The value of AI in CRM is real. Customer interactions produce huge volumes of high-quality, well-governed data; unleashing AI on this data lets organizations summarize and surface key insights, predict the best actions to take, and start pursuing goals autonomously. The result? Increased productivity and effectiveness for the front office, which enables organizations to deliver on the promise of better customer relationships, better customer retention, and increased revenue.
Yet this wave of AI innovation catapults the CRM market into a moment of reckoning. CRMs have become overengineered, and their complexity erodes their value. AI features add a further layer of complexity and business decisions around their use. The latest Forrester Wave™ evaluation for CRM — The Forrester Wave™: Customer Relationship Management Software, Q1 2025 — tells a story of a market on the cusp of massive change, one that requires a strategic shift toward simplification, UX, and potentially a reevaluation of its core value propositions.
Decoding The CRM Wave
If you look at the CRM Wave graphic, you will see three broad categories:
The Leaders: These are the usual suspects that win because they have it all: the most features, the most aggressive strategies, and the broadest networks of partners and supporting services that bolster their CRM in the market. They were the first to market with AI. But this wealth of richness also impacts their adoption. Some of these vendors that offer a unified platform, AI at its core, and have a heritage of automating end-to-end business processes are well poised for success for the next iteration of this market.
The Strong Performers: These vendors can’t beat the Leaders with strength alone. But they win by offering the CRM market something new — such as truly composable architectures, low-code platform strength, scalable product-led growth that drives real adoption, or a new take on what CRM should be. Examine these vendors carefully, as they are well aligned with the future.
The Contenders: Each of these vendors offers something unique. Some have chosen to back away from being an all-in-one CRM or have doubled down on what they truly excel at. Others have focused on niche markets that they dominate.
I grew up in Canada watching Wayne Gretzky become one of the greatest hockey players of all time. His words ring true today: “Skate to where the puck is going to be, not where it has been.” As you choose your next CRM, remember these words.
Connect with me over inquiry to chat further about this market or brief me on your CRM software.
