Agentic AI is forcing a rethink of ServiceNow services — outcome specialists on the rise

A faster way to deliver ServiceNow value is changing the services playbook

A recent HFS Research and NewRocket study makes a simple, blunt point: agentic AI is speeding up many ServiceNow (NOW) projects and slicing the human hours they need. For enterprise IT leaders that means faster time-to-value and fewer bodies on big implementations. For investors it draws a line between companies that own automation platforms and those that still sell time-and-materials labor.

How the study measured change and what it found

The study combined controlled pilot work with customer case reviews and vendor interviews. Researchers watched live ServiceNow workflows — things like incident routing, HR onboarding and routine change requests — then compared two delivery models: the familiar, labor-heavy consultant rollouts and “agentic” approaches where AI agents handle repetitive steps, orchestrate platform actions, and hand off only when humans were needed.

Across the pilots and case studies the result was clear. Agentic AI did not eliminate people, but it cut the need for repetitive task labor and sped up delivery. In many scenarios delivery moved from a weeks-long, staffing-heavy effort to something that looks like a rapid, product-style deployment. Throughput — the amount of work completed in a given time — rose materially, and teams reported faster resolution of routine tickets and fewer manual handoffs.

The study also stressed nuance. Not every workflow is an AI-ready candidate. Complex integrations, bespoke workflows with specialized business logic, and projects with high compliance needs still demand human architects and tight project teams. Initial setup, governance and model-tuning added some upfront work, and vendors that tried to bolt AI on without process redesign saw smaller gains.

What this means for ServiceNow, integrators and their investors

For ServiceNow (NOW) the headline is positive: platform owners win when customers can unlock faster, cheaper outcomes. Agentic AI increases the strategic value of a cloud workflow platform that supports automation and extensibility. That should help platform stickiness and long-term license demand — a plus for shareholders who care about durable platform positioning.

But the change is mixed for traditional systems integrators and consulting houses that still earn a large share of revenue by selling hours. Firms such as Accenture (ACN), IBM (IBM), Cognizant (CTSH), Infosys (INFY) and Capgemini (CAP) face margin pressure if a rising share of ServiceNow work becomes productized or delivered with fewer billable consultants. The winners among them will be those that repackage skills into outcome contracts, sell prebuilt IP and managed services, and move away from pure time-based billing.

From an investor lens this sets a mid-term trade: favor platform owners and integrators that show clear productization strategies and intellectual property tied to automation. Be cautious on firms that remain heavily weighted to labor-led revenue without a road map to higher-value, repeatable offerings.

How buyer behavior and the provider landscape will shift

CIOs will start to behave more like product buyers. Procurement will ask for outcome SLAs, fixed-price pilots and demonstrable time-to-value rather than headcount-based bids. That favors smaller, specialized providers who can package a business outcome end-to-end, and larger firms that can productize IP at scale.

Expect a clearer split between two provider types: legacy consultancies that sell teams and time, and emerging outcome-driven firms that sell services as prebuilt capabilities. The latter will compete on implementation speed, lower operating cost for the buyer, and measurable SLAs rather than daily consultant rates.

Near-term signals and what to watch next

For investors: watch quarterly commentary from ServiceNow about adoption of AI-powered features and the shape of professional services revenue. For integrators, listen for mentions of automation IP, productized service lines, or changes to billing models. Margin guidance that slides while revenue mix shifts toward smaller, faster deals will be a red flag for legacy players.

For enterprise IT leaders: pilots that focus on high-volume, low-risk workflows will show the quickest returns. Insist on measurable outcomes, expect to rework governance for agentic models, and watch for security and compliance impacts as AI agents take on orchestration tasks.

The big picture is simple: agentic AI is not a magic wand that removes all implementation work. But it is a powerful lever. Companies that own the platform, or that can turn consulting skills into repeatable products, stand to benefit. Those that cling to selling bodies by the hour will find the market shrinking around them.

Photo: MART PRODUCTION / Pexels

Sources

• prnewswire.com