Using AI to Rethink Shared Services Strategy

The role of shared services in business operations has evolved significantly in recent years. Traditionally, organizations used shared services as a way to centralize back-office functions like finance, HR, and IT to streamline operations, reduce costs, and improve efficiency. However, with the advancement of artificial intelligence (AI) technologies, the potential to reimagine the shared services model is now greater than ever before.

AI can enhance shared services strategies in a number of ways, enabling organizations to move from simple cost-saving initiatives to more value-driven, innovation-focused frameworks. Let’s take a deeper look at how AI can be integrated into shared services to create smarter, more agile, and forward-thinking operations.

The Current State of Shared Services

Shared services typically involve consolidating administrative functions across an organization into one centralized unit, reducing redundancy and improving consistency. For example, a company may centralize its HR, finance, and IT functions in a shared services model to improve operational efficiency. Historically, shared services have been focused on improving transaction efficiency and reducing overhead costs. While this model has worked well in many cases, the rise of AI presents opportunities for even greater transformation.

Despite the cost-cutting benefits of shared services, businesses today face increasing pressure to deliver more value, reduce complexity, and improve customer satisfaction. With digital transformation initiatives in full swing, shared services must adapt to meet new expectations. In this context, AI offers organizations the ability to rethink their shared services strategy to align with the demands of a modern, technology-driven business environment.

How AI Can Transform Shared Services

1. Automating Routine Tasks and Processes

AI can revolutionize shared services by automating routine, time-consuming tasks. For instance, in finance, AI tools can handle tasks like invoicing, transaction processing, and reconciliation. In HR, AI can assist in automating employee onboarding, payroll processing, and compliance tracking. By offloading these repetitive tasks to AI, organizations can free up their employees to focus on more strategic activities that require human intervention and decision-making.

Robotic Process Automation (RPA), which is often coupled with AI, can execute structured tasks without human involvement. For example, an AI-powered RPA system can be programmed to pull data from multiple systems, update records, and generate reports—all without the need for manual input. This leads to significant reductions in error rates and processing times, creating more efficiency in shared services operations.

2. Improved Decision-Making with Data-Driven Insights

AI excels at processing vast amounts of data quickly and efficiently. In a shared services environment, this capability can be used to analyze historical data, identify patterns, and offer predictive insights that can guide decision-making. For example, AI can help in the optimization of resource allocation by analyzing workload data and predicting the demand for services. This can enable shared services teams to deploy resources more effectively, ensuring that the right skills and capacities are available at the right time.

Furthermore, AI can help identify areas of inefficiency or risk in shared services operations. By continuously monitoring performance metrics and flagging deviations from established standards, AI can help organizations stay ahead of issues before they escalate, improving overall service delivery.

3. Enhancing the Employee and Customer Experience

AI is not just about automating internal operations; it can also improve the experience of employees and customers who interact with shared services. Virtual assistants or chatbots powered by AI can provide 24/7 support for employees seeking HR, finance, or IT services. These AI-driven solutions can answer frequently asked questions, help employees with tasks like updating personal information, and even guide them through troubleshooting IT issues.

For example, an HR chatbot could assist an employee with leave requests, benefits inquiries, and training schedule updates, without needing to involve a human representative. Similarly, IT helpdesk AI systems can handle first-line support queries, providing solutions for common technical issues, and escalating more complex problems to human agents when necessary.

The key benefit of using AI in this context is that it significantly reduces the time employees spend on administrative tasks, allowing them to focus on more meaningful work. Additionally, employees can get immediate answers to their questions or resolve issues without waiting in long queues or relying on human agents.

4. Enhancing Service Quality through Continuous Learning

Unlike traditional software tools, AI systems can continuously improve through machine learning. This ability to learn from past experiences makes AI particularly effective in shared services, where tasks and processes often evolve over time. For example, an AI-based solution can track user interactions, identify common pain points, and adapt to improve service delivery in future interactions.

Over time, AI tools can learn from data and user feedback to make better recommendations, optimize workflows, and enhance service offerings. In a shared services environment, this can lead to improved customer satisfaction, better service consistency, and more tailored offerings.

5. Supporting Predictive Maintenance and Risk Management

AI can also be instrumental in managing the risks associated with shared services. For example, predictive maintenance powered by AI can be used to monitor IT infrastructure and detect potential issues before they become critical problems. By analyzing system logs, network traffic, and historical performance data, AI can predict when certain equipment or systems are likely to fail or require maintenance.

In finance, AI can identify potential fraud or compliance risks by analyzing transaction patterns and flagging suspicious activity. This allows shared services teams to take preemptive action to mitigate risks and prevent costly issues before they arise. AI-driven risk management strategies can help organizations maintain service continuity and reduce potential disruptions.

6. Enabling Greater Flexibility and Scalability

AI enables organizations to scale their shared services operations more effectively. As companies grow or face fluctuating demand, the need for scalability becomes more apparent. Traditional shared services models, especially those relying heavily on human labor, can struggle to keep pace with rapid growth or changing needs. AI, on the other hand, can handle increases in volume without requiring proportional increases in headcount.

For example, AI can adjust service levels in real time, depending on factors like workload or time of day, ensuring that demand is met efficiently. This level of flexibility is crucial for organizations that need to quickly adapt to changing market conditions or business priorities.

7. Improving Strategic Alignment and Agility

AI can also help ensure that shared services are more aligned with an organization’s broader strategic goals. By using AI to collect and analyze data from across the enterprise, shared services teams can gain a deeper understanding of business needs and performance. This insight enables them to better align their activities with organizational priorities, making it easier to drive innovation and transformation.

For example, AI-powered analytics can reveal trends in employee engagement, productivity, or service delivery, allowing shared services leaders to make more informed, data-driven decisions. This improves agility, allowing shared services teams to adapt quickly to new business needs or shifts in strategic direction.

Rethinking Shared Services Strategy for the AI Age

Adopting AI in shared services is not without its challenges. Organizations must invest in the right technology infrastructure, ensure the proper training for their staff, and address any resistance to change. However, the benefits are clear. AI can drive significant improvements in efficiency, decision-making, employee and customer experiences, and overall service quality.

To successfully rethink shared services strategy with AI, organizations should:

• Assess Current Operations: Understand the strengths and weaknesses of the current shared services model and identify areas where AI can bring the most value.

• Set Clear Objectives: Determine what the organization hopes to achieve with AI—whether it’s reducing costs, improving service quality, or increasing agility.

• Invest in Technology and Skills: Ensure that the organization has the right AI tools, platforms, and expertise to implement AI solutions effectively.

• Foster a Culture of Change: Encourage a mindset shift within the organization, where AI is seen as a tool for transformation rather than a threat to jobs.

By rethinking shared services strategy in light of AI advancements, organizations can unlock new opportunities for growth, innovation, and operational excellence. AI is not just a tool for automation; it’s a catalyst for reshaping how shared services deliver value to the business. As organizations continue to embrace AI, the shared services model will evolve into a more strategic, dynamic, and impactful function.