improve, and what must be aligned for AI to create measurable value?’”

Here are a few examples of how to use AI strategically:

  • A company could select a workflow that regularly creates delays, redesign it with AI and test the new approach. Then, measure whether it improves time, cost, quality or capacity.

  • Use AI to support early sales outreach and qualification across markets and languages. AI can help a business reach and assess more potential opportunities, while people remain responsible for understanding the customer and building trust.

  • Flag patterns in customer complaints across multiple channels with AI, so leadership can see recurring problems before it shows up in satisfaction scores.

Check-in regularly during an AI rollout

Duerre recommends a minimum weekly check-in during any AI rollout, sometimes daily depending on complexity. But the format matters more than the frequency. Status updates don’t cut it.

“Ask, ‘What are we learning and what are we surprised by?’ That’s a question that helps you with your check-ins, versus, ‘It’s in three products now and we’ve tested six,’” Duerre says. “That doesn't help, because you’re having these meetings to figure out what’s working and why. If you ask more strategic questions, you can move even faster.”

Publish AI guardrails

Employees who don’t know what’s allowed with AI will either freeze or go around the system entirely, Duerre says. She recommends publishing clear, specific guardrails on what’s okay and what’s not. Come up with some real examples, and pair them with an intake process that doesn’t require writing a thesis to get an approval for using it.

"The approval path should be lightweight, not bureaucratic,” Duerre says. “Something like, ‘If you’re going to use AI, here’s the path. And if it needs approval, here’s three or four quick questions for you to answer.’”

Take employee anxiety about AI seriously

“AI is just a tool” is a phrase Duerre hears at nearly every conference she attends, but she doesn’t buy it.

“Saying it’s a tool is underselling what’s happening at companies right now,” Duerre says. “AI is changing how we work. It’s changing how we lead teams.”

Duerre wants leaders to remember that a lot of employees are fearful of AI. Pew Research Center found 52% of U.S. workers are worried about the future impact of AI in the workplace.

Employees who feel AI is being “done to them,” instead of built alongside them are especially anxious, she says.

“Leaders need to recognize that anxiety is contagious,” Duerre says. “As a leader, this is your opportunity to show up as the safe, steady person who is showing what you’re learning with AI. And don’t be afraid to show how you’ve failed using AI, too.”

Duerre asks every executive she works with: “Who am I with AI?” and encourages them to pass this mindset question along to their employees, too.

“AI is now your teammate,” Duerre says. “Phrasing it as, ‘who am I with AI?’ is different than, ‘what’s going to happen to me with AI?’ You really want your team to feel empowered with AI and show them how it can help accelerate their career.”

Put these ideas into action

Rewiring your organization for AI requires more than the right tools. It takes shared language, practical frameworks, and a willingness to keep learning. Here are a few resources to help you take the next step.

  • Enterprise AI Playbook: Practical frameworks and executive discussion questions to help IT, HR, and business leaders align around AI that delivers measurable value.

  • Work-First AI Use Case Assessment: Identify the workflows where AI can have the greatest impact before you invest in new tools.

  • The REWIRED Brief: Get weekly insights, real-world case studies, and practical advice on leading AI transformation.