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AI·December 14, 2025·now

ServiceNow's AI-First Transformation: Evolving Service Delivery Models for Modern Enterprises

ED
Editorial
Cashu Markets·3 min read
TL;DR
  • Over two-thirds of ServiceNow implementations stall due to outdated service delivery frameworks not adopting an AI-first mindset.
  • Organizations prioritizing AI expertise seek specialized service providers, with 55% willing to switch for better alignment.
  • Embracing AI-driven strategies in ServiceNow is essential for maximizing value and staying competitive in the evolving market.

AI-Driven Transformation: Navigating Service Delivery in the Age of Automation

A recent study by HFS Research in partnership with NewRocket sheds light on the pressing need for traditional ServiceNow service delivery models to evolve in response to the rapid advancements in artificial intelligence (AI). The report reveals that over two-thirds of ServiceNow implementations stagnate post-initial use cases, primarily due to outdated service delivery frameworks that have not embraced an AI-first mindset. As organizations increasingly incorporate agentic AI into their operations, it becomes evident that a transformation in service delivery is not just beneficial but essential. Phil Fersht, CEO and Chief Analyst at HFS Research, argues that evolving these models is critical to unlocking ServiceNow's full potential, pushing providers to shift from labor-centric approaches to those that prioritize results, efficiency, and measurable outcomes.

The study shows a significant shift in the consulting landscape, with 55% of executives expressing a willingness to switch service providers and 44% favoring AI strategy and implementation specialists over traditional consultancies. This transition indicates that businesses are actively seeking partners who can provide specialized, task-specific solutions that align with their AI ambitions. In fact, 36% of enterprises are prioritizing collaborations with those who possess deep expertise in AI, a trend that is expected to grow. The implications of this shift are profound; organizations that successfully implement agentic AI report a 40% reduction in onboarding times and have realized over $13 million in annual savings from pilot projects. These metrics underscore the tangible benefits of adopting AI-driven strategies in service delivery.

As enterprises navigate their AI journeys, the demand for specialized expertise is becoming increasingly important. Currently, 45% of organizations rank specialist knowledge as the top criterion for selecting AI partners, a figure projected to rise to 48% within the next five years. This trend highlights an urgent call for service providers to modernize their approaches and operationalize trust to stay competitive within an AI-centric marketplace. For ServiceNow users, embracing AI-native orchestration is not merely a strategic advantage; it is becoming a necessity for maximizing the platform's value. The onus is now on service providers to adapt their service delivery models in line with these evolving expectations to remain relevant and effective in helping businesses achieve their AI objectives.

In summary, the HFS Research study emphasizes the critical need for ServiceNow providers to transition towards AI-first service delivery models. With enterprises prioritizing specialized AI expertise and measurable outcomes, the landscape is shifting, requiring providers to rethink their strategies to align with the demands of the modern business world.