Abstract
The rapid evolution of digital technologies has intensified the need for innovative approaches in Information Technology Service Management (ITSM) to meet growing organizational and user demands. Artificial Intelligence (AI) has emerged as a transformative enabler for product innovation strategies, offering significant potential to enhance service efficiency, responsiveness, and overall user experience. This research paper examines the integration of AI-driven capabilities into ITSM product innovation frameworks, focusing on how intelligent automation, predictive analytics, machine learning, and conversational AI can optimize service operations and decision-making processes. The study explores the role of AI in streamlining incident management, problem resolution, service personalization, and proactive service delivery while reducing operational costs and human intervention. Through a conceptual analysis supported by industry use cases and existing literature, the paper highlights the