Service-level management (SLM) faces significant challenges. IT organizations often set unrealistic performance targets that result in broken promises and mismanaged expectations. Providing excellent service should go beyond simply fulfilling service-level agreement (SLA) targets to focus on creating better experiences. IT leaders should also update SLAs to include AI-specific and flexible performance measures. This report offers guidelines on transforming your SLM practice to create a stronger partnership between IT and the business.