Artificial Intelligence in IT Service Management has moved from promise to performance—no longer just about innovation, but about solving real, persistent problems. By 2024, AI adoption was cautious and experimental. In 2025, the shift is clear: AI has arrived, and it’s not just disrupting—it’s delivering.
The Freshservice Benchmark Report 2025 by Freshworks captures the current state of IT service delivery and outlines how organizations can transform employee experience from an operational necessity into a competitive advantage. The study analyzed more than 187 million tickets across 10,743 organizations in 118 countries, including India, highlighting the transformative role of AI in IT service management at scale.
Key findings from the study:
With Freddy AI Copilot, Indian IT teams reported the fastest average first assignment time at 8.045 hours, an average resolution time of 13.75 hours, and an impressive First Contact Resolution rate of 81.96%. These results put India ahead of global benchmarks and established markets such as the US and UK—demonstrating how the country is setting new standards in speed, efficiency, and employee experience.
Between 2024 and 2025, organizations saw marked efficiency gains driven by AI adoption. CSAT (customer satisfaction score) rose from 97.4% to 97.83%, while average resolution time reduced from 24.15 to 21.96 hours. Average first response time decreased from 10.82 to 9.36 hours, and average assignment time improved from 17.47 to 15.80 hours. FCR (First contact resolution) increased to 74.14% from 73.9%. Globally, AI-enabled teams achieved a 76.6% reduction in ticket resolution time and a 41.1% improvement in first response time, proving AI’s impact in accelerating IT service delivery and enhancing employee satisfaction.
The impact of the Freddy AI Agent, Freshworks’ AI-powered virtual agent, was equally significant, deflecting 65.7% of tickets entirely and saving over 431,270 hours of agent time—equivalent to nearly 49 years of cumulative work.
Beyond AI adoption, overall service performance also improved between 2024 and 2025. Customer satisfaction (CSAT) scores rose from 97.4% to 97.83%. Average resolution time dropped by 2.19 hours, first response time improved by 1.46 hours, and first assignment time reduced by 1.67 hours. Together, these gains reflect faster handling of employee requests, higher efficiency, and stronger reliability—delivering tangible ROI today, not in the distant future.
The report makes it clear that whether you are a CIO focused on cost efficiency, an IT manager chasing faster resolutions, or a CHRO striving to improve employee experience, the future of service management is no longer a distant vision. It is here, it is AI-powered and automated, and it is fundamentally changing how work gets done. Crucially, AI is not about replacing teams but freeing them up to focus on higher-value, more fulfilling tasks.