Orica Leverages Generative AI to Enhance IT Service Desk Operations

Orica, a global leader in explosives and blasting systems, has emerged as a notable early adopter of generative AI through its implementation of ServiceNow’s Now Assist platform to streamline IT service operations. This initiative is part of the company’s broader plan to expand AI use across IT operations, with the goal of enhancing service desk efficiency and deflecting inquiries to chatbots and self-service channels. This move follows a significant replatforming effort that began two years ago, during which Orica re-implemented its decade-old ServiceNow instance, effectively upgrading its IT systems to a more modern, greenfield configuration.

In 2023, Orica made the decision to rework its ServiceNow platform to address growing needs for more advanced functionality. The re-platforming journey, executed in collaboration with Thirdera, a ServiceNow partner owned by Cognizant, took 12 months and allowed Orica to deploy new features such as virtual agents, cloud discovery, and integrations with other systems. This foundational upgrade was crucial for Orica to embark on its AI journey, including its use of generative AI for IT service management (ITSM).

Orica’s initial AI efforts involved leveraging Now Assist to connect with an external large language model (LLM) through the Azure OpenAI service. These early-stage proof-of-concept projects demonstrated the potential value of AI in improving IT operations, and as ServiceNow introduced its own LLM, Orica switched to the platform’s native capabilities. Within six weeks, Orica was able to roll out key AI functionalities, including incident summarization, resolution note generation, and AI-powered search. The use of virtual agents followed shortly thereafter, demonstrating immediate value in deflecting service desk inquiries.

The results from these initial AI applications have been positive, although not without some mixed outcomes. For instance, while the generation of resolution notes and summaries offered efficiency benefits, the tangible cost savings were modest. In contrast, AI-driven capabilities like summarizing live chats and improving AI search functionality have proven highly effective. The ability for users to quickly retrieve answers, such as password reset instructions, without navigating through knowledge articles has been particularly popular, enhancing the overall user experience.

One of the most significant improvements observed by Orica has been the performance of its virtual agent. The deflection rate—the percentage of service desk inquiries handled by the virtual agent—has skyrocketed from 18 percent to 94 percent, representing a massive improvement in efficiency. The success rate of virtual agent interactions has also doubled, indicating that more users are completing the flows successfully, which further reduces the load on human agents. This increase in virtual agent usage is particularly notable, with about 75 percent of interactions initiated through Microsoft Teams.

Beyond IT service management, Orica plans to expand its use of Now Assist across other areas of IT operations, including software asset management, alert and event management, and summarization of operational data. As the company continues to refine its generative AI tools, Orica aims to improve deflection rates further and enhance language support, which is available in 12 languages across its global workforce. Additionally, Orica’s AI initiatives are helping to reduce the mean time to resolution (MTTR) for incidents, with a noticeable drop of one day already observed after just two months of using the system.

Looking ahead, Orica expects to fully realize the benefits of Now Assist within the next six to 12 months as it continues to expand its use cases and fine-tune its implementation. The company envisions a future where AI plays an even more integral role across various IT operations, supporting not only service management but also other critical areas of the business, ultimately driving greater efficiency and operational excellence.

By strategically integrating AI into its IT operations, Orica is setting a strong precedent for the role of generative AI in transforming enterprise-level IT functions, with the goal of achieving higher productivity, reduced costs, and better service outcomes across its global operations.