Artificial Intelligence for IT Service Management: Developing a Framework for ROI Optimization Using Service Now and Machine Learning Technologies

Abstract

The complexity of enterprise information technology environments is growing and has increased the need for effective and intelligent IT Service Management (ITSM) solutions that will deliver a business value that can be measured. In today's digital landscape, Artificial Intelligence (AI) and Machine Learning (ML) technologies have become powerful enablers for service automation, predictive analytics, intelligent decision-making, and optimizing operations in contemporary ITSM environments. With this, organizations are under increasing pressure to prove technology investments pay off with real returns on investments (ROI), which means measuring the value of the technology is essential to digital transformation efforts. This study proposes a holistic approach for optimizing ROI by incorporating human elements with AI-driven and ML capabilities through ServiceNow-driven IT service management (ITSM) processes. The framework outlines critical value drivers such as automated incident management, intelligent ticket routing, predictive service analytics, workflow automation, resource optimisation and user experience. It also provides a structured methodology that integrates technology capabilities with operational, financial, and strategic performance indicators that can be measured. The framework integrates insights from previous studies on AI-driven business optimisation, smart service management and enterprise automation platforms, offering a real-world blueprint for data-driven service optimisation while ensuring maximum returns for the organisation. The study underlines the advantages of predictive intelligence and data-supported decision making for operational efficiencies, improved productivity, better service levels and enhanced agility of the organization. The suggested architecture also brings theoretical and practical value since it equips organizations with a structured approach that can be applied for assessing, measuring, and optimizing the ROI of implementing AI in ITSM. The results echo the increasing adoption of intelligent service management strategies that are technology-led and will sustain the business performance for long-term value creation.