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September 25, 2025

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From ITSM to ESM: Driving transformation with automation and AI

Introduction: It all starts with a problem

It didn’t begin with a grand vision or a “silver bullet”. It began with a problem.

For years, IT Service Management (ITSM) helped organizations structure processes, standardize service and keep operations reliable. It created value, but also revealed limits: fragmented processes, weak integration with the business, and the constant feeling that IT was just an “internal provider”, not a strategic enabler.

Today, under pressure to cut costs, boost productivity and accelerate digital transformation, CIOs and operations leaders see it clearly: managing IT services is not enough. A service mindset must extend across the entire enterprise. That’s where Enterprise Service Management (ESM) takes the stage.

From silos to seamless workflows

ESM goes far beyond Service Desks or IT incidents. It connects Operations, Finance, HR, Procurement, Facilities and every area handling requests, approvals and critical data.

This shift requires three foundations:

  • Digital workflow orchestration – requests flow seamlessly across areas, eliminating emails and spreadsheets.
  • System integration – ERPs, CRMs and business platforms must work together so data flows without friction.
  • Intelligent automation – RPA, AI and cognitive agents reimagine processes from the ground up, not just speed them up.

Example: At a global retailer, integrating ESM with SAP cut procurement cycle times by 30%, eliminating rework and duplication.

The AI factor: beyond automation

Automation delivers scale and speed. AI adds something even more valuable: adaptation, prediction and personalization.

AI in ITSM and ESM is not just about chatbots. It redefines service in three key ways:

  • Proactive support – predicting incidents before they hit users or customers.
  • Autonomous agents – digital executors that fix, patch and approve automatically.
  • Strategic insights – turning floods of tickets and logs into intelligence for decision-makers.

Example: At a Latin American bank, AI in ITSM reduced critical incidents by 23% by predicting infrastructure failures and triggering corrective actions before customers were impacted.

The pitfalls: Automation can amplify chaos

As I often remind teams:
 “There’s nothing worse than automating something that shouldn’t exist.”

With AI, the stakes are higher. Poorly defined processes or bad data only produce bias, errors at scale, and wrong decisions. That’s why AI must move hand-in-hand with governance, ethics and data management.

Emerging standards such as ISO/IEC 42001 (AI Management System) are becoming the backbone to ensure AI is reliable, safe and business-value driven.

“There’s nothing worse than automating something that shouldn’t exist.”

Lessons learned from global projects

Across industries and continents, successful ITSM-to-ESM transformations with AI share common traits:

  • Governance first, AI later – clear processes and trusted data are non-negotiable.
  • Automate with purpose – every initiative tied to measurable business outcomes.
  • AI agents as digital partners – empowering people, not replacing them.
  • Culture of trust – employees must see AI as support, not a threat.

The future: Means, not ends

This evolution is not just scope – it’s mindset. The goal is not a “super-automated process,” but a new way of working and delivering value.

Automation, AI and integration are tools. The true end is empowering people, enabling data-driven decisions and unlocking innovation.

Conclusion

The journey from ITSM to ESM, powered by AI, is inevitable for organizations competing in a digital, intelligent, experience-driven world.

The question is no longer if your company will adopt AI in ITSM/ESM, but how and when. The winners will not be those who simply adopt AI—but those who lead with maturity and strategic vision.

For more insights and expert guidance, explore ITIL-aligned ITSM tools and PeopleCert ITIL certifications.

Tune into the latest series of PeopleCert Masterclass webinars – Mastering ITSM AI Solutions.