
Get more from your technology with Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Section 1:The unseen Section 2:Delivering on the Section 3:Optimize operationsto get more from AI-powered IT . . . . . . . . . . 22 Action guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 How IBM can help IBM has been empowering organizations tooptimize operations and achieve business agilitythrough automation for more than a century. Clientscan unlock the potential of IT automation through For more information about services from IBMConsulting, visit https://www.ibm.com/consulting/ For more information about IT automation solutionsfrom IBM Software, visit https://www.ibm.com/ Key Intelligent automation dramatically The entire IT estate—not justthe AI portfolio—plays a role inbuilding a more profitable and Organizations attribute a 31% reduction in IT costs Transformation and growth are nowtop IT priorities. 67% of the average enterprise IT budget is nowdedicated to improving IT and the business—rather AI makes IT more valuableto the business. Organizations that have broadly implementedgenerative AI in their IT processes attribute a AIOps and automation puts IT ahead Two in three highly automated companies leveragingAIOps platforms have reduced their attack surfaceand threat risk and improved proactive mitigation by Introduction Automate, innovate, elevate IT is the powerhouse of the modern enterprise, dictating how fastit can move—and how much value it can deliver. But getting morefrom technology in an AI-first landscape requires overcoming IT complexity and opaque workflows obscure opportunities. Disconnected datasilos and outdated technology inhibit solutions. Few organizations are reaching What defines organizations with the most advanced IT automation? They see higherrevenue growth, lower costs, better cybersecurity, and amplified business value.Breakthrough analysis from the IBM Institute for Business Value (IBM IBV) reveals These findings came from extensive analysis of benchmarking data provided by ITleaders—including CIOs, CTOs, and vice presidents or directors of IT—from 680companies across 18 industries and 21 countries (see “Research methodology” on We found that highly automated organizations attribute a 10% increase in revenueto their digital transformation efforts. They also attribute a 28% reduction in IT costs,a 16% reduction in time-to-market for new IT products and services, and a 36% These outcomes are fueled by the flywheel created by intelligent IT automation anddigital transformation—including data and application modernization and migration,hybrid multicloud management, mainframe modernization, and process automation. Intelligent IT automation uses AI and machinelearning to deliver workflows that integrateseamlessly across the enterprise and act Think of it this way: The right data, cloud, and AI strategies enable intelligent ITautomation at scale, which powers IT and business transformation. Transformationsupports updated data, cloud, and AI strategies, which position the organization tocapture new value. This flywheel yields broad benefits, giving teams the tools and Section 2End-to-end workflows Section 3Optimizing operations The end goal is to infuse generative AI across enterprise IT, using AI agents to enableautonomous operations at scale. But progress only accelerates if organizations That means the entire IT estate—not just the AI portfolio—plays a role in building amore profitable and productive AI-powered enterprise. In this report, we’ll answerthree big questions about what it takes to unlock the true value of intelligent IT – How can reducing IT complexity cut costs and drive growth?– What does it take to build effective end-to-end workflows? Highly automated organizations attributea 10% increase in revenue to their digital Figure 1 Section 1 The unseen consequences IT spend is soaring—up 50% between 2023 and 2025—risingfrom 6% of revenue to 9%1. That’s partly due to increased AI investments, but even more because the focus of IT has shifted:67% of the average enterprise IT budget is now dedicated toimproving or transforming IT and the business—rather than Shadow IT and technical debt preventIT departments from achieving their What about technical debt? Outdated systems, poor code quality, and deferredmaintenance continues to accumulate. According to Forrester, 75% of technologydecision-makers say technical debt will rise to a moderate or high level of severity by 2026 due to the complexity that AI solutions add to IT estates.3Plus, as cloudspend continues to rise, so will cloud waste, unless companies can tackle the Figure 2 IT budgets are shifting toward Our research reveals that highly automated organizations have been able to addressthis complexity more effectively than peers. When compared with organizations thathave less advanced AI capabilities, they spend less on IT without co