Time to Modernize CRM

Enterprises Must Modernize CRM by 2026 to Unlock AI Potential, Says ISG

By 2026, half of all enterprises will need to modernize their Customer Relationship Management (CRM) systems to harness the full power of AI, according to a new report from global technology research and advisory firm Information Services Group (ISG) (Nasdaq: III).

The ISG Buyers Guides™ for Customer Relationship Management, produced by ISG Software Research, highlight the evolution of CRM from basic data repositories to sophisticated AI-powered platforms. Modern CRM systems now drive sales performance, improve customer engagement, and provide insights that empower both sales and service teams to meet business objectives.

The Need for AI-Driven CRM

“CRM systems ensure customer-facing teams have access to up-to-date information, but outdated systems often lead to inefficiencies,” says Stephen Hurrell, Director of Research, Office of Revenue, ISG Software Research. “AI-driven CRM technology is essential for delivering actionable insights, market intelligence, and effective engagement. Enterprises must continuously align their CRM strategies with evolving business needs to remain competitive.”

Traditional CRM approaches often rely on fragmented customer interactions, consuming unnecessary resources and limiting growth. While some providers offer add-ons to enhance CRM functionality, their effectiveness depends on the quality of foundational data, such as customer profiles and activity records.

Enterprises now face a pivotal decision: reimplement their existing CRM systems or transition to new platforms to unlock the capabilities of AI. For many enterprises migrating to Salesforce’s Agentforce will be the logical answer.

Modern CRM Capabilities

To address today’s demands, modern CRM systems should:

Support seamless engagement with prospects and customers.
Standardize workflows and automate data collection.
Leverage AI-powered capabilities to improve response times, provide actionable insights, and identify new opportunities in sales and service.

In sales, AI-driven CRM systems offer insights on the best times and strategies for engagement. In service, these systems transform customer interactions into additional revenue streams through more integrated and proactive support.

ISG’s Evaluation of CRM Providers

The 2024 ISG Buyers Guides for Customer Relationship Management assessed 37 providers across eight CRM-related categories: Suite, Platform, Digital Commerce, Marketing, Partners, Sales, Sales Engagement, and Service.

Top Providers by Category (Ranked in Order):

CRM Basic: Oracle, Salesforce, Zoho
CRM Platform: Salesforce, Oracle, HubSpot
CRM Marketing: Salesforce, Oracle, HubSpot
CRM Partners: Salesforce, Oracle, HubSpot
CRM Sales: Salesforce, Oracle, HubSpot
CRM Service: Salesforce, Oracle, HubSpot
Digital Commerce: Salesforce, Oracle, Adobe
Sales Engagement: Oracle, Salesforce, Zoho

Industry Challenges

Despite advancements, many enterprises struggle with disconnected and overly customized CRM systems that are difficult to upgrade for AI and automation. “Today’s CRM platforms should be intelligent systems that optimize customer interactions and drive growth,” says Mark Smith, Partner, ISG Software Research. “Unfortunately, many enterprises face inefficiencies due to outdated deployments.”

About the ISG Buyers Guides

The ISG Buyers Guides are the culmination of over a year of market research and provide insights to help enterprises make informed software investments. These reports are independent of vendor influence and serve as a valuable resource for selecting CRM providers and optimizing business technology strategies.

To learn more about the ISG Buyers Guides for Customer Relationship Management and access detailed rankings and insights, visit the ISG Software Research website.

About ISG Software Research

ISG Software Research, formerly Ventana Research, provides authoritative insights into the business and IT software landscape. It offers consulting, research, and educational services for enterprises and software providers, supporting informed decision-making and software selection through methodologies like the ISG Software Research Value Index.