AI Won’t Make GBS Firms Obsolete, But Adoption Is Becoming Essential

AI Won’t Make GBS Firms Obsolete, But Adoption Is Becoming Essential

Artificial intelligence will not eliminate the need for Global Business Services (GBS) organizations. Instead, AI is expected to make them more important by enabling them to coordinate, govern, and scale AI initiatives across entire enterprises. The report warns that dismantling GBS structures in favor of isolated AI efforts within individual departments could create fragmented accountability and reduce overall business value.

According to BCG, organizations that successfully transform their GBS operations with AI could reduce their service-delivery footprint by 25% to 35% while strengthening governance and accelerating enterprise-wide AI deployment. Rather than functioning solely as cost-efficiency centers, GBS organizations are expected to evolve into strategic hubs that manage data, processes, automation, and AI capabilities across business units.

The report also highlights that technology alone does not generate most of AI’s value. BCG research suggests that a large share of successful AI outcomes comes from workforce transformation, process redesign, and employee upskilling. Companies achieving meaningful returns from AI are significantly more likely to invest in structured learning programs and redesign how work is performed rather than simply deploying new tools.

The broader message is that AI is reshaping the role of GBS rather than replacing it. As organizations deploy increasingly sophisticated AI systems, centralized governance, cross-functional coordination, risk management, and talent development become more critical. In this environment, GBS organizations may serve as key orchestrators of enterprise AI strategy, helping businesses convert AI adoption into measurable operational and financial results.

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