Last year, TSIA's 2023 report on The State of Technology Services illuminated avenues for companies to navigate turbulent economic conditions. With layoffs persisting and budgets tightening in 2024, the urgency to optimize operations has only intensified. However, amid these challenges, the rapid growth of AI has offered a beacon of hope. Companies are beginning to leverage these newly accessible capabilities to reduce costs, improve efficiency, and scale their service operations. This report presents an update to the state of technology services in light of these advancements, and will provide updated insights on where to cut back and how to fuel growth by leveraging AI.