In 2024, the AI revolution in support services met a harsh reality—scaling AI capabilities proved more challenging than expected. In 2025, the pace of change is accelerating, and a growing gap is emerging between organizations effectively leveraging AI and those struggling to keep up.

The State of Support Services 2025 report uncovers how AI and evolving support models reshape the industry. It explores the biggest challenges facing support organizations today and what it takes to achieve service excellence. From optimizing service delivery to refining channel strategies, the ability to master AI will determine which organizations will thrive in the years ahead.

Are you positioned for success? Understanding these shifts now can help you stay ahead, rather than playing catch-up.

Read the State of Support Services 2025 report in the TSIA Portal for the full findings. 

The AI Reality Check: Lessons From 2024

Heading into 2024, modernizing support services was no longer optional, but in fact a strategic imperative; organizations faced mounting cost pressures that made it essential to scale operations efficiently. Challenges, however, persisted:

• Many products lacked built-in diagnostics and connectivity, limiting data-driven insights and predictive service capabilities.
• Traditional break/fix models became outdated as the industry shifted toward use-case-based and outcome-driven support.
• AI was positioned to transform support services, but businesses that failed to embrace it lacked momentum and risked obsolescence.

Despite the urgency, AI adoption in support services remained slow. While companies raced to capture AI’s potential, only 5% successfully scaled proven AI capabilities. Meanwhile, 39% of organizations had yet to define the AI-enabled productivity tasks built into their 2024 operating plans. This uncertainty left many businesses in limbo, unable to fully capitalize on AI’s potential.

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The landscape will shift even faster in 2025. Organizations that take decisive action on AI are already ahead, while those that hesitate risk falling further behind. The question is: Where does your organization stand?

The Biggest Challenges Facing Support Services

Support services organizations entered 2024 with high expectations for AI-driven transformation, but the reality of running a large, complex business brought new challenges to the forefront. Based on insights from TSIA members, three critical themes emerged as the top business challenges for support organizations, which still apply today.

1. Optimizing the Support Business Model

Support services are no longer operating in a silo. The challenge is aligning the support business model with the broader company strategy, while fostering better collaboration across sales, product development, and other service units. Organizations that fail to do so risk inefficiencies and missed opportunities to drive customer success.

2. Scaling Support Operations

With customer expectations rising, scaling support operations effectively is a top priority. AI and knowledge management offer powerful tools to streamline support, enable self-service, and proactively prevent issues—but many organizations are still struggling to leverage these capabilities fully. Those who do will gain a competitive edge, while others may be overwhelmed by growing demand.

3. Achieving Service Delivery Excellence

Delivering exceptional support isn’t just about resolving cases—it’s about doing so efficiently and cost-effectively. Organizations must refine their case management strategies, optimize their channel mix, and implement best practices that balance automation with human expertise.

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As AI reshapes the support landscape, companies that master these three areas will be well-positioned for long-term success. The key question for 2025 is: Is your support organization adapting fast enough?

Related: Measuring Knowledge Management

Three Essential Capabilities for Support Organizations in 2025

Overcoming today’s biggest support service challenges requires more than updated technology—it demands a company-wide commitment to develop the right capabilities. According to TSIA research, organizations that want to optimize their support businesses in 2025 must master three critical capabilities.

1. Leveraging AI in Support Operations

AI can potentially transform support services, but success depends on more than implementing AI tools. To drive real impact, your organization must:

• Use AI to enable data-driven decision-making and enhance operational efficiency.
• Leverage AI for customer interactions, targeted assistance, and processing unstructured data.
• Invest in knowledge management (KM) to ensure AI models are trained with high-quality, structured data, leading to more accurate and relevant outputs.

AI can’t deliver its full potential without a strong foundation in knowledge management. A culture of knowledge-sharing and data-driven decision-making will be key to making AI work for support services.

2. Optimizing the Support Services Delivery Model

A well-defined corporate strategy is essential for optimizing support services. To stay competitive, your organization should:

• Align support strategies with overall business objectives to ensure customer satisfaction and margin performance.
• Optimize the mix of support resources across different regions to balance costs and service quality.
• Use self-service success metrics to refine service delivery, tracking KPIs such as self-service success, implicit and explicit case deflection, and customer satisfaction (CSAT).

By focusing on these key metrics, support teams can continuously improve self-service solutions and scale operations efficiently.

3. Creating an Integrated Omnichannel Experience

Customers expect seamless support across multiple channels. To meet these expectations while keeping costs under control, support organizations must:

• Guide customers to the most effective support channel based on their preferences and needs.
• Implement a digital-first approach that reduces the cost per interaction while maintaining service quality.
• Foster cross-functional collaboration to integrate AI-driven predictive and proactive support strategies.

The companies that master these three capabilities—AI-driven operations, optimized service delivery, and omnichannel integration—will thrive in 2025 and beyond. Is your organization ready to leap?

Related: Optimizing the Support Model

Recommendations for Support Services in 2025: Debate, Decide, and Take Action

TSIA’s mission is to help organizations navigate these transformations clearly and confidently. Whether your team is already experimenting with AI or debating its role in your business, now is the time to take action. Here’s how you can start:

• Educate your management team on the essential capabilities needed to optimize your support model.
• Assess your current performance against industry benchmarks and evaluate your AI maturity.
• Prescribe clear, prioritized initiatives to enhance your support operations.
• Align key stakeholders using data-driven insights and proven frameworks to drive meaningful change.

The future of support services is being shaped today. Will your company lead the way, or will you be left playing catch-up? Share these insights with your executive team, challenge the status quo, and commit to the capabilities that will drive your success in 2025.

Related: The Evolution of the Support Services Business Model

Your Key Takeaways

• AI adoption is no longer optional—it’s a competitive necessity: Organizations that successfully integrate AI into support operations are already pulling ahead. At the same time, those still struggling to scale AI capabilities risk falling behind. The ability to automate case management, enhance self-service, and leverage predictive insights will define the future of support services.
• Optimizing service delivery requires a holistic strategy: Support services must evolve beyond traditional break/fix models by aligning with broader company goals, scaling operations efficiently, and delivering a seamless omnichannel experience. Those who master AI-driven support, knowledge management, and self-service optimization will gain a competitive advantage.‍
• Now is the time to take action on AI and business model optimization: The shift to subscription-based models has made it harder to track support costs and justify investments. To secure a strategic role in the organization, support leaders must educate stakeholders, assess AI maturity, and align on a clear roadmap for AI-driven transformation. Those who wait risk being left behind.