ServiceNow’s Latest Move? Even Salesforce Is Bracing for Impact

This week on Funnel Frontier: Wait… ServiceNow is doing CRM now? And AI Agents? Someone check on Salesforce…

This week:

• ServiceNow’s latest move is so big even Salesforce is bracing for impact
• CX Professionals want the government to stop AI customer service nightmares

Stat of the Week

53% of businesses experience improved customer satisfaction and retention with CRM tools. (CRM.org)

ServiceNow’s latest move is so big even Salesforce is bracing for impact

Remember when ServiceNow was just an IT tool? Like that one coworker who only talked about servers and security patches? Well, that’s ancient history.

These days, ServiceNow is making moves—big ones. It just officially entered the CRM race and, at the same time, dropped a massive AI agent upgrade. 

If you’re thinking, Wait, ServiceNow does CRM now? And AI agents?—buckle up. This shift could shake up how businesses handle customer relationships, automation, and enterprise workflows all at once.

ServiceNow is a CRM player now. For real.

At its 2025 Partner Kickoff, ServiceNow made it official–they are in CRM now.

The announcement came as John Ball, SVP & GM CRM Workflows at ServiceNow, celebrated the vendor’s leader position in the 2024 Gartner Magic Quadrant for CRM Customer Engagement Center. 

This isn’t just a rebrand of its existing Customer Service Management (CSM) platform—it’s a full-on commitment to competing in customer experience (CX) and automation.

Historically, ServiceNow has played on the back end of enterprise operations, handling IT, HR, security, and finance workflows. But over the past few years, it’s been creeping closer to the front lines of customer service and CRM—and now, it’s making that leap official.

Now, it’s got omnichannel support, case management, AI-driven insights, and a 360-degree customer view—basically, everything you’d expect from a full-fledged CRM.

But here’s where it’s different: ServiceNow isn’t trying to be Salesforce or HubSpot.

Instead, it’s carving out a niche where CRM meets enterprise-wide service management. The focus? Complex, data-rich automation that connects customer interactions with deeper business operations.

As Martin Schneider from Constellation Research put it:

“ServiceNow can provide insights and capabilities that others can’t. It’s got detailed product and customer data, plus AI that integrates seamlessly with everything from order management to inventory.”

Translation: If your business already runs on ServiceNow, turning it into your CRM could be a no-brainer.

Meanwhile, ServiceNow’s AI Agents are getting an upgrade

At the same time, ServiceNow just dropped a massive AI agent update—with thousands of pre-built AI agents ready to deploy.

These aren’t your basic chatbots—they’re autonomous AI agents that can make decisions, automate workflows, and run entire business processes.

To keep things from spiraling into AI chaos, ServiceNow also launched AI Agent Orchestrator—a tool to prevent agents from stepping on each other’s toes (because, let’s be real, rogue AI messing with enterprise data is not a good vibe).

Here’s where it gets interesting: ServiceNow’s AI Agents aren’t just for CRM. They’re built to automate IT, HR, finance, and other back-office operations—areas where most CRMs don’t even go.

For example:

• If a customer reports a service outage, an AI agent could log a ticket in IT, notify impacted customers, and send real-time updates—all automatically.

• A sales rep prepping for a meeting? An AI agent could pull reports, analyze past interactions, and suggest action items.

• In HR? It could automate employee onboarding, training, or benefit management.

What’s the endgame here?

ServiceNow isn’t playing small. CEO Bill McDermott wants to triple the company’s revenue from $10B to $30B, and AI + CRM are his two big bets to get there.

The company is hiring 3,000 new employees to push these initiatives, and it just acquired CueIn, an AI-powered customer experience startup.

What does this mean for your businesses?

• If you’re already using ServiceNow, this is a signal to pay attention—because your CRM might be evolving before your eyes.

• If you’re not using ServiceNow, but you manage complex service operations, this could be a serious alternative to traditional CRM platforms.

• And if you’re in the AI space? ServiceNow just made a huge play for dominance in enterprise AI automation.

One thing is clear: ServiceNow isn’t just an ITSM powerhouse anymore—it’s about to make the CRM and AI game more exciting than ever before.

The Week @ CRM.org

Types of CRM & How to Choose. Deciding on a CRM is like picking a spouse: do you want operational reliability, analytical insight, or collaborative charm? Choose wisely… 

Free CRM. Yes it exists, with caveats. Like free samples at Costco, these apps are no-commitment, but may just ignite those taste buds. 

Weekly Bloom

David Lynch on Creativity, Meditation, and Inspiration. Listening to Lynch is similar to getting life advice from your uncle who was “abducted by aliens.” It might sound bizarre, but deep down, you know there's wisdom in there.

CX Professionals want the Government to stop AI customer service nightmares

Ever been trapped in an endless chatbot loop, hitting “0” like your life depends on it, just to talk to a real person? You’re not alone. Turns out, even 61% of CX professionals agree that governments should mandate the right to speak to a human.

That’s from a new CX Today study, which reveals a growing disconnect: while CX leaders acknowledge the frustration of AI-run customer service, many aren’t actually making it easier to reach a live agent.

AI running wild?

The study also found that 43% of CX professionals fully trust autonomous AI agents to handle customers—no human needed. Another 36% say they’d trust AI, but only with an escalation plan in place.

The kicker? That means more teams are okay with AI running the show than those who insist on backup plans. And that’s a massive problem when customers get stuck in what President Biden calls AI “doom loops.”

His administration is even pushing for a “single button” to connect customers directly to a human—because let’s be real, no one wants to navigate a maze of chat prompts just to get help.

Policy vs. reality

The U.S. is making moves, but over in the EU, regulations aren’t expected until 2028. Meanwhile, businesses are rolling out AI-led support now, meaning they might have to scramble later if new laws force them to rethink their setups.

The smart move? Plan for AI escalation now. Some companies are already using AI that knows when it’s out of its depth and hands customers off to real agents automatically. But as long as brands prioritize cost-cutting over customer experience, expect chatbot frustration to stick around.

Stellar Strategies: Tips & Tricks for Sales, Marketing & Service

What is Salesforce Atlas & how it can help you?

AI-powered agents are the future of enterprise operations, but if done wrong, they create frustrating, impersonal experiences that drive customers away.

So how do you scale AI while maintaining high-quality, human-like service? That’s exactly where Salesforce Atlas comes in.

Atlas is the reasoning engine behind Salesforce’s AI agents, helping them move beyond scripted interactions to think, learn, and make decisions like a real agent.

Here’s a strategy for implementing AI effectively—without losing the personal touch.

Define where AI fits into your customer journey

Not every task should be handled by AI. The key to success is knowing where AI adds value and where human interaction is irreplaceable.

Use AI for:

• Routine, repetitive queries (order status, appointment booking)

• Pre-screening customer issues before routing to a human

• Proactively suggesting relevant products or services

Keep humans involved in:

• High-emotion scenarios (escalations, complex problem-solving)

• Situations requiring deep empathy (refund disputes, customer frustrations)

Train AI to think, not just respond

Most AI chatbots rely on pre-programmed responses, which is why they often sound robotic and frustrating.

Atlas-powered AI learns and improves in real time, refining its responses based on actual business outcomes.

How to implement this in your AI strategy:

• Feed AI high-quality, structured data (CRM insights, customer history, previous resolutions)

• Allow AI agents to evaluate decisions before responding—if unsure, let them escalate

• Continuously monitor AI accuracy and retrain it based on real-world results

Personalize AI interactions at scale

The worst AI experiences feel generic and disconnected. Customers hate it when AI treats them like just another ticket.

Atlas prevents this by retrieving relevant customer insights before responding, leading to smarter, more tailored conversations.

How to personalize AI at scale:

• Connect AI to CRM data so it can access purchase history, past interactions, and preferences

• Use AI to proactively suggest solutions based on customer behavior

• Automate follow-ups to build long-term engagement

Automate the repetitive, empower humans for the complex

One of the biggest mistakes businesses make with AI is trying to automate everything. Atlas is designed to reduce agent workload, not replace them entirely.

How to balance AI automation and human expertise:

• Delegate low-value tasks to AI (membership status checks, common inquiries)

• Free up agents for complex, high-emotion conversations where human support is needed

• Allow AI to act as a decision-support tool, offering insights that help agents respond faster and smarter

Set up AI guardrails from day one

AI hallucinations, inaccurate responses, and compliance risks can destroy trust.

How to ensure safe AI implementation:

• Use AI guardrails to prevent responses based on unreliable data

• Implement human escalation rules so AI hands off complex cases when needed

• Regularly audit AI decisions to catch errors before they escalate

Want to learn more? Here’s everything you need to know about Atlas Reasoning Engine.

Small business CRM hacks that actually drive growth

For many small businesses, a CRM often feels like a digital Rolodex—great for storing contacts and tracking leads but hardly a game-changer. If that’s how you’ve been using yours, you’re leaving growth opportunities on the table.

The truth is, a CRM can do a lot more than organize data. It can help you predict trends, identify high-value opportunities, and even strengthen customer loyalty. Think of it as a tool to help you work smarter, not harder, especially when resources are tight.

Spot Opportunities Before They Knock

A good CRM doesn’t just track what’s happening; it shows you what’s coming. Here’s how to make your CRM a predictive powerhouse:

• Spot trends with data filters: Dive into historical data to find out which industries, customer types, or marketing channels generate the most revenue. Knowing this can help you focus your energy where it counts.

• Score leads smartly: Many CRMs offer lead scoring features that prioritize your best prospects based on their likelihood to convert. Say goodbye to wasted time on cold leads.

• Customize for repeat patterns: If your CRM shows seasonal spikes in demand for specific products or services, use that insight to plan ahead with targeted campaigns.

Keep Customers Coming Back

New customers are great, but loyal customers are better—and cheaper. Did you know retaining a customer costs five times less than acquiring a new one? Here’s how your CRM can help build those long-term relationships:

• Post-purchase nurturing: Set up automated reminders, follow-up emails, or even birthday discounts to keep your customers engaged and feeling valued.

• Customer feedback loops: Track compliments and complaints stored in your CRM to pinpoint areas for improvement and ensure every customer feels heard.

• Loyalty segmentation: Identify your most valuable customers and reward them with exclusive perks or personalized offers. Your CRM data makes this a breeze.

For small businesses, every hour and every dollar counts. By using your CRM to not just track but predict, you’re turning it into a strategic tool for growth. 

Whether it’s spotting trends, scoring leads, or boosting customer loyalty, the insights your CRM provides can help you focus your limited resources where they matter most.

Still not using a CRM? Explore our list of the best CRMs for small businesses to get started.

Because, what type of CRM your team uses really matters

Here’s the deal: not all CRMs are built the same, and choosing the wrong one could leave your sales team swamped or your data going unused.

Operational CRMs take the grunt work off your plate. Picture this: automated follow-ups, seamless deal tracking, and no more “Oops, I forgot” moments. If time is your enemy, this is your fix.

Analytical CRMs go Sherlock Holmes on your data. They don’t just show you numbers—they uncover hidden patterns to help you predict customer behavior and target the right leads at the right time.

Collaborative CRMs? They’re the glue for your teams. Imagine marketing and sales actually working together, sharing insights in real time to close deals faster.

The wrong CRM? It’ll cost you time, money, and perhaps your team a nerve (or ten).

Dive into the full guide and discover what CRM type suits your team the best.

Galactic Gourmet

CRM blips from around the web

Salesforce CEO Claims Agentforce Won Thousands of Deals Already. Marc Benioff says Agentforce is scaling faster than any Salesforce product, expecting thousands of deals in Q4 alone.

Oracle-Backed Ishan Technologies Enters CCaaS Space. Ishan Technologies launches CXConnect, a cloud-based CCaaS powered by Oracle’s E-SBC. Built for India’s contact centers, it ensures secure voice communications, seamless CRM integration, and better customer service.

Alvaria Partners with Zoom for Smarter, Compliant Contact Centers. Alvaria is integrating its outbound contact center solutions with Zoom’s CX platform, aiming to improve compliance and scalability for enterprise customer engagement. The move strengthens Zoom’s contact center offering.

Astronomical Assets

Significant moves in the past 7 days

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