ServiceNow’s Now Assist AI Set to Hit $1 Billion Milestone Amid Economic Uncertainty

ServiceNow has announced that its flagship AI product, Now Assist, is set to reach an annual contract value milestone of $1 billion by next year. This revelation was made by CFO Gina Mastantuono during the company's annual event, indicating strong market demand despite current economic uncertainties. Currently, the product already boasts an annual contract value exceeding $250 million, underscoring significant customer commitment.

ServiceNow has been focusing on developing software applications aimed at automating HR and IT operations, with a strategic push to integrate generative AI into its offerings over the last two years. This move includes introducing higher-tier subscription levels that leverage AI tools for various tasks through simple command inputs.

The company's stock has surged by 20% since it posted a quarterly sales forecast surpassing analyst expectations in April. This suggests that the demand for ServiceNow's AI software remains robust, even amid ongoing economic challenges like the recent increase in US tariffs.

Mastantuono shared that, upon upgrading to access AI features, some customers have increased spending on ServiceNow products by 60%. She emphasized the remarkable appeal of these autonomous AI capabilities and the significant benefits they bring.

In a survey targeting US IT executives with annual revenues surpassing $1 billion, 93% expressed high interest in applying autonomous AI to supervise business processes effectively. Executives are transitioning hype around AI into actionable strategies, recognizing its potential in streamlining sales funnels, providing real-time data analytics, enhancing personalized customer experiences, onboarding processes, incident resolution, fraud detection, financial compliance, and optimizing supply chains.

"We are not merely automating manual tasks and processes within one or two departments," noted Kellie Romack, ServiceNow's Chief Digital Information Officer. "We are embedding autonomous AI into every aspect of our operations, reimagining how we work, and creating measurable value."