The AI Advantage: How ServiceNow is Hijacking the Generative AI Revolution
In a shocking turn of events, ServiceNow has emerged as the clear leader in the generative AI space, thanks to its unprecedented access to data and a deliberate strategy to focus on practical applications. While other SaaS vendors are still struggling to make sense of the AI landscape, ServiceNow is already reaping the benefits of its investment in AI.
The Data Advantage
ServiceNow’s unique position is due to its ability to tap into the vast amounts of data within its own platform. This has allowed the company to build more business-centric models that are actually useful to customers. As Chris Bedi, ServiceNow’s CIO, puts it, "A model is only as good as the platform. If it’s part of a great model, but it’s not attached to an experience, not attached to a workflow, what’s the point?"
The Focus on Practicality
ServiceNow is not just throwing AI at its customers; it’s actually focused on building practical applications that can be used to improve workflows and processes. This approach has been praised by analysts, who note that the company is making a deliberate effort to focus on the needs of its customers.
The Three-Pronged Approach
Bedi divides ServiceNow’s generative AI capabilities into three broad areas: dealing with requests, helping agents do their job better, and speeding up innovation. The company is also building AI into all its workflows, ensuring that customers can get the most out of its technology.
The Broad Approach
ServiceNow is taking a unique approach to AI, combining in-house development with acquisition and partnerships. This allows the company to leverage the strengths of its partners while also building its own AI capabilities. As Holger Mueller, an analyst at Constellation Research, notes, "ServiceNow needs a diverse strategy for a few reasons. First of all, ServiceNow customers have a wide range of AI partnerships, and they want ServiceNow to leverage and cohabitate with them."
The Financial Benefits
ServiceNow’s AI strategy is paying off financially, with customers willing to pay a premium for its new Pro-Plus SKUs. As Arjun Bhatia, a financial analyst at William Blair, notes, "While it is still early, ServiceNow highlighted strong demand trends for its new Pro-Plus SKUs as enterprises look for ways to invest in gen AI."
The Future of Work
Bedi believes that the future of work will be shaped by AI, with machines taking over repetitive tasks and humans focusing on more creative and strategic work. He sees AI as a tool that can help companies reimagine every part of how work gets done, and is working to build a platform that can help customers achieve this vision.
The AI Control Tower
ServiceNow has built an AI platform called AI Control Tower to help provide a unified experience for developers building applications in-house. This platform allows engineers to pick whichever model they want, without having to worry about the underlying complexity. As Bedi notes, "The whole idea is giving engineers the freedom to pick whichever model they want, and not have to do all the extra work of managing whatever is required they do differently, based on their choice."
The Cybersecurity Concerns
As AI becomes more pervasive in the enterprise, cybersecurity concerns are becoming increasingly important. ServiceNow is addressing these concerns by managing its models like any other IT object, ensuring that they have a cyber posture and operational resilience.
The Conclusion
ServiceNow’s approach to generative AI is a game-changer for the industry. By focusing on practical applications and building a platform that can help customers reimagine every part of how work gets done, the company is poised to dominate the AI landscape. As Bedi notes, "We’re really going from the core use cases for generative AI to reimagining every part of how work gets done."
