ServiceNow’s expanded Customer Relationship Management (CRM) offering, unveiled at Knowledge 2025, is not simply a new entry in an already crowded market. It also represents a shift in how enterprise software platforms are being designed to handle customer experience in an Artificial Intelligence (AI)-first world. At the core of this shift is a concept ServiceNow is putting forward with increasing clarity: the System of Action (SoA).
While most traditional CRM platforms focus on managing customer data or enabling engagement, the System of Action model is about connecting customer interactions directly to operational outcomes. It turns a conversation into a coordinated set of actions that span multiple departments, systems, and workflows, ideally, with minimal handoffs, lag time, or manual intervention.
Here’s how the evolution plays out:
| Capability | System of Record | System of Engagement | System of Action |
| Purpose | Store and track customer data | Enable communication and interaction | Drive outcomes and resolution |
| Key enablers | Databases, case logging, reporting | Omnichannel, personalization, CRM UI | AI agents, workflow automation, unified platforms |
| Enterprise impact | Visibility into customer history | Better touchpoints and customer interactions | Faster, proactive, end-to-end customer resolution |
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From intent to resolution: what a System of Action requires
For a platform to function as a true system of action, it must not only capture customer intent but also have the infrastructure to resolve that intent. ServiceNow’s CRM aims to meet that bar by unifying sales, customer service, field service, and order management on a single platform. This is not just a convenience feature. It is the architectural backbone required to move from static records to real-time resolution.
For example, if a customer places an order for a configurable product, a SoA CRM can manage the quote, route the order to fulfillment, and trigger post-sale service in one connected flow. In a traditional CRM environment, that same journey might involve three different platforms, multiple handoffs, and manual coordination between teams.
This unification reduces the need for external integrations and disjointed workarounds that are still common in many enterprise CRM environments. By embedding fulfillment and service logic into the same platform that manages customer interactions, ServiceNow is removing the friction that occurs when processes span disconnected systems.
That’s a foundational step toward becoming a system of action. It allows organizations to break down the silos between the front, middle, and back office and execute customer journeys in a more coherent, automated way.
AI Agents as the orchestration layer
Another key enabler of the system of action is ServiceNow’s introduction of AI agents purpose-built for CRM. These agents are designed to go beyond rule-based automation by dynamically interpreting customer intent, selecting appropriate workflows, and autonomously completing tasks when possible.
The agents act as the orchestration layer, managing complexity behind the scenes. They can handle common inquiries end to end, route more complex cases with full context, and escalate to humans when necessary. The goal is not just to respond faster, but to reduce the number of steps altogether, thus enabling a shift from reactive service to proactive and even autonomous resolution.
Business momentum and strategic expansion
CRM is now ServiceNow’s fastest-growing workflow business, with $1.4 billion in annual contract value and 30 percent growth Year over Year (YoY). This commercial momentum is reinforced by continued investments in related capabilities, such as the acquisition of Logik.io, a Configure, Price, Quote (CPQ) provider. Adding CPQ functionality is especially relevant for industries with complex sales cycles, and it helps extend ServiceNow’s value proposition earlier into the buyer journey.
The company also recently added features like self-service commerce portals and contact center integrations, rounding out the platform’s footprint across the customer lifecycle. All of these capabilities are being positioned as parts of a cohesive system, not separate tools.
Risks and market considerations
Despite the vision, execution will be the real test. Several challenges remain that enterprises and ServiceNow alike will need to navigate:
- Switching costs and organizational inertia: Many sales and marketing teams are deeply embedded in incumbent CRM platforms. Moving core processes to a new system involves retraining, system integration, and organizational change management, all of which create friction
- Transitioning from system of record to system of action: Realizing value from a system of action requires more than just deploying software. It often involves rethinking processes, rearchitecting data structures, and ensuring that workflows are designed for automation. Data quality and governance have become critical here
- Human-in-the-loop design still needed: While the promise of AI agents is strong, most enterprises are still in their early maturity stages. They will need frameworks for where human review, intervention, and oversight are required. Governance, risk management, and clarity on accountability must be built in from the start
- Real-world AI performance: ServiceNow’s agents are already used internally, but customer-scale performance will depend on how these agents handle variability, integrate with legacy environments, and operate in regulated settings. These will be key proof points
- Competitive response: Incumbents like Salesforce and Microsoft are embedding workflow and AI capabilities into their platforms. The difference may come down to architecture and execution. ServiceNow’s ability to prove it can deliver faster time-to-resolution and operational efficiency will be critical to carve out market share
Final take: repositioning CRM around execution
The broader significance of this announcement is not about who wins CRM market share in the short term. It is about redefining what a customer system needs to do in the AI era. The shift from systems of record to systems of action reflects a growing enterprise demand for platforms that can convert signals into outcomes, not just insights into dashboards.
By aligning its CRM around workflow automation, AI agents, and a unified data and execution layer, ServiceNow is proposing a different answer to an old problem: how to serve customers not just efficiently, but holistically.
It will take time to see how this plays out in competitive environments and complex enterprise stacks. But the direction is clear. The next evolution of CRM is less about managing relationships and more about enabling resolution, and that is exactly what the system of action aims to deliver.
If you found this blog interesting, check out our The ServiceNow Services Gold Rush: Are You Ahead In The M&A Game? | Blog – Everest Group, which delves deeper into another topic regarding ServiceNow.
If you have any questions or want to discuss the evolutions of ServiceNow in more depth, please contact Sharang Sharma ([email protected]).
