How AI Can Reduce Service Desk Ticket Costs from $20 to $4 [Webinar Recap]

Author: Guy Nadivi

It’s the End of the IT Service Desk as We Know it (and We Feel Fine)

If you’ve been paying attention the last few years, you know Digital Transformation is a concept that’s sweeping through many organizations, and fundamentally changing how they operate and deliver value to customers.

There’s some very cool, but still somewhat emerging technologies underpinning this disruption, and you’re no doubt familiar with them. Things such as:

  • Data Science
  • Machine Learning
  • Artificial Intelligence

But in the last couple years, the emerging technology that seems to have garnered the most mindshare faster than any of them is chatbots. That’s right! Chatbots are the coolest kids on the digital transformation block, because they assimilate many of the benefits from data science, machine learning, and artificial intelligence into a form that can be used today, and deliver value to your organization and customers right now. As a result, chatbots have emerged as perhaps the most familiar digital transformation experience for end users.

BTW – There isn’t any consensus yet on a single definition of “Digital Transformation”. One thing just about everyone can agree upon though is that shifting more of the laborious, repetitive tasks that people shouldn’t be doing in the first place over to chatbots is a good idea. This becomes especially true when you look at some numbers.

A the 2017 HDI show, Jeff Rumburg, Co-Founder and Managing Partner of MetricNet, an IT research and  advisory practice, delivered a presentation on the results of his research into the costs of different service desk access and communication channels. He discovered some amazing disparities.

Jeff found that incidents requiring Vendor Support cost on average a whopping $599 per incident.

If you needed to get IT Support involved (that’s level 3 support), the average cost was $104 per incident.

Desktop Support (level 2) was cheaper, but still relatively expensive at $69 per incident.

Incidents going through the Service Desk, your level 1 support tier, cost $20 per incident. Since level 1 tickets comprise by far the highest volume at most service desks, that’s a logical place to start applying chatbots.

If you can push out incident resolution for level 1 tickets to your end users, enabling them to initiate and remediate their own incidents with chatbots, the cost of support drops down to a very economical $4 per incident. Yeah, wow!

At this point, some more skeptical people in IT might be asking – are chatbots a passing fad or are they here to stay? Let’s look at the objective data on that, and see what direction the numbers point to.

Earlier this year, Salesforce.com released a major report entitled the “State of Service”. Nearly a quarter of their respondents (23%) said they currently use AI chatbots and nearly another third (31%) said they plan to use them within 18 months.

That represents a projected growth rate of 136% in the use of AI chatbots over the next year and a half. By any definition, that’s a viral trajectory.

Spiceworks published a report not long called “AI Chatbots and Intelligent Assistants in the Workplace”.

One question their survey asked was about utilization of intelligent assistants and chatbots by department. Guess which department uses chatbots more than any other? That’s right – IT.

Another question in that Spiceworks survey specifically asked IT professionals if they agree or strongly agree with a number of different statements. The statement IT professionals overwhelmingly agreed with more than any other was that AI will automate mundane tasks and enable more time to focus on strategic IT initiatives.

Those IT professionals Spiceworks surveyed were right. One of the biggest benefits of chatbots is that they automate many of the robotic, laborious tasks that humans shouldn’t be doing anyway. That frees up those IT professionals to work on more strategic and far more valuable IT initiatives. Which in turn makes those professionals more valuable to their organizations.

Why is offloading that tedious work from IT staff so important? Because Gartner has shown that the biggest budget item for IT Service Desks is personnel. Between 2012 and 2016, the average percentage of a service desk’s budget allocated to labor ranged from 84% – 88%. With digital transformations driving up the demand for IT support, there’s simply no way an organization can hire their way out of this situation, even if they wanted to.

The reality is that quality service desk personnel simply cost too much, and no matter how good those personnel are, they can only keep up with so much volume. At some point the laws of physics reassert themselves, reminding everyone that people simply don’t scale very well. Chatbots though, have infinite scalability.

That limited human capacity to scale, combined with the increased volume of requests for service desk support, is degrading end user experiences.

A 2016 Harvard Business Review Webinar titled “How to Fix Customer Service” revealed that:

  • 81% of consumers say it takes too long to reach a support agent.
  • 43% of customers try to self-serve before calling a contact center.

What that tells you is that waiting for human support has gotten so insufferable, end users are increasingly willing to remediate their own issues. All they need is for IT to enable a channel for them to do that.

What kinds of requests are keeping IT service desks so busy?

Well if you’ve attended any of our previous webinars you might’ve heard us cite a well-quoted statistic from Gartner that as much as 40% of an IT service desk’s call volume is nothing but password resets. 40%!

Another big drain on your service desk? Requests for ticket status updates. Those can comprise as much as 10% of a service desk’s call volume, and we’re citing ourselves (Ayehu) as the source on that.

How do we know? Well, Ayehu knows because our clients tell us which workflows have the biggest impact on reducing call volume to their service desks.

Therefore, if you can use a chatbot to automate just these two processes – password resets and ticket status updates – you could cut call volume to your service desk in half! That’s huge, and it will go a long way towards reducing your service desk ticket costs dramatically.

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