https://ca.finance.yahoo.com/news/ai-bubble-helping-hurting-software-080008548.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAE1Sr-Rc1ZcvA6BZ_-fsEOYhlNLtf_euN5w
AI isn’t disrupting government operations — it’s revealing how outdated CRMs already are.
AI didn’t break the system— it exposed just how fragile the old infrastructure really is.
For years, governments have tried to retrofit CRM systems into their operations, hoping tools built for sales teams could somehow manage the complexity and velocity of public service. It never worked—but it was manageable enough that nobody had to confront the truth.
AI changed that.
Not because AI disrupted government operations, but because it exposed how outdated the underlying infrastructure already was. When volume increases, expectations accelerate, and issues spread faster than staff can triage, the cracks in legacy systems stop being theoretical—they become operational failures.
RBC’s latest software outlook captures this moment clearly. Investors are openly questioning the durability of CRM-era platforms. Even in the private sector, Salesforce—the supposed backbone of modern CRM—is being scrutinized for whether it can survive the AI transition. If the commercial world is struggling to justify CRM in 2026, government has absolutely no chance of relying on it in the years ahead.
CRMs were built for structured pipelines, predictable workflows, and linear relationship management. Government operations are none of those things. They involve rising volume, unpredictable escalation, geographic nuance, and accountability cycles that reset daily. The mismatch isn’t subtle. It’s foundational.
Shiv Raj
CEO & Founder - KYRP.ca