As the global need for IT operations continues to grow, ServiceNow is riding the tailwind to grow its business.
ServiceNow reported strong fourth-quarter and full-year 2023 results this week, fueled by the company's focus on artificial intelligence (AI) and digital workflows. For the quarter, revenue rose 26% to $2.44 billion.
ServiceNow aims to be at the forefront of the workflow and AI intelligence revolution, according to Chairman and CEO Bill McDermott. With new AI capabilities layered on top of its workflow products, ServiceNow expects to power the next phase of digital transformation.
"We have a long track record of commercializing breakthrough technologies," McDermott said during his company's earnings call.
ServiceNow's Now Platform Had a Busy 2023, Thanks to AI
ServiceNow's flagship technology is the Now platform, which has a host of IT operations management (ITOM), IT service management (ITSM), and IT asset management (ITAM) functionality and associated workflow capabilities.
ServiceNow unveiled the Vancouver release of its Now Platform in September 2023, with a very strong infusion of generative AI capabilities. The Now Assist generative AI functionality is integrated across multiple services in the Now platform, providing AI-assisted workflows to offer summarization, self-service, and answers for IT service management (ITSM), Customer Service Management (CSM), Human Resources Service Delivery (HRSD), and code development (Creator).
During the earnings call, McDermott cited numerous examples of AI use cases across industries, such as automating clinical trial documentation in healthcare and enabling same-day repairs for home appliances.
A new and emerging deployment is with credit card giant Visa that was announced the same day as ServiceNow reported earnings. ServiceNow and Visa announced a five-year strategic alliance to transform payment service experiences. In the initial phase of the alliance, the companies will launch ServiceNow Disputes Management built with Visa, a single connected solution for dispute resolution. This GenAI-powered solution will offer end-to-end dispute resolution for customers globally, covering everything from the first indication of a questionable charge through early investigation to final resolution.
"Artificial intelligence is injecting new fuel into our already high-performing growth engine," McDermott said.
How AI Is Improving ServiceNow Workflows, Including Its Own
The company is also leveraging AI to boost its own operations. McDermott noted that ServiceNow uses its Legal Service Delivery product to automate contracting workflows.
"AI tells us that we're spending too much time on contracts less than $250K," McDermott said. "Our office of general counsel made the decision based on AI that we could fundamentally change that and reorient the workflow around those kinds of agreements, which gave us a huge rush, and he didn't have to hire anybody."
This internal productivity allows ServiceNow to innovate more quickly for customers.
"Now Assist for field service management reduces cost while increasing revenue by helping technicians get the job done on the first visit," explained McDermott.
Core ITSM, ITOM, and ITAM Lead the Way
ServiceNow reported ongoing robust performance in its core ITSM, ITOM, and ITAM products during its Q4 2023 earnings release. These foundational workflow offerings continue to drive significant growth for the company.
ITSM allows companies to track and manage IT service issues and requests, while ITOM provides monitoring and automation for IT infrastructure and operations. ITAM gives visibility into IT assets across the enterprise. Together, these products enable customers to optimize IT service delivery.
"Our ITSM, ITOM, and ITAM each had double-digit deals over $1 million in Q4," noted McDermott.
The company is seeing strong customer demand as organizations look to digitize and automate key IT workflows. With strong adoption of new AI capabilities and progress across key metrics, ServiceNow delivered upbeat commentary about its future opportunities.
"We're building a masterpiece here, and we're only getting started," McDermott said. "2024 will show that we're putting AI to work for the world because now, as ever, the world works with ServiceNow."
About the authorSean Michael Kerner is an IT consultant, technology enthusiast and tinkerer. He consults to industry and media organizations on technology issues.