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The Rise of Agentic AI in ServiceNow

As enterprises seek innovative strategies to streamline operations and enhance productivity, the ServiceNow platform is gaining attention for its promising capabilities. A recent study conducted by HFS Research, in collaboration with NewRocket, sheds light on how traditional service delivery models within the ServiceNow ecosystem are undergoing monumental changes, thanks to the advent of Agentic AI.

The report reveals a significant finding: over two-thirds of current ServiceNow implementations fail to progress beyond the initial wave of use cases. Contrary to what one might believe, this stagnation is not attributed to shortcomings in the ServiceNow AI platform itself, which is continuously evolving but rather to an outdated operational model that hasn't fully adapted to leverage AI-driven technologies.

The Shift Towards AI-Driven Delivery

In today's fast-paced business environment, the demand for specialized, outcome-focused ServiceNow providers is on the rise. The study indicates that as enterprises begin to embrace Agentic AI, the traditional consulting and delivery frameworks are being reconsidered and rewritten. Key shifts include:

• - An Openness to Change: 55% of executives interviewed express a willingness to change providers in search of partners who specialize in AI strategy and implementation, as opposed to relying on legacy consultancies.
• - Prioritizing Expertise: 44% of these executives prefer specialized, task-oriented solutions over traditional comprehensive models. This data shows a clear preference for partners who can offer robust expertise in a specific area.
• - Accelerated Savings and Efficiency: Early pilots using Agentic AI have demonstrated a staggering 40% reduction in onboarding times, translating to annual savings exceeding $13 million for a prominent global financial institution.

The Need for Modernization

Phil Fersht, CEO and Chief Analyst at HFS Research, underscores the urgent need for service providers to evolve their delivery approaches. The landscape is shifting from a model reliant on billable hours and generic templates to one that demands measurable outcomes at a machine speed.

“This evolution emphasizes that it's not just the platform that yields value but how effectively the accompanying service models take advantage of these AI capabilities,” Fersht explains. Providers who fail to adapt risk being outpaced by those who can deliver precision outcomes.

As enterprises look to unlock the full potential of the ServiceNow platform, the report encourages them to prioritize AI-native orchestration, shift from staff augmentation practices to results-driven models, and incorporate trust into their operations directly. This strategic approach leads to greater efficiency and outputs that can be trusted to align with business objectives.

Insights and Future Predictions

Among the insightful takeaways from the research:

• - Underutilization of Features: Despite 85% of Global 2000 companies licensing ServiceNow, a staggering two-thirds of its features remain underused, indicating that the real potential of the platform is yet to be realized.
• - Transformation Toward Software-Defined Governance: Agentic AI is changing how delivery is defined by integrating policy-as-code and rapidly accelerating the time to value.
• - Blueprint for Transformation: The emerging trend is that outcome-focused models, backed by reusable intellectual property and governance frameworks, are setting the foundation for scalable changes in organizations seeking reliable transformations.

In conclusion, the report underscores a pivotal message: enterprises that adapt their service models around Agentic AI stand to gain significantly higher returns on investment with any of their ServiceNow initiatives. Hansa Iyengar, Practice Leader at HFS Research, echoes this sentiment, emphasizing that companies investing in intellectual property and efficiency will thrive in this new environment.

As the landscape evolves, the organizations that best position themselves to leverage AI’s full potential will not only survive but also flourish in the digital transformation era. With ServiceNow now recognized as the cornerstone of business transformation, the onus lies on enterprises to embrace the change and harness the vast capabilities of AI.

For those interested in delving into these findings, the complete report titled 'Reinvent Your ServiceNow Service Model with Agentic AI' is available for download.