New HFS Research and NewRocket study finds that human-heavy, labor-based ServiceNow services are collapsing under AI’s speed and scale—demand for specialized, outcome-driven providers is surging.
NEW YORK, Dec. 11, 2025 /PRNewswire/ — Traditional ServiceNow service delivery models are being reexamined as enterprises look to unlock more of the platform’s AI-driven potential, according to a new report by HFS Research in partnership with NewRocket. The study reveals that more than two-thirds of ServiceNow implementations stall after the first wave of use cases—not due to the ServiceNow AI platform, which continues to advance rapidly with AI, but because many services delivery models have not yet fully adapted to an AI-first operating model.
As enterprises adopt agentic AI, the consulting and delivery playbook is being rewritten. The report, based on interviews with executives leading ServiceNow transformations, warns that providers that modernize their delivery approach to align with ServiceNow’s AI-driven capabilities will be best positioned to help enterprises achieve faster value.
Key findings include:
- Two-thirds of ServiceNow programs stall after the first wave of use cases due to service delivery models that have not yet adapted to AI-driven ways of working.
- 55% of executives are open to switching providers.
- 44% of those executives now prefer AI strategy and implementation specialists over legacy consultancies.
- 36% of enterprises say they will prioritize partners offering highly specialized, task-specific solutions.
- Agentic AI has cut onboarding time by 40% and delivered over $13 million in annual savings in early enterprise pilots for a global financial firm.
- 45% of enterprises cite specialist expertise as their top criterion when selecting AI partners—a figure expected to reach 48% within five years.
“Agentic AI is putting new pressure on how value is delivered across the ServiceNow ecosystem and it’s not the platform, but the people-dependent service models wrapped around it,” said Phil Fersht, CEO and Chief Analyst, HFS Research. “AI is rapidly reshaping the consulting playbook built on billable hours and generic templates. The next wave of winners will productize their expertise, operationalize trust, and deliver measurable value at machine speed. Providers that fail to evolve will increasingly be challenged by AI-powered precision and outcome-based delivery.”
The paper outlines how enterprises can unlock ServiceNow’s full potential by embracing AI-native orchestration, shifting from staff augmentation to results-based delivery, and engineering trust directly into their operations.
“Enterprises are finding that modernizing the service model around ServiceNow unlocks significantly more value from the platform. Agentic AI is resetting expectations. Enterprises are shifting from labor-centric engagements to investing in IP, efficiency, and outcomes they can trust. Only those who build with AI-native speed and scale will stay relevant,” said Hansa Iyengar, Practice Leader at HFS Research and author of the report.
Other insights from the study include:
- 85% of Global 2000 enterprises license ServiceNow, yet two-thirds of the platform’s capabilities remain underutilized.
- Agentic AI is redefining delivery by making transformation software-defined, embedding policy-as-code governance, and accelerating time-to-value.
- Outcome-first models—built on reusable IP, governance guardrails, and domain-specific solutions—are now the blueprint for scalable, trust-based transformation.
The report’s bottom line: Enterprises that evolve their service model are seeing significantly stronger ROI from the ServiceNow AI Platform.
“ServiceNow has established itself as the AI platform for business transformation, providing one architecture across data, workflows and AI, integration capabilities with multiple systems of record, agent-to-agent collaboration and their AI control tower for governance. We at NewRocket have built AI agent packs on top of the ServiceNow AI platform to further accelerate the deployment of AI for common cross-industry and industry-specific needs. Therefore, the time to value realization is dramatically accelerated compared to legacy services delivery models”, added Harsha Kumar, CEO of NewRocket.
Download the full report: “Reinvent Your ServiceNow Service Model with Agentic AI.”
About HFS Research
HFS Research is a leading global research and advisory firm helping Fortune 500 companies through IT and business transformation with bold insights and actionable strategies. With fearless research and an impartial perspective, HFS empowers organizations to make decisive technology and service choices. Visit www.hfsresearch.com.
About NewRocket
NewRocket is the AI-first Elite partner that activates real value on ServiceNow. As a trusted advisor to enterprise leaders, NewRocket combines industry expertise, human-centered design, and enterprise-grade AI to help organizations navigate change and scale with confidence. With two decades of experience guiding clients to realize the full potential of the ServiceNow AI Platform, NewRocket is among the largest pure-play ServiceNow partners, uniquely focused on enabling enterprises to adopt AI they trust to deliver lasing business value. Visit www.newrocket.com.
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SOURCE HFS Research
