Salesforce Just Crashed ServiceNow's Party--And Brought AI With It

Salesforce Inc. CRM is stepping into new territory with an AI-driven product for IT managementan expansion that could reshape how enterprises handle internal tech support. The new tool is built to automate routine IT tasks, from provisioning laptops to onboarding employees, using AI agents that connect seamlessly with apps like Slack and Microsoft Teams. This move positions Salesforce beyond its traditional customer management domain and deeper into the operational backbone of corporate infrastructure, an area where ServiceNow NOW has long held the lead.

The timing could be pivotal. Salesforce's Service Cloud, which generated more than $9 billion in revenue last fiscal year, has been a core profit engine. But with AI transforming how businesses manage workflows, Salesforce's entry into IT service automation could unlock a new growth avenue and further integrate its ecosystem of cloud products. The company's management is betting that its data-rich platform and deep software stack could allow it to cross-sell and expand share in the enterprise automation market, an area where demand is surging.

That expansion, however, brings Salesforce head-to-head with ServiceNow, led by CEO Bill McDermott, whose firm has been steadily pushing into customer management softwaresometimes by hiring talent directly from Salesforce. Asked about the rivalry, Salesforce executive Kishan Chetan said the company expects direct overlap but remains confident its advantage lies in tighter product integration and sustained innovation. We'll absolutely run into ServiceNow, Chetan said, adding that Salesforce's innovation pipeline and ecosystem connectivity could be key to winning the next phase of AI-driven enterprise competition.