KPMG says executives see managed services as key to AI

KPMG has published survey findings suggesting executives are increasingly turning to managed services to support agentic artificial intelligence.

The research found that more than 90 per cent of executives view managed services as essential to delivering agentic AI.

Conducted with research and analysis by IDC, the survey drew on responses from more than 1,200 senior leaders at large organisations across North America, Europe and Asia Pacific. Most companies surveyed reported annual revenue of USD $1 billion to USD $10 billion.

The findings suggest managed services have moved beyond their traditional role as a cost-saving tool and are now part of broader transformation plans. Some 87 per cent of respondents said they had already integrated managed services into their digital transformation strategies.

Executives ranked AI expertise as the most important factor when choosing a managed services provider, followed by broader technology capability, data expertise and what the survey described as a strategic transformation mindset.

Investment Priorities

Over the next two years, 56 per cent of buyers said AI management would be their top priority for managed services investment. Cybersecurity ranked next at 33 per cent, reflecting the close link between AI adoption and the security risks that can slow or complicate transformation efforts.

The survey also found near-universal strategic interest in the model. Managed services are now a strategic priority for 99 per cent of organisations surveyed, while two-thirds expect them to deliver significant operating, business and strategic impact within 24 months.

Part of the appeal is the ability of external providers to help companies move faster when dealing with legacy systems, fragmented technology estates and skills shortages. Many businesses still run hybrid environments that combine on-premises systems with cloud platforms, adding complexity to AI projects.

That is prompting companies to rely on outside specialists for areas such as systems integration, data management, governance and deployment. The survey suggests businesses increasingly see managed services as a way to introduce AI tools into existing operations without building every system internally.

Examples cited in the findings include the use of AI agents for cybersecurity, IT diagnostics, software coding and regulatory reporting. In each case, the model offers a way to embed AI into day-to-day functions rather than treat it as a standalone experimental project.

Changing Role

The research points to a broader shift in how companies view outsourced technology support. While operational efficiency remains part of the rationale, respondents indicated that technology innovation is becoming the main area where managed services can have the greatest impact.

This marks a change from the earlier use of outsourced or as-a-service models, which were often associated mainly with lowering costs or shifting routine tasks. In the survey, leaders instead pointed to managed services as a way to address capability gaps in areas including governance, talent, data readiness and model deployment.

Ron Walker, Global Head, Managed Services, KPMG International, said: "Despite the need to accelerate AI, many companies still operate in hybrid tech environments, including both legacy on-premises systems and cloud platforms. Companies are turning to AI-enabled managed services to benefit from new technologies more quickly. They want managed services to bridge the gap and prepare them for continued innovation, through ongoing systems integration, cross-functional data management, and AI governance. By combining sophisticated tech with domain knowledge and strategic collaboration, leading providers help companies get AI traction in critical processes, so they don't fall behind competitors."

The survey results align with a broader corporate push to adopt AI tools while reducing the operational burden of implementation. In practice, companies are seeking external support not only to run technology systems but also to manage the underlying processes needed to scale AI across the business.

For large organisations with complex estates, the attraction is speed as much as expertise. Managed services can offer a way to advance AI projects before internal systems, data structures and staffing models are fully aligned.

Bill Latshaw, Analyst, IDC, said: "In today's AI-driven landscape, organizations operate in an environment where speed, adaptability, and continuous innovation are prerequisites for competitiveness. Managed services provide the operational backbone that enables enterprises to adopt and scale emerging technologies."