How this smart CPQ integration signals a deeper push into CRM—and what it means for your tech stack
ServiceNow is making significant waves with their recent AI acquisitions. Just a few weeks ago, they announced their massive $2.85 billion acquisition of Moveworks. Today, ServiceNow announced it’s acquiring Logik.ai, a startup known for its AI-powered Configure, Price, Quote (CPQ) technology. While terms of the deal were not disclosed and may not dominate headlines like a big-name merger, it’s another bold move with serious implications—especially if you’re a CIO looking to leverage AI to modernize processes.
The Macro View for CIOs
ServiceNow is well known and respected in the spaces of IT workflows and service management, but this acquisition is about something bigger: expanding deeper into CRM territory. Specifically, it’s aimed at making ServiceNow more competitive in the sales operations space, an area long dominated by players like Salesforce and Oracle. So, what does this mean for CIOs and enterprise IT strategy?
Let’s break it down.
The News
ServiceNow announced it’s acquiring Logik.ai which reimagines the CPQ process while leveraging AI to improve the experience and capabilities. Many startups are carving away traditional processes and leveraging AI to catapult their value and prominence. Logik.ai carved out the CPQ space that is often problematic and riddled with challenges which slows down the process.
What does this mean for ServiceNow and Customers?
On the surface, one could reasonably ask why ServiceNow is going after CPQ as it seems like an odd matchup not to mention it is a very specific portion of the Sales and Order Management (SOM)…and broader CRM function. In a nutshell, it is a natural extension of ServiceNow’s existing operational management expertise.
For ServiceNow: A Strategic Growth Play
- Fills a Key Platform Gap
ServiceNow has strong workflows for IT (ITSM), customer service, and HR—but lacked native CPQ capabilities. Logik.ai plugs that gap, enabling ServiceNow to manage quoting, pricing, and configuration directly within its platform. This is a natural extension into SOM. - Moves Toward CRM Without Full CRM Bloat
CRM is a behemoth to take on. Rather than trying to replace Salesforce or Microsoft Dynamics outright, ServiceNow is focusing on operational CRM—where deals are priced, configured, closed, fulfilled, and serviced. That’s an area with less competition and more customer pain. Smart move. - Accelerates AI Strategy
Logik.ai’s composable, AI-powered engine supports ServiceNow’s broader vision of becoming the “platform of platforms.” It’s also aligned with their Now Assist and GenAI roadmap—bringing automation to business-critical, revenue-generating and customer-focused workflows. Add in the acquisition of Moveworks and one can quickly see where this is headed.
For Customers: Simpler, Smarter Sales Ops
- End-to-End Workflow Automation
For customers already using ServiceNow for post-sale workflows (like service or fulfillment), the addition of CPQ means fewer integrations and manual handoffs. Leveraging an AI-driven CPQ solution translates to faster time to quote, fewer errors, and smoother handoffs across teams. - Reduced Complexity and Cost
Instead of bolting on a separate CPQ system and integrating it, customers can manage the entire sales-to-service lifecycle on a single platform—cutting integration overhead and simplifying support. - Scalable and Flexible Architecture
Logik.ai’s composable approach means customers aren’t locked into a monolithic CPQ system. They can scale capabilities as needed and customize workflows based on their business model. - Better AI-Driven Decisions
With Logik.ai’s AI baked in, customers can generate more accurate pricing, optimize product configurations, and gain actionable insights to drive revenue and improve sales velocity.
The CIO Perspective
For CIOs, it’s a clear sign that ServiceNow is positioning itself as a strategic backbone for enterprise operations—not just IT. Capitalizing on their existing expertise in service management across a number of domains, ServiceNow is capitalizing on their operational mindset to expand their reach into the CRM space. Fuel the operational mindset with AI insights and you have a powerful one-two combination.
While ServiceNow may not directly compete (today) with the likes of Salesforce, Oracle and Microsoft Dynamics, two things are clear. First, ServiceNow is focused on making smart plays to acquire AI technology to accelerate the value of operational processes beyond service management across the enterprise. And second, ServiceNow is chipping away at the CRM pie one operational function at a time. By taking a measured approach, ServiceNow has the potential to pickup core CRM functions without having to compete across the classic portfolio.