This staid software company is kicking butt in AI. The CEO explains how.

• ServiceNow reported a jump successful quarterly gross while profit soared.
• The institution is getting existent customers to salary much for generative AI services.
• CEO Bill McDermott said pinch Business Insider astir ServiceNow's applicable attack to GenAI.

ServiceNow is not a family name. It sells unreality package that handles a batch of nan humdrum tasks that make modern companies tick.

You could moreover opportunity it's boring, particularly compared to flashy AI companies specified arsenic OpenAI.

What's astonishing is that this profoundly unsexy business is kicking butt successful generative AI by doing thing that immoderate of nan much celebrated tech companies person struggled to do truthful far: ServiceNow is trading AI-powered products that customers really find useful and are consenting to salary for.

On Tuesday, nan institution reported a 22% jump successful quarterly revenue, and said profit soared 44%. New aliases upgraded GenAI offerings, specified arsenic Now Assist and Pro Plus, helped thrust immoderate of this growth.

"These results are based connected nan spot of generative AI customers," CEO Bill McDermott said successful an question and reply connected Tuesday. "While others are talking astir generative AI, we are delivering it."

Now Assist growth

Now Assist is simply a ServiceNow level that uses generative AI to automate and streamline tasks, including IT, Human Resources, customer service, analytics, and proviso concatenation management.

McDermott said this offering is nan fastest-growing merchandise successful nan company's 20-year history. Companies including EY, Lloyds Bank, Cognizant, Nvidia and Zoom are Now Assist users.

"They each want to radically summation nan timepiece velocity of their companies," McDermott said. "We are trying to thief customers automate workflows and amended nan measurement decisions are made. Cost takeout and caller income are imaginable connected nan backmost of this platform."

He said he's seen caller examples of companies paying astir an other 33% for generative AI versions of ServiceNow's products. That's because they tin make a higher return than that erstwhile they usage this caller software, he explained.

"We build generative AI pinch customer ROI successful mind. Otherwise, we don't do it," McDermott added.

He cited nan London Stock Exchange Group, which is utilizing Now Assist to summarize IT incidents. Tasks for illustration this utilized to return 1.5 hours and tin now return conscionable 5 seconds, he explained.

BT, formerly British Telecom, is utilizing Assist Now to thief support agents pinch tasks specified arsenic penning lawsuit summaries and reviewing analyzable notes. This has reduced nan clip spent connected this activity by astir 55%, according to McDermott.

He described different example: An worker is taking parental time off to attraction for a caller child. It tin beryllium daunting to capable retired each nan forms and travel nan processes of their company's HR system. ServiceNow's generative AI offerings tin instantly update this employee's position and alteration their healthcare and benefits plans automatically and instantaneously.

"The extremity is to springiness you backmost immoderate clip and free labor from nan soul-crushing aspects of work," McDermott said, noting that labor jump betwixt 17 different applications connected mean astatine work.

"Our GenAI exertion tin trim nan request to move for illustration this, which gives group backmost time," he added. "This is giving them astir 1.5 days successful productivity backmost per week."

Companies will salary for that, he said.