Salesforce Challenges ServiceNow with AI-Integrated ITSM at Dreamforce 2025

Salesforce plans to unveil AI-integrated ITSM capabilities at Dreamforce 2025, challenging ServiceNow's market dominance by blending CRM and IT services. This move leverages Agentforce for efficient workflows amid a growing $20B sector. Analysts foresee intensified rivalry, innovation, and potential platform consolidation for enterprises.
Salesforce Challenges ServiceNow with AI-Integrated ITSM at Dreamforce 2025
Written by Mike Johnson

Salesforce.com Inc. is poised to make a significant push into the IT service management (ITSM) arena, a move that could intensify competition with industry leader ServiceNow Inc. At the upcoming Dreamforce 2025 conference, scheduled for October 14-16 in San Francisco, the CRM giant plans to unveil new ITSM capabilities integrated with its Agentforce AI platform. This expansion comes amid Salesforce’s broader strategy to leverage artificial intelligence for enterprise operations, potentially reshaping how businesses handle IT support and workflows.

The announcement builds on earlier signals from Salesforce CEO Marc Benioff, who in March 2025 hinted at the company’s ambitions during a podcast appearance. By entering ITSM, Salesforce aims to challenge ServiceNow’s dominance in areas like incident management, problem resolution, and service desk automation. Analysts suggest this could blur the lines between CRM and ITSM, allowing Salesforce customers to manage customer relations and internal IT services from a single platform.

As Salesforce eyes ITSM expansion, the move reflects a strategic pivot amid evolving market demands, where AI-driven automation is becoming essential for efficiency. This initiative, detailed in recent reports, positions Salesforce to capture a slice of the growing ITSM sector, projected to reach $20 billion by 2028, by integrating its Einstein AI tools with service management features.

ServiceNow, which commands over 40% market share in ITSM according to posts found on X, has been fortifying its own offerings, including expansions into CRM territories that overlap with Salesforce’s core business. A March 2025 article from Salesforce Ben highlighted this brewing rivalry, noting ServiceNow’s push into customer relationship management just as Salesforce eyes IT operations. The competition heated up further with joint investments, such as the $1.5 billion stake in Genesys by both companies, as reported in August 2025 posts on X from users like @cloudtimesuk.

Dreamforce 2025, described as the world’s largest AI event in a guide from Salesforce Ben, will likely showcase Agentforce enhancements tailored for ITSM. These include autonomous agents for rapid issue resolution and seamless handoffs between AI and human workers, building on announcements from 2024 about Einstein Service Agents.

With Dreamforce approaching, industry insiders are watching how Salesforce’s ITSM foray might disrupt established players, potentially leading to consolidated platforms that merge customer and IT data. This convergence, as explored in recent analyses, could drive innovation but also spark pricing wars and integration challenges for enterprises.

Financially, Salesforce is in a strong position to fund this expansion. Recent X posts from Marc Benioff outline robust growth projections, with FY26 revenue guidance at $41.3 billion and operating margins at 34%. This fiscal health, detailed in updates from May 2025, enables aggressive investments in AI and new markets like ITSM.

However, challenges loom. ServiceNow’s entrenched position in Fortune 500 companies—over 85% penetration, per X discussions—means Salesforce must prove its ITSM tools offer superior integration with existing CRM ecosystems. A March 2025 piece from gettectonic.com noted Benioff’s bold signals, but skeptics question whether Salesforce can quickly scale in a field where ServiceNow has invested heavily in AI workflows.

Looking ahead, the ITSM battle could accelerate AI adoption across enterprises, with Salesforce’s entry prompting ServiceNow to innovate further. As covered in a CX Today article from March 2025, this rivalry underscores a shift toward unified platforms that blend service management with customer insights, potentially benefiting users through enhanced efficiency.

Enterprise adoption will be key. Companies already using Salesforce for CRM might find the ITSM add-ons appealing for reducing tool sprawl, but migration from ServiceNow could be costly. Recent news from CX Today emphasizes how this move counters ServiceNow’s CRM incursions, setting the stage for a protracted contest.

In interviews with industry experts, the consensus is that Dreamforce 2025 could mark a turning point. If Salesforce delivers compelling demos of AI agents handling complex IT tickets, it might sway undecided enterprises. Yet, as X sentiment indicates, with users praising ServiceNow’s automation prowess, Salesforce must demonstrate tangible ROI to gain ground.

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