ServiceNow (NOW) 46th Annual William Blair Growth Stock Conference summary

AI strategy and platform innovation

• AI is deeply integrated into the workflow orchestration platform, enhancing automation, efficiency, and business outcomes for enterprise customers without disrupting existing systems.

• The platform leverages a proprietary Context Engine and Workflow Data Fabric to provide actionable insights and high accuracy by combining customer data with unique metadata.

• AI-enabled systems are designed to be agentic, supporting both internal and third-party agents, and focus on delivering outcomes rather than just data access.

• The platform remains open and interoperable, allowing integration with various models, clouds, and engagement layers, while maintaining strong governance and security.

• AI Control Tower provides centralized visibility, governance, and security for all AI systems, including third-party integrations, enhancing customer trust and compliance.

Monetization and pricing evolution

• Pricing has shifted from a seat-based model to a hybrid structure, combining seat licenses with usage-based entitlements for AI capabilities.

• The new pricing model, including Pro Plus and Now Assist SKUs, offers predictable costs and flexibility, resonating well with customers and driving significant revenue growth.

• Over 50% of net new business revenue is now non-seat based, reflecting the shift toward consumption-based monetization.

• AI is embedded across all SKUs, making it a foundational element of the product suite and simplifying go-to-market strategies.

Customer adoption and enterprise impact

• AI adoption has accelerated, with 70% of customers using AI in pre-production or production environments, leading to increased usage and expansion across departments.

• Barriers to adoption, such as security, governance, and use case identification, have been addressed through AI Control Tower, prescriptive use cases, and specialist engineering support.

• Customers see rapid ROI as agentic solutions reduce manual labor and accelerate business processes, unlocking further use cases after initial success.