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ServiceNow’s $1 Billion AI Lesson for Indian IT
- ServiceNow projects its generative AI product, Now Assist, to reach $1 billion in annual contract value by 2026, representing a significant increase from its current $250 million.
- ServiceNow's CFO emphasized that AI is a billion-dollar business line for the company, with customers spending 60% more on products after upgrading to AI-enhanced versions.
- ServiceNow's stock has risen by 20% since April 23, showcasing market approval for its AI initiatives.
- ServiceNow's annual revenue is projected to surpass $13 billion in 2025, outperforming leading Indian IT firms like TCS, Infosys, HCLTech, and Wipro.
- ServiceNow has launched a new AI Platform and CRM AI-first platform, with the latter experiencing rapid growth with an ACV of $1.4 billion.
- ServiceNow CEO Bill McDermott highlighted the company's focus on enterprise AI, recording significant growth in deals featuring Now Assist AI products.
- Indian IT firms such as TCS, Infosys, Wipro, HCLTech, and Tech Mahindra have been criticized for 'AI washing', emphasizing AI without disclosing revenue attribution.
- Analysts point out that Indian IT firms need to learn from ServiceNow's approach of embedding AI into platforms for scalability and impactful business transformation.
- HCLTech is notable for reporting GenAI-focused deals, while Tech Mahindra is pushing AI into the core of its operations with projects like Indic LLM, but revenue impact remains unclear.
- ServiceNow demonstrates a valuable lesson in AI adoption by reshaping product lines, reengineering workflows, and focusing on monetization, highlighting the revenue potential of AI for businesses.
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