Navigating the AI and Automation Investment Landscape: Opportunities Amid iRobot's Collapse and ServiceNow's Strategic Move

ServiceNow's Strategic Move: Building an AI Ecosystem

ServiceNow, by contrast, has embraced AI not as a bolt-on feature but as the foundation of a new enterprise operating system. Its Zurich platform, launched in Q3 2025, exemplifies this approach. By enabling multi-agent development, secure integrations, and advanced governance, the platform allows businesses to deploy AI at scale while maintaining compliance and transparency. The results are striking: AI products now account for a significant portion of ServiceNow's growth, with its AI Control Tower and Now Assist tools driving efficiency gains across workflows.

The company's success is also rooted in strategic partnerships. Its collaboration with NVIDIA, for instance, has accelerated the deployment of scalable AI agents through Apriel 2.0 and NVIDIA AI Factory architectures. Meanwhile, the establishment of an AI Institute in West Palm Beach-a $1.8 billion economic catalyst-highlights ServiceNow's commitment to fostering talent and innovation in regions where AI adoption is still nascent. These moves position ServiceNow not merely as a vendor but as a steward of enterprise transformation, a role that aligns with the sector's shift toward platforms that integrate AI into every layer of operations.

The GenAI Divide: Why 95% of AI Investments Fail

The stark divergence between iRobot and ServiceNow mirrors a broader industry trend: the "GenAI Divide." According to a report by Innovative Human Capital, 95% of enterprise AI investments in 2025 fail to deliver measurable returns, while the top 5% succeed by treating AI as a capability to be cultivated rather than software to be deployed. ServiceNow's growth-projected to hit $13.2 billion in revenue in 2025-demonstrates the power of this approach. By embedding AI into workflows (e.g., predictive incident classification, generative chatbots), the company has moved beyond automation to enable autonomous decision-making.

Conversely, iRobot's struggles highlight the risks of viewing AI as a cost-cutting tool rather than a value-creation engine. While the company experimented with AI-enhanced navigation, it failed to integrate these innovations into a broader ecosystem of services or data-driven insights. As a result, it remains trapped in a commodity race, competing on hardware margins rather than software-driven differentiation.

Asymmetric Opportunities: Where to Invest in 2025

For investors, the lesson is clear: the AI and automation sector is not a monolith. Asymmetric opportunities lie in companies that build platforms capable of continuous learning, adaptation, and integration. ServiceNow's expansion into CRM, CPQ, and cybersecurity-powered by AI-illustrates this potential. Its Security Operations module leverages AI to detect vulnerabilities and automate incident response, addressing a critical pain point in an era of escalating cyber threats. Similarly, its partnerships with AWS, UKG, and Cisco underscore the importance of ecosystem-driven innovation.

Conversely, companies like iRobot that lack a coherent AI strategy or fail to adapt to platform-based models are likely to face continued headwinds. The collapse of iRobot's cash reserves and revenue underscores the financial risks of incremental innovation in a sector where scale and speed are paramount.

Conclusion: The Future Belongs to the Ecosystems

The AI and automation investment landscape in 2025 is defined by two realities: the collapse of legacy models and the rise of AI-driven ecosystems. ServiceNow's strategic moves-rooted in platform expansion, AI integration, and ecosystem partnerships-offer a blueprint for success in this environment. Meanwhile, iRobot's struggles serve as a stark reminder of the perils of stagnation. For investors, the path forward lies in identifying companies that treat AI not as a tool but as a transformative force, capable of redefining industries and creating durable value.