EY and ServiceNow Expand Strategic Alliance to Provide Solutions for Generative AI Compliance, Governance and Risk Management

Rhea-AI Summary

EY and ServiceNow have expanded their strategic alliance to provide solutions for generative AI compliance, governance, and risk management. They aim to amplify EY capabilities on ServiceNow's risk management solutions and enhance experiences for EY professionals and clients using Now Assist GenAI capabilities. The new offerings are expected to improve the management and governance of AI, driving proper compliance with regulatory requirements and promoting ethical, transparent, and accountable business practices.

Insights

Market Research Analyst

ServiceNow's (NYSE: NOW) strategic alliance with EY to enhance generative AI (GenAI) compliance, governance and risk management solutions is a significant development in the enterprise software industry. The integration of GenAI capabilities into ServiceNow's platform could potentially streamline operations and reduce costs for EY, which in turn could be a compelling value proposition for ServiceNow's existing and prospective clients.

From a market perspective, this collaboration could cement ServiceNow's position as a leader in digital workflows and AI solutions, potentially affecting its market share and competitive edge. The focus on governance and compliance solutions is timely, as regulatory scrutiny on AI technologies intensifies globally. Companies proactively seeking to manage AI risks could gain investor confidence, positively impacting stock performance in the medium to long term.

Financial Analyst

For investors, the key takeaway from the EY and ServiceNow partnership is the potential for increased revenue streams for ServiceNow and cost efficiencies for EY. By providing AI governance and compliance solutions, ServiceNow taps into a growing demand for AI risk management. This demand is driven by the increasing adoption of AI technologies across industries and the consequent need for robust compliance frameworks.

The anticipated offerings, set to be available in Q1 2024, could lead to an uptick in ServiceNow's sales as businesses seek to mitigate AI-related risks. It is important to monitor the adoption rate of these new offerings post-launch, as it will be a critical indicator of the alliance's success and its impact on ServiceNow's financial health.

Legal Expert

The strategic expansion highlights a proactive approach to the legal and ethical challenges posed by AI. The EY AI Governance and Compliance solution addresses a critical market need for transparent and accountable AI operations. As regulations around AI are still emerging, organizations that implement comprehensive AI governance frameworks can avoid potential legal pitfalls and stay ahead of legislative developments.

This collaboration could set industry standards for AI compliance, influencing how companies across various sectors approach AI governance. The legal implications of AI mismanagement are significant and EY's expertise combined with ServiceNow's technological capabilities could lead to a new benchmark in AI regulatory compliance.

The new offering will address critical business needs and offer solutions to help improve GenAI governance within organizations

EY to use ServiceNow’s Now Assist generative AI capabilities to enhance experiences for EY people and clients

NEW YORK & SANTA CLARA, Calif.--(BUSINESS WIRE)-- The EY organization and ServiceNow (NYSE: NOW), the leading digital workflow organizations making the world work better for everyone, have announced an expansion of their strategic alliance to provide solutions for generative AI (GenAI) compliance, governance and risk management. The EY organization will also use ServiceNow’s Now Assist GenAI capabilities to bring enhanced experiences to EY professionals and clients. These new AI solutions seek to amplify EY capabilities on ServiceNow’s risk management solutions.

“One topic dominates the C-suite agenda in 2024 - the transformative potential offered by AI,” said Carmine Di Sibio, EY Global Chairman and CEO. “The challenge many clients face is putting appropriate governance in place when adopting the technology. Together, the EY organization and ServiceNow will help organizations confidently turn AI risk management and regulatory compliance concerns into opportunities to drive business value. We are excited to broaden our collaboration with ServiceNow and continue growing our alliance relationship by collaborating on this game changing technology.”

“GenAI has inspired the imagination,” said ServiceNow Chairman and CEO Bill McDermott. “EY is shoulder-to-shoulder with ServiceNow to take costs out, put productivity in, and accelerate growth for our customers. Our partnership will enable the adoption of Gen AI on the ServiceNow platform at unprecedented speed.”

The newly developed offerings are expected to improve the management and governance of AI, driving proper compliance with regulatory requirements, and promote ethical, transparent, and accountable business practices. This includes the EY AI Governance and Compliance solution, providing businesses with a suite of essential capabilities including AI discovery and inventory management, policy management and implementation, risk tiering, and automated monitoring. The new offerings are expected to be available in the first quarter of 2024.

The EY organization will also use ServiceNow generative AI capabilities across IT and HR business functions. This includes deployments of IT Service Management (ITSM) PRO+, HR Service Delivery (HRSD) PRO+, and Now Assist GenAI tools, helping enable enhanced employee experiences across more than 400,000 EY professionals.

ServiceNow and the EY organization have a longstanding collaboration history providing offerings in areas such as risk, global business services, supply chain and manufacturing management, and technology innovation. The expanded alliance builds on ServiceNow and the EY organization’s announcement in December 2021 to transform finance and tax service. EY and ServiceNow teams also plan to increase focus on additional offerings into 2024 for specific industries including financial services, manufacturing, and life sciences.

To learn more about ServiceNow’s alliance with EY, visit here.

About EY

EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

About ServiceNow

ServiceNow (NYSE: NOW) makes the world work better for everyone. Our cloud-based platform and solutions help digitize and unify organizations so that they can find smarter, faster, better ways to make work flow. So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNow™. For more information, visit: www.servicenow.com.

© 2023 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated.

This press release contains “forward‑looking statements” about the expectations, beliefs, plans, and intentions relating to ServiceNow’s strategic alliance with EY to enable generative AI adoption. Such statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward‑looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward‑looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, ServiceNow’s results could differ materially from the results expressed or implied by the forward‑looking statements made. ServiceNow undertakes no obligation, and does not intend, to update the forward‑looking statements. Factors that may cause actual results to differ materially from those in any forward‑looking statements include: (i) delays and unexpected difficulties and expenses in executing the strategic alliance and (ii) changes in the regulatory landscape related to AI. Further information on factors that could affect ServiceNow’s financial and other results is included in the filings ServiceNow makes with the Securities and Exchange Commission from time to time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124228735/en/

Media Relations

Lindsay Capurro

503-551-2655

press@servicenow.com

EY Media Relations

Barbara Dimajo

barbara.dimajo@ey.com

Source: ServiceNow, Inc.

FAQ

What is the strategic alliance between EY and ServiceNow about?

The strategic alliance between EY and ServiceNow aims to provide solutions for generative AI compliance, governance, and risk management.

What are the new offerings expected to improve?

The new offerings are expected to improve the management and governance of AI, driving proper compliance with regulatory requirements and promoting ethical, transparent, and accountable business practices.

What are the key capabilities of the EY AI Governance and Compliance solution?

The EY AI Governance and Compliance solution provides businesses with a suite of essential capabilities including AI discovery and inventory management, policy management and implementation, risk tiering, and automated monitoring.

When are the new offerings expected to be available?

The new offerings are expected to be available in the first quarter of 2024.

How will the EY organization use ServiceNow generative AI capabilities?

The EY organization will use ServiceNow generative AI capabilities across IT and HR business functions, including deployments of IT Service Management (ITSM) PRO+, HR Service Delivery (HRSD) PRO+, and Now Assist GenAI tools to enable enhanced employee experiences.