Companies look to GenAI, agentic AI for streamlined product, service development as providers begin to offer early use cases, ISG Provider Lens™ report says
STAMFORD, Conn., April 24, 2025--(BUSINESS WIRE)--Enterprises in the U.S. are applying generative and agentic AI to all aspects of digital engineering, seeking more efficient product development and faster time to market, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens™ Digital Engineering Services report for the U.S. finds that companies recognize AI’s potential to streamline engineering tasks, including design, simulation, testing, operations and field services. AI-enabled digital engineering is triggering significant change in a wide range of industries, including chip design, life sciences, consumer products, precision manufacturing and financial services. The U.S. is fertile ground for AI adoption due to its digital maturity and entrepreneurial culture, and there is growing demand for services to support this transition.
"Digital design and engineering can be completely transformed with GenAI," said Matteo Gallina, ISG digital engineering solutions lead. "Companies in the U.S. are hungry for services to help them realize that potential."
Successful AI implementations can reduce costs, workforce requirements and development time, ISG says. For example, GenAI can create millions of possible product designs, replacing slow and costly development with rapid processes that reduce time to market. However, enterprises are demanding proven use cases for the technology, which few service providers can offer yet.
Much of the demand for AI services in the U.S. comes from fields where AI integration requires deep industry knowledge, ISG says. For example, in manufacturing processes such as chip lithography, AI could enable companies to identify failures in complex manufacturing equipment. AI models can be quickly trained on an almost unlimited amount of specialized domain knowledge. However, demand for vertical expertise by providers in this area still outstrips supply.
AI is also accelerating research and development and service delivery in pharmaceuticals, healthcare and life sciences, the report says. Agentic AI systems can autonomously analyze vast datasets to identify potential drug candidates and optimize clinical trial designs, reducing costs and bringing new therapies to market more quickly.
AI-powered digital engineering is also helping U.S. enterprises develop and deliver consumer services in collaboration with providers, ISG says. Companies are demanding implementations that comply with regulations and do not increase risk. For example, if a bank uses a GenAI tool to develop a loan approval bot, the bot’s actions need to be explainable, or the bank could be liable to lawsuits over issues such as discrimination. Privacy and data security are also significant concerns.
"AI lets companies reimagine customer experience design to personalize experiences at scale," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Leading service providers can help clients develop AI engineering tools that meet evolving requirements."
The report also explores other digital engineering trends affecting U.S. enterprises, including the importance of data quality and availability and rising concerns over the energy consumption of AI workloads.
For more insights into the digital engineering challenges faced by U.S. enterprises, including the shift to offering services such as software and the need for a new talent mix to reshore manufacturing, plus ISG’s advice for addressing those challenges, see the ISG Provider Lens™ Focal Points briefing here.
The 2025 ISG Provider Lens™ Digital Engineering Services report for the U.S. evaluates the capabilities of 43 providers across four quadrants: Design & Development (Products, Services and Experiences), Integrated Customer/User Engagement, Intelligent Operations and Platform and Application Services.
The report names Accenture, Capgemini, Cognizant, GlobalLogic, HARMAN, HCLTech, Infosys, LTIMindtree, LTTS, Persistent Systems, TCS and Wipro as Leaders in all four quadrants. It names Cyient, Hexaware and Tech Mahindra as Leaders in three quadrants each. NTT DATA is named as a Leader in one quadrant.
In addition, Apexon is named as a Rising Stars — a company with a "promising portfolio" and "high future potential" by ISG’s definition — in three quadrants. Ascendion is named as a Rising Star in two quadrants. Motherson Technology, NTT DATA and Xorient are named as Rising Stars in one quadrant each.
In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among Digital Engineering Services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2025 ISG Provider Lens™ Digital Engineering Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
