ServiceNow launched case summarization and text-to-code generative AI tools built on its ServiceNow LLM, which is optimized for its platform. On the commercialization front, ServiceNow said it will introduce new premium generative AI offerings across IT service management, customer service management and HR service delivery in September with its Vancouver platform release.
Large language models (LLMs) are a big focus for enterprises looking to add generative AI capabilities to improve productivity. ServiceNow's approach is to create purpose-built generative AI capabilities that can be deployed quickly across IT, HR and customer service cases. The two new use cases are part of ServiceNow's Now Assist family of generative AI features. ServiceNow's Generative AI Controller enables enterprise to connect to ServiceNow instances, Microsoft Azure OpenAI Service and OpenAI API LLMs.
Premium SKUs for generative AI features are also a big topic since it can fuel ServiceNow's growth. ServiceNow saw strong growth for its current premium offerings, ITSM Pro and CSM Pro and it's likely that technology buyers will be kicking the tires on the company's generative AI "Pro Plus" offerings. ServiceNow is lining up partners such as KPMG to reinvent finance, supply chain and logistics using its platform. ServiceNow also launched AI Lighthouse, a program with Nvidia and Accenture to speed up enterprise generative AI deployments.
ServiceNow CEO Bill McDermott said the company "is already seeing our own significant productivity increases with the generative AI solutions we're releasing to the market."
In the second quarter, ServiceNow topped estimates on multiple fronts.
The company saw subscription revenue growth of 25% compared to a year ago. ServiceNow had 70 transactions worth more than $1 million in net new ACV and 45 customers with more than $20 million in ACV. ServiceNow reported second quarter revenue of $2.15 billion, up 23% from a year ago, with net income of $1.04 billion, or $5.08 a share. Non-GAAP earnings for the second quarter were $2.37 a share.
"We have more than 1 trillion workflows running through ServiceNow each year. Our trajectory is being supercharged by generative AI," said McDermott.
McDermott said large deals for ServiceNow were evenly distributed across products in the second quarter and the company saw sustained demand.
Previously:
As for the outlook, ServiceNow projected third quarter subscription revenue growth of $2.18 billion to $2.19 billion, or about 26% growth from a year ago. For 2023, ServiceNow is projecting subscription revenue growth of $8.58 billion to $8.6 billion, or about 25% growth.
Constellation Research analyst Andy Thurai said:
"It is no surprise that ServiceNow is doing some generative AI use cases. What is good is that ServiceNow trained its own LLM instead of using one of the existing LLMs which would have raised a lot of security, privacy, tenancy, and data sharing questions. However, this will obviously bring the question of the accuracy of these models compared to the other existing high-performance models such as LLAMA and also the question of how often it will be retrained, etc. Assuming those issues are addressed and mitigated, I really like the case summarization use case. Summarization from documents is one of those cool low risk use cases where Generative AI can perform really well."
ServiceNow LLM is engineered to save time and speed up resolution time. Here are the key points:
- ServiceNow LLM is proprietary and part of the Now Assist family of generative AI features.
- Text-to-code converts natural language text prompts to executable code for the Now Platform.
- Case summarization streamlines essential information to simplify resolution processes and automate manual data entry.
- ServiceNow LLM was built on a specialized version of the 15 billion parameter StarCoder LLM.
- ServiceNow LLM was trained and tuned with Nvidia accelerated computing and DGX Cloud.
According to ServiceNow, case summarization and text-to-code are available to a limited set of customers and will be generally available in the ServiceNow Vancouver release in September.
