Rivals Salesforce and ServiceNow in Talks to Jointly Invest in Cloud Services Firm Genesys

MENLO PARK, Calif., August 1, 2025 — Salesforce and ServiceNow have each invested approximately $750 million in the cloud services company Genesys Cloud Services, a unique case of competitors in the enterprise software sector supporting the same company.

As per Zhitong Finance, Salesforce and ServiceNow are holding talks to each invest approximately $750 million in cloud service company Genesys Cloud Services.

This is a rare case, where competitors in the enterprise software sector supporting the same company. Notably, Genesys develops customer contact center software based on Artificial Intelligence (AI) technology. The $1.5 billion investment has been announced in a statement. Quoting sources media reports have pegged Genesys to be valued at around $15 billion.

What will Genesys Use the Funds for?

As per Genesys, it will use these funds to repurchase shares held by some shareholders. However, the company will continue to be controlled by Hellman & Friedman and Permira. The investment is expected to be completed by the end of Genesys' fiscal year 2026.

Genesys software uses AI to automate customer service functions, including scheduling and summarization tools, as well as predictive features to anticipate user needs.

Major software platforms, including Salesforce and ServiceNow, are sprinting to introduce AI agents capable of completing tasks without human guidance.

The CEO of Genesys said, “We believe this demonstrates the growing momentum in agent-based AI and highlights the importance of building strong customer relationships and delivering autonomous service experiences.”

Brief Timeline of Genesys and Way Forward

Previous Investments: Genesys is traditionally known to have seen transactions and was a subsidiary of Alcatel-Lucent until 2012. In 2012, Permira acquired the company for $1.5 billion. In 2016, Genesys acquired Interactive Intelligence, which helped in building its cloud platform. Hellman & Friedman first invested in Genesys that year, valuing the company at $3.8 billion.

Company Synergy: Both companies have become supporters. Salesforce's venture capital arm led a funding round in 2021, valuing Genesys at $21 billion. ServiceNow Ventures, Zoom Video Communications, Blackrock, and D1 Capital Partners also participated in the funding round.

Seasoned Top Brass: The Chairman and CEO of Genesys has a distinction of being a seasoned technology expert, who has worked at companies including GoPro, Skype, and Cisco. Genesys has been seeking an initial public offering (IPO) and selected underwriters last year to advance the listing process. The company also made similar preparations in 2022.

Business Cooperation: ServiceNow and Salesforce have kickstarted a robust business cooperation this year. In May, Salesforce agreed to acquire Informatica for $8 billion to gain access to its products that help clients manage data in the cloud. ServiceNow also announced its largest trade to date, the acquisition of MoveWorks, a startup that uses artificial intelligence to assist with employee requests.

Use of AI Vital But Human Touch Needed

In an authored article published in Financial Times last month, Salesforce CEO Marc Benioff admitted that AI is now responsible for handling 85 percent of the company's customer service interactions, marking a paradigm shift in workforce roles within the tech sector.

In the op-ed published by the Financial Times and widely cited by Fortune, Benioff described AI as a transformative force, drastically reshaping operations at Salesforce and across the broader enterprise software landscape.

Benioff said AI has an important role but stressed the need for humans to remain “at the centre of the story,” stating that compassion and connection, which come naturally to humans, remain irreplaceable.

However, the rapid uptake of AI in business operations is also prompting concerns about job displacement and a growing gap between workforce readiness and emerging industry demands.

AI’s Growing Footprint in Salesforce Operations

As per Benioff, AI has taken over a sizeable portion of core functions at Salesforce. Besides customer service, where AI agents now resolve 85 percent of queries, AI is also responsible for generating 25 percent of net new code within the company's research and development teams.

“Jobs will change, and as with every major technological shift, some will go away, and new ones will emerge,” Benioff wrote in the Financial Times, as quoted by Fortune.

Despite the fast-emerging tech landscape, Benioff believes that AI should be a tool to enhance rather than replace human potential. “AI is not destiny,” he wrote in the Financial Times, as quoted by Fortune.

Genesys is traditionally known to have seen transactions and was a subsidiary of Alcatel-Lucent until 2012.

Inputs from Saqib Malik

Editing by David Ryder