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The chapter discusses the benefits and risks of utilizing automation and AI-driven services in IT sourcing. While automation and AI offer efficiency, cost savings, and enhanced decision-making capabilities, they also pose challenges such as job displacement, security risks, and implementation difficulties. The text further explores how to identify areas ripe for automation and AI implementation, and outlines a comprehensive strategy for integrating these technologies into IT sourcing, focusing on developing clear objectives, performing a gap analysis, choosing the right technology, and ensuring organizational readiness.