ServiceNow Expands Legacy Replacement Push with AI Platform

ServiceNow is expanding its legacy replacement push with an AI platform that connects AI, data, and workflows across various functions. This strategy aims to strengthen the company's position against Microsoft and Salesforce in enterprise workflows, CRM, IT service management, and AI automation.

The company's legacy replacement efforts are gaining traction, particularly in CRM, where its CRM business reached around $2 billion in annual contract value in the second quarter of 2026. ServiceNow expects to process over 2 billion service cases this year and has seen a significant increase in sales, with an average deal size doubling year-over-year.

Partners are increasingly positioning NOW as an operational CRM platform, increasing competition with Salesforce. Recent wins highlight the opportunity for ServiceNow's AI-native offerings to displace legacy products. For instance, a partner completed a full front-office replacement of a major CRM deployment in just two months.