ServiceNow (NOW) Citi’s 2026 Global TMT Conference summary

Customer engagement and AI adoption

• AI is a top priority for customers, driving both productivity and business model innovation.

• Security and risk concerns remain the main obstacle to large-scale AI deployment.

• AI Control Tower enables customers to manage, govern, and secure AI and other tech assets centrally.

• Customers can optimize costs, manage ROI, and control AI usage through the Control Tower.

• The focus on AI management and security is the leading topic in customer conversations.

Product innovation and pricing strategy

• New AI-native packaging and pricing tiers (Foundation, Advanced, Prime) allow flexible adoption based on customer readiness.

• Pricing uplifts for AI tiers range from 20%-30%, with no increase for non-AI base SKUs.

• Over 50 customers now pay $1 million+ for new AI packages, with a 45% increase in first-time AI buyers in Q2.

• Realized pricing uplifts match expectations, supporting strong value capture.

Agentic automation and customer impact

• Early adoption of agentic labor (L1 specialists) shows strong results, such as 98% accuracy and 65% cost reduction in IT service desks.

• Large enterprises are automating hundreds of thousands of service requests, generating millions in savings.

• Consumption-based model is driving increased usage and early renewals.

• Usage of AI credits increased 9x from Q1 to Q2, exceeding initial expectations.