Leveraging AI in Shared Services: Transforming Global Business Services (GBS) and Operational Models
Shared Services Centers (SSCs) are playing an increasingly pivotal role in streamlining business operations, reducing costs, and enhancing organizational effectiveness. With the rise of Artificial Intelligence (AI), particularly Generative AI (GenAI), the potential to evolve and optimize these functions has reached new heights. The integration of AI into Global Business Services (GBS) and Shared Services not only boosts operational efficiency but also supports a transformation in how organizations provide value to both their internal and external customers.
This article will explore the momentum of GBS and SSCs in the market, AI’s role in transforming shared services, and how SSC leaders can leverage AI to deliver value and drive business success.
Market Perspective and Momentum of GBS and Shared Services
Global Business Services (GBS) has been a growing trend over the past decade. The traditional model of operating multiple disparate functions in silos is increasingly being replaced by a more integrated and centralized approach, where finance, HR, IT, procurement, and other services are bundled into a single shared services model.
According to Gartner, 40% of Global 2000 companies are expected to adopt a GBS model by 2025, and AI will be a significant part of that transformation. The growing adoption of automation and AI-driven insights is helping organizations accelerate their GBS journey, moving toward smarter, more agile operating models. As companies face mounting pressures to deliver better customer experiences, reduce operational costs, and enhance scalability, GBS models equipped with AI are becoming indispensable.
The momentum of GBS and SSCs is driven by several factors:
- Cost Reduction: Streamlining processes leads to substantial cost savings.
- Consistency and Quality: Centralized operations lead to standardized processes and improved quality.
- Scalability: Shared services, powered by AI, allow businesses to scale operations more effectively as they grow.
Applications of AI in SSCs: Transforming Operating Models
The integration of AI into SSCs enables a wide range of applications that are changing the traditional operating models of shared services:
- Automating Routine Tasks
- Data-Driven Decision Making
- Personalization of Services
- Intelligent Process Management
AI-powered automation can replace many manual, rule-based tasks that currently take up a substantial portion of SSC resources. Tasks like invoice processing, payroll management, and data entry can be performed with minimal human intervention. By adopting AI technologies like Robotic Process Automation (RPA) coupled with Natural Language Processing (NLP), businesses can automate end-to-end processes and reduce manual errors.
For instance, AI chatbots can handle HR inquiries (e.g., benefits, leave requests), and financial models powered by AI can reconcile accounts and analyze financial statements faster than humans. This leads to significant time savings and reduced operational overhead.
AI can help SSCs make smarter decisions by processing large volumes of data and generating predictive insights. Whether it’s financial forecasting, customer support, or procurement analysis, AI algorithms can analyze historical data and deliver actionable insights that improve business outcomes.
For example, in procurement, AI can predict market trends and help in sourcing the best suppliers. In HR, predictive analytics powered by AI can forecast talent needs, helping the SSC proactively manage recruitment and training.
With the help of AI, SSCs can move beyond standard services to offer more personalized experiences for employees or customers. This is particularly useful in areas like IT support and customer service. AI-powered virtual assistants can provide personalized assistance by understanding the context of inquiries, delivering tailored responses, and continuously learning from interactions to improve over time.
For example, an AI system can provide employees with personalized HR services based on their role and tenure in the organization, improving overall satisfaction.
AI tools can help with end-to-end process optimization by identifying bottlenecks, inefficiencies, and areas where resources are not being utilized optimally. Machine learning algorithms can continuously improve processes by learning from past mistakes and making suggestions to streamline workflows.
For example, AI can dynamically adjust staffing levels in a contact center to optimize service delivery or suggest improvements in financial reporting workflows by analyzing past report accuracy and turnaround time.
Benefits for SSC Leaders
For SSC leaders, the adoption of AI presents numerous strategic benefits:
- Enhanced Efficiency and Productivity
- Cost Optimization and Improved ROI
- Real-time Insights and Analytics
- Innovation and Competitive Advantage
AI enables SSC leaders to focus on higher-value tasks by automating routine operations. This leads to greater productivity, allowing staff to engage in more complex, strategic work. The time saved from automation can be reinvested into value-added activities that contribute to business growth.
With AI-powered automation, SSCs can reduce costs associated with manual labor, training, and rework due to errors. AI tools can streamline processes, identify inefficiencies, and help SSC leaders optimize resource allocation, thereby improving ROI.
AI provides SSC leaders with real-time analytics, allowing them to make faster, data-driven decisions. Leaders can use AI-powered dashboards to track performance metrics, monitor service levels, and identify areas for improvement, ultimately driving continuous optimization.
By incorporating AI, SSC leaders can foster a culture of innovation and lead the charge in driving digital transformation within their organizations. Early adoption of AI technology positions the SSC as a strategic partner in driving business outcomes, giving the organization a competitive edge in the marketplace.
Making SSCs Valuable for the Organization
To remain valuable, Shared Services must evolve with the times and contribute directly to the company’s strategic objectives. AI enables SSCs to do just that by:
- Improving Customer Experience: AI chatbots and virtual assistants enhance employee or customer interactions with more efficient and personalized services.
- Supporting Innovation: By implementing AI technologies, SSCs can evolve from back-office support to innovation hubs that drive business transformation.
- Delivering Strategic Insights: AI-generated insights provide SSCs with a strategic role in business decision-making, aligning them more closely with organizational goals.
- Fostering Agility and Scalability: AI-powered processes enable SSCs to quickly adapt to changing business conditions, supporting growth and business agility.
Conclusion
The integration of AI into Shared Services and Global Business Services is not just a trend; it is a transformation in how businesses operate. With the momentum towards digitalization and cost-efficiency, AI will continue to redefine operating models, improve decision-making, and increase productivity. For SSC leaders, leveraging AI is an opportunity to increase their strategic value within the organization, drive innovation, and foster a more agile, scalable service delivery model. Ultimately, the key to making SSCs invaluable to an organization lies in harnessing AI to optimize operations and deliver enhanced value to both internal stakeholders and customers.
