| |
ISG Launches Quarterly AI Index
Tech advisory firm Information Services Group is launching the ISG AI Index, a benchmark measuring how AI is impacting the global technology and business services sector. The new offer complements its core ISG Index intelligence service, in operation for 23 years.
 Steve Hall (pictured), the firm's Chief AI Officer, leads both the ISG Index and the new measure.
The new AI Index measures AI's commercial impact across three segments - infrastructure, software and managed services - and is anchored to December 2022, following the release of ChatGPT 3.0 on 30th November: the firm has identified this as 'the start of the current AI era.' Four KPIs are measured for each segment: three of these are common (revenue, profitability and stock price performance), while the fourth is unique to each segment. For infrastructure, the fourth measure is capital expenditure; for software it's cRPO (Current remaining performance obligations) - a measure of revenue sold but not yet recognized, which ISG says is one of the clearest signals of forward demand. For Managed Services, the fourth measure is revenue per employee: this tracks how AI is beginning to change workforce productivity across the services sector.
Inaugural results, announced today, give a total AI Index score of +77% in the three years in question. Scores for the individual components within this underline the long road ahead for AI development: the figure for infrastructure-as-a-service (IaaS) is up 160%; for Software as-a-service (SaaS) up 53% and for managed services up just 0.3%. The firm says 'Revenue growth is running ahead of profitability in every segment,' with AI 'showing up in top-line results before it reaches margins.'
Chairman and CEO Michael P. Connors comments: 'For 94 consecutive quarters, ISG has measured the performance of the global technology services industry through our ISG Index. Our highly respected and trusted barometer has evolved over the years to reflect the seismic changes in our industry, including the advent of cloud-based services. Now, the industry is at a new inflection point. It needs a new way to measure the impact of AI on the broader technology services market. The ISG AI Index is that benchmark.'
The next edition of the AI Index is due in July and will include additional market measures: AI sentiment, tracking enterprise signals on demand, pricing, margins and investment priorities, and AI maturity, measuring enterprise readiness, constraints and adoption levels.
Web site: www.isg-one.com .
|
