# Basware Boosts Service Margins with AI While Maintaining Workforce Size > Basware's innovative use of AI through Kantata's platform demonstrates how technology can enhance service delivery and margin growth, all while maintaining a lean workforce. This approach redefines operational efficiency in the professional services sector. **Source**: itbrief.co.uk | **Published**: 2026-10-26 | **Type**: case_study ## Key Facts - Basware's AI deployment increased service margins without headcount growth, enhancing operational efficiency. - Customer success managers shifted from research to direct engagement, potentially doubling revenue capacity. - AI resolved 50% of 10,000 monthly support tickets, improving customer satisfaction and operational speed. - Basware's approach highlights the importance of expertise over automation in professional services markets. - The focus on reallocating human resources indicates a strategic shift towards maximizing specialized knowledge. ## Summary \## Summary Basware, a provider of invoice lifecycle management software, faced challenges with low margins and slow operational processes within its services organization. By deploying Kantata's professional services automation platform, Basware improved capacity and margins without increasing headcount, allowing for a more efficient allocation of staff expertise. \## Background Basware operates in the software industry, providing invoice lifecycle management solutions to thousands of customers globally. Before deploying the AI solution, the company struggled with a low-margin services organization that was slow to scope and staff projects, leading to inefficiencies and unclear operational performance metrics. \## Challenge The primary challenge was the operational inefficiency within the services organization, characterized by low margins and slow response times. Basware needed a solution to enhance its service delivery without adding to its workforce. \## Solution Basware implemented Kantata's professional services automation platform, initially focusing on automating billing processes. The deployment expanded to include resource management, project staffing, and documentation generation. This approach allowed AI to handle routine tasks, freeing up professional services teams to concentrate on customer-facing activities. \## Results The deployment led to significant changes in working patterns. Customer success managers reduced their research time from four to five hours daily, allowing them to engage directly with customers. Basware reported that this extra capacity could potentially double revenue from the existing customer success management team without increasing headcount. Additionally, an AI agent began resolving approximately half of the 10,000 monthly support tickets submitted by non-paying customers, resulting in quicker resolutions and improved customer satisfaction. \## Key Insights The case illustrates that AI can enhance operational efficiency not just through automation, but by reallocating human expertise to areas where it adds the most value. Companies should focus on integrating AI into daily operations to improve service delivery metrics rather than solely relying on it for task automation. \## Customer Testimonial Mark Johnston, Chief Customer Officer at Basware, stated, “Our services organisation was low-margin, slow to scope, slow to staff, and I couldn't tell you whether the software we were running the business on was actually working for us.” ## Entities - **Companies**: Basware, Kantata - **Products**: professional services automation platform, invoice lifecycle management software - **Technologies**: AI - **People**: Mark Johnston, Michael Speranza ## Key Concepts AI in service delivery, billing automation, resource management, customer success management, operational performance, expertise scaling, automation vs expertise, customer satisfaction ## Definitions - **AI**: Artificial Intelligence refers to the simulation of human intelligence processes by machines, particularly computer systems. - **professional services automation**: A platform that helps manage and streamline the operations of professional services organizations, including project management and resource allocation. - **billing automation**: The use of technology to automate the billing process, reducing manual effort and increasing efficiency. - **customer success management**: A business function focused on ensuring customers achieve their desired outcomes while using a company's products or services. - **operational metrics**: Quantitative measures used to assess the efficiency and effectiveness of business operations. ## Use Cases - Improving service margins without increasing headcount - Automating billing processes - Enhancing resource management - Generating project documentation - Resolving customer support tickets with AI - Reallocating employee time to customer-facing work ## Frequently Asked Questions **How is Basware using AI to improve its services?** Basware is deploying AI to automate routine tasks, such as billing and project documentation, allowing its staff to focus on customer-facing activities. This approach aims to enhance service margins and operational performance without increasing headcount. **What challenges did Basware face before implementing AI?** Before AI implementation, Basware's services organization struggled with low margins and inefficiencies in scoping and staffing projects. The lack of visibility into operational performance hindered their ability to optimize service delivery. **What benefits has Basware seen from its AI deployment?** Basware has reported increased capacity, allowing customer success managers to spend more time engaging with clients rather than performing administrative tasks. This shift could potentially double revenue from the existing team without additional hires. **What role does Kantata play in Basware's AI strategy?** Kantata provides the professional services automation platform that Basware uses to integrate AI into its operations. This partnership enables Basware to enhance its service delivery and operational metrics effectively. **How does Basware measure the success of its AI initiatives?** Basware measures success through operational metrics such as staffing speed, support volumes, and service margins, rather than just efficiency claims. This focus helps them understand the real impact of AI on their business outcomes. ## Links - [Read on Welcome.AI](https://welcome.ai/content/basware-boosts-service-margins-with-ai-while-maintaining-workforce-size) - [Original source](https://itbrief.co.uk/story/basware-uses-ai-to-lift-services-margins-without-hiring) --- Source: Welcome.AI | https://welcome.ai/content/basware-boosts-service-margins-with-ai-while-maintaining-workforce-size