Artificial Intelligence has moved beyond experimentation in IT Service Management (ITSM) to become a proven driver of performance. The Freshservice Benchmark Report 2025 by Freshworks shows how AI is redefining IT service delivery—enhancing employee experience, accelerating resolutions, and turning operational efficiency into a strategic advantage.
The study, which analyzed over 187 million tickets across 10,743 organizations in 118 countries, reveals that India is now outperforming global benchmarks in speed and service quality. With Freddy AI Copilot, Freshworks’ GenAI-powered assistant, Indian IT teams achieved an average first assignment time of 8.05 hours, resolution time of 13.75 hours, and a First Contact Resolution rate of 81.96%—surpassing even established markets such as the US and UK.
Between 2024 and 2025, AI adoption translated into measurable operational gains. Customer satisfaction (CSAT) rose from 97.4% to 97.83%, while average resolution time dropped from 24.15 to 21.96 hours. First response and assignment times improved to 9.36 and 15.8 hours, respectively, and FCR climbed to 74.14%. Globally, AI-enabled teams recorded a 76.6% reduction in ticket resolution time and a 41.1% improvement in first response time, underscoring AI’s tangible impact on service speed and employee satisfaction.
The influence of Freddy AI Agent, Freshworks’ virtual assistant, was equally striking—it deflected 65.7% of tickets and saved over 431,000 hours of agent effort, the equivalent of nearly 49 years of cumulative work. By handling repetitive tasks autonomously, AI is freeing IT teams to focus on complex, high-value problem-solving.
Beyond automation, the report positions AI as a catalyst for better employee experience and organizational agility. Whether it’s a CIO seeking cost optimization, an IT leader driving faster resolutions, or a CHRO improving workplace experience, AI in ITSM is delivering measurable returns today. As the report concludes, the future of service management is no longer a distant goal—it is here, AI-powered and fundamentally transforming how work gets done.