If you’ve been around the Application Managed Services (AMS) space for the last 15 years, you’ve seen it change.
We’ve gone from babysitting servers and application uptime, to evolving into “application as a service” models where the value is less about patching boxes and more about being subject matter experts, guiding customers, safeguarding investments, and helping them follow best practices.
That model is already shifting again. And it’s being driven by the tidal wave of AI adoption.
The New Frontier: From Application Managers to AI Practitioners
According to Gartner, 79% of CIOs say they are investing in or plan to invest in generative AI within the next two years. At the same time, CEOs and boards are demanding clarity on how AI will drive productivity, cost savings, and competitive advantage.
The truth is, AI isn’t a “set it and forget it” tool. Left unattended, it can hallucinate, drift, or simply miss the mark. That’s why AMS providers who once focused on platform expertise are going to need to evolve into AI managers and practitioners: people who can refine the instructions, monitor outputs, and ensure quality.
As ServiceNow puts it: “With AI Agentic Workflows, you’re not just setting up automation—you’re training digital coworkers that can plan, reason, and get things done.”
Why This Isn’t About Replacing Jobs
There’s a natural fear that AI is here to replace people. But I see it differently. This isn’t a job replacement… it’s a job evolution.
Think about it: email didn’t eliminate office workers, it just retired the fax machine. The same is true here. Tools like ChatGPT, Gemini, and Copilot are already commonplace. But the real leap forward will come from enterprise-grade tools like ServiceNow’s Now Assist and the ability to build and deploy AI Agents.
These agents won’t just suggest a resolution, they’ll orchestrate actions across systems, collaborate with humans when needed, and turn common, repetitive tasks into massive time savings.
But just like any good coworker, they need training, guardrails, and refinement. That’s where Managed Services teams step in.
What Customers Will Need
Managed Services providers of the future won’t just need platform developers; they’ll need:
- AI Stewards – ensuring data quality, governance, and compliance.
- Prompt Engineers – crafting the “instructions” that make AI outputs accurate and relevant.
- Reliability Engineers – monitoring and testing AI agents for accuracy, efficiency, and explainability.
- Change Leaders – helping organizations adopt AI in ways that feel empowering, not threatening.
Betting on the Next Era of AMS
If I was a betting man, I’d put my chips on this: the Managed Services space will evolve from being platform enhancement-driven to AI-practitioner-driven.
The winners will be the teams that position themselves as the creative minds, the quality checkers, and the AI subject matter experts who keep businesses ahead of the curve.
Or as ServiceNow frames it: “We used to design services. Now we’re designing the thinking behind them.”
That’s the real opportunity here.
At Stridepath Consulting, we’ve already begun that journey with our PATH Forward Managed Services. Our goal is simple: give customers the confidence that as AI accelerates, they’ll have trusted partners helping them adopt it responsibly, scale it effectively, and evolve with it.
Because AI isn’t the future… it’s the present. And Managed Services is about to get a whole lot more interesting.
For more information or to schedule a call with our team, drop a note to [email protected]!
About the Author: Jameson Ford is a Managed Services leader with over 20 years specializing in flexible, results-driven solutions that adapt to client needs. As Director of Managed Services at Stridepath Consulting, he drives PATH Forward, which combines practical support with strategic guidance across the ServiceNow Platform. His focus is on delivering measurable value and transforming client visions into scalable successes, empowering them to meet today’s business challenges with confidence.
