CRM Is Dead? Long Live Agentic AI.

This week on Funnel Frontier: ServiceNow CEO says traditional CRM is going extinct. Should Salesforce be scared?

This week:

• CRM is dead? Long live agentic AI.
• OpenAI CEO Sam Altman predicts AI will kill customer service jobs

Stat of the Week

Support agents using AI tools can manage 13.8% more customer inquiries per hour, boosting productivity without the need to hire more staff. (Nielsen Norman Group)

CRM is dead? Long live agentic AI.

Bill McDermott just called the time of death on your CRM.

The ServiceNow CEO dropped the mic on Bloomberg Talks, calling agentic AI “an extinction-level event” for traditional CRM systems of record.

And before you shrug it off as marketing bluster, consider this: he’s not wrong. 

We’re not talking about AI making your CRM smarter. We’re talking about it replacing the whole damn thing with a system that doesn’t need your reps, your tickets, or your help.

Cue the Jurassic Park music. But this time, it’s not dinosaurs. It’s bots that don’t need lunch breaks.

Wait—why is Agentic AI a threat to CRMs?

Agentic AI = autonomous agents that act, adapt, and learn across workflows, without needing to be spoon-fed prompts like some digital toddler.

McDermott says these agents will kill off 90% of CRM systems by 2029, and we don’t blame him. Why settle for a digital filing cabinet when you could have a digital COO that doesn’t take PTO or coffee breaks?

Translation? Traditional CRM—the kind that tracks emails, logs calls, and politely asks if you want to create a task—is on borrowed time.

This is not just a feature war…

While some vendors are still taping GPT onto their UI like it’s a science fair project, ServiceNow’s shipping a full-stack AI workforce that can actually run your customer ops.

We’re talking about a unified CRM+support+order management+field service platform built on AI agents. And they’re backing it up with deals from Starbucks, ExxonMobil, and the State of California. 

Plus, while Salesforce is still rolling out Agentforce v3 (and fixing its bot babysitting problem), ServiceNow’s already got agents handling 80% of their own support cases, with $350M in value to show for it.

Where it gets real

Imagine all of your customer work happening across a single platform. No more “CRM here, help desk there, order system in that other tab from 2016.”

Also:

• Say goodbye to frontline burnout: Easy requests go straight to the bots. Humans only handle the weird stuff.
• Order drama? Handled: Agents resolve issues across billing, delivery, and inventory before customers even notice.
• Support desk? Autopilot: AI files, routes, solves, and even follows up. You just check your dashboard like a boss.
• Field service? Routed live: Agents send the right person, with the right parts, in real time. GPS optional.

So, should Salesforce be nervous?

Uh, yes.

What McDermott’s really saying is this: CRM vendors who only log interactions are toast. The future belongs to platforms that act on data, not just organize it.

And let’s be honest, Salesforce knows this. That’s why they’re racing to mature Agentforce, overhaul pricing, and plug in Informatica to clean up the data mess.

But the clock’s ticking.

CRM buyers are waking up, AI agents are already working, and “just buy another CRM license” is starting to sound like “just rent another DVD.”

The Week @ CRM.org

Best Contact Management Software in 2025. No more “wait, who’s this?” moments. These tools keep your network tidy, searchable, and ready to schmooze.

7 Google Sheets CRM templates. No budget? No problem. These templates turn a humble spreadsheet into a CRM with real hustle.

Weekly Bloom

How Logitech Designed A New Future. Once notorious for cranking out junk, Logitech moved to careful, “big idea” product design. ‘Tis the reason behind their miraculous turnaround. 

OpenAI CEO Sam Altman predicts AI will kill customer service jobs

Sam Altman just euthanized customer service on stage at a Federal Reserve event.

The OpenAI CEO told Vice Chair Michelle Bowman that customer support roles are one of the job categories that will be “totally, totally gone” thanks to AI.

Altman’s prediction? You’ll never need to say “representative” into the phone again and honestly, he sounds thrilled about it.

Let’s break this down before the bots start writing goodbye cards.

Will AI actually wipe out support roles?

According to Altman, the AI support of today already crushes the old-school system:

“There’s no phone tree, there’s no transfers. It can do everything that any customer support agent at that company could do. It does not make mistakes. It’s very quick. You call once, and the thing just happens.”

And yet, he’s not totally wrong. 

Yes, AI is eating the easy stuff—password resets, tracking numbers, and “where’s my refund” loops. That’s real, and it’s saving companies millions.

But the messy middle? The angry, emotional, multi-system nightmares that land in support inboxes daily? AI’s not ready. And most customers know it.

Altman might be talking like it’s 2029. But the market says we’re still in 2025.

• Cavell Group expects human agent jobs to grow from 15.3M to 16.8M by 2029.
• Gartner says most CX leaders only plan to cut 5% of staff due to AI, if that.
• And 81% of customers? They’d rather wait for a human than deal with an AI agent right away.

So no, Brenda’s not out of a job. Yet.

In fact, she’s busier than ever, handling the hard cases after bots get first crack at the easy stuff.

The real take

Altman’s statement is provocative, but it misses the real transformation:

Support teams aren’t vanishing. They’re getting restructured around AI-first workflows where humans are the escalation layer, not the entry point.

If you’re a CX leader, the question isn’t “Will AI replace reps?”

It’s: Are you building systems where AI agents and human agents can coexist and improve each other?

Because if your support funnel still feels like a game of “escape the chatbot,” you’re just automating the pain.

Galactic Gourmet

CRM blips from around the web

US Senators Propose Bill to Mandate the Right to Human Customer Service. A new bipartisan bill would require companies to disclose if support calls are handled overseas or by AI and let customers request a U.S.-based human instead. Companies that offshore jobs risk losing federal perks.

Salesforce and ServiceNow Invest $1.5B in Genesys. Genesys just secured $1.5 billion from Salesforce and ServiceNow to accelerate AI-powered customer experience tools. It’s a major bet on agent tech—and a sign these giants are doubling down on smarter, connected service platforms.

ID Privacy AI Debuts Voice-First Agent Workforce For Auto CRM. ID Privacy AI launched a voice-first AI team that handles lead gen, follow-up, and appointment setting, built specifically for car dealerships. It integrates directly with top automotive CRMs, no human BDC reps required.

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