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AI can automate parts of technology services and still create more work for providers overall. The opportunity lies in helping organizations turn AI capabilities into useful, secure, integrated systems—and then operate them. That growth is possible, not assured: efficiency may shrink demand for some traditional work while shifting demand toward new services.
Why automation can create services work
AI can reduce the effort involved in some established technology tasks. But adopting AI at scale requires organizations to select use cases, build or adapt applications, connect them to existing systems and data, and make sure they work reliably in production. Those needs create a different mix of services rather than a guarantee that every provider will grow.
Boston Consulting Group (BCG) frames the tension directly: “For technology service providers, agentic AI represents both a profound disruption and a major growth opportunity.” Its February 20, 2026 analysis estimates that agentic AI could unlock up to $200 billion in net new value pools for technology services over the next five years. That is a BCG forecast, not realized market value or a guaranteed outcome. BCG also expects efficiency gains to reduce demand for some traditional services even as new demand grows. Read BCG’s analysis.
Where organizations may need providers
The service opportunity centers on the work between an AI capability and a dependable business system. BCG identifies demand for providers to build and operationalize priority use cases. In practice, that points to several connected areas:
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- Application development and implementation: designing, configuring, and integrating AI-enabled applications into existing business processes.
- Data operations: preparing and managing the data systems that applications and AI agents rely on.
- Infrastructure modernization: updating the environments needed to deploy and connect AI workloads.
- Operationalization: bringing systems into production and supporting their ongoing operation.
These are not isolated projects. A provider may need to help a customer connect an application to data and infrastructure, then support the resulting system as part of its operations. The value depends on whether the deployed system solves a real customer problem, not simply on whether AI is included.
What the demand signals show—and do not show
BCG’s demand-side survey included more than 115 enterprise executives across six industries. One-third of surveyed enterprises said they were already scaling agentic deployments, and two-thirds expected providers to build and operationalize priority use cases. BCG also surveyed more than 75 executives at technology service providers. These figures indicate interest among the respondents; they are not universal adoption rates or proof that all planned projects will proceed. BCG’s survey and forecast.
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A separate market signal comes from Information Services Group (ISG): combined technology services market annual contract value (ACV) rose 29% to $39.4 billion in Q1 2026, while infrastructure-as-a-service (IaaS) ACV rose 160%. These are ISG’s measures for that quarter, not equivalent to recognized revenue and not evidence that every service category grew. One quarter’s figures also cannot establish the long-term effect of AI on the market. See ISG’s Q1 2026 report.
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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →In March 2024, Gartner forecast that AI and large language model (LLM) tools would account for more than 30% of the increase in API demand by 2026. This is a forecast made before the period, not a confirmed measurement of API demand in 2026. It suggests one potential source of integration work, but does not by itself establish how much paid services work will result. Read Gartner’s forecast.
Why existing services face pressure
More AI-related projects do not mean more work in every service line. An OECD estimate cited in the UK government’s 2026 AI adoption plan says about 50% of tasks in IT and information services are exposed to AI, rising toward 80% in an expanded-capabilities scenario. The plan also cites potential total factor productivity gains above 10% over the next decade if adoption is high. These are scenario-based estimates, not observed job losses or a prediction that half of the sector will disappear. Task exposure means work could be affected; it does not say whether a task will be automated, augmented, or reorganized. Read the UK government plan.
For providers, the implication is a shift in the economics and composition of work. If AI makes parts of delivery faster, customers may need fewer hours for some traditional tasks or expect lower costs. At the same time, implementation, integration, data, infrastructure, and ongoing operations can create new requirements. Whether those requirements offset efficiency pressure depends on adoption, customer priorities, and a provider’s ability to deliver outcomes.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What determines which providers benefit
BCG argues that providers need to realign their portfolios, delivery models, talent, and commercial structures. Those changes matter because a market opportunity does not automatically translate into growth for an individual firm.
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- Portfolio: align offerings with customer needs to build and run AI-enabled systems, rather than relying only on services whose effort may be reduced by automation.
- Delivery model: make implementation and ongoing operational support part of a coherent customer engagement.
- Talent: develop the capabilities needed to connect AI applications with data, infrastructure, and existing systems.
- Commercial model: adapt how work is scoped and valued as automation changes the relationship between effort and customer outcomes.
AI is therefore more likely to expand the technology services opportunity where organizations need help moving from experimentation to production and where providers can deliver dependable results. It can also compress parts of the work providers have historically sold. The market may grow while particular offerings, delivery approaches, or companies face pressure.
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