ServiceNow Releases Its Most Comprehensive Set of New AI Innovations With the Now Platform Xanadu Release

Rhea-AI Summary

ServiceNow (NYSE: NOW) has released its Now Platform Xanadu update, introducing hundreds of new AI capabilities to enhance customer agility, productivity, and employee experiences. Key features include:

1. Expansion of Now Assist GenAI to Security Operations and Sourcing & Procurement Operations

2. Now Assist integration with Microsoft Copilot for Microsoft 365

3. Now Assist Skill Kit for custom GenAI skills development

4. New AI innovations like data visualization generation, chat and email reply generation, and change summarization

5. LLM-based proactive prompts for HR Service Delivery

The release aims to streamline operations, maximize productivity, and deliver world-class experiences to customers. ServiceNow reported that Now Assist doubled its net-new annual contract value quarter-over-quarter in Q2 2024.

Positive

• Now Assist doubled its net-new annual contract value quarter-over-quarter in Q2 2024
• Expansion of Now Assist GenAI to new mission-critical enterprise functions
• Introduction of Now Assist Skill Kit for custom GenAI skills development
• Integration with Microsoft Copilot for Microsoft 365 now generally available
• New AI innovations to enhance productivity and improve employee experiences

Negative

• None.

Insights

Technology Analyst

ServiceNow's Xanadu release marks a significant leap in AI integration for enterprise software. The expansion of Now Assist to Security Operations and Sourcing & Procurement addresses critical business needs. This move could potentially streamline operations and boost efficiency across various departments.

The introduction of Now Assist Skill Kit is particularly noteworthy. It allows for custom GenAI skill development, which could be a game-changer for businesses seeking tailored AI solutions. This flexibility could give ServiceNow a competitive edge in the rapidly evolving AI market.

However, the true test will be in the real-world application and adoption of these features. While the potential is significant, the actual impact on productivity and ROI remains to be seen. Investors should monitor customer feedback and adoption rates in the coming quarters.

Financial Analyst

ServiceNow's aggressive push into AI with the Xanadu release could significantly impact its financial performance. The company reported that Now Assist doubled its net-new annual contract value quarter-over-quarter, indicating strong market demand. This rapid growth trajectory, if sustained, could boost ServiceNow's revenue and market share in the AI-driven enterprise software segment.

Gartner's projection of $3 trillion spent on AI between 2023 and 2027 suggests a massive market opportunity. ServiceNow's early mover advantage and comprehensive AI offerings position it well to capture a substantial portion of this spending.

Investors should closely watch for increased adoption rates and their impact on ServiceNow's future financial results. The company's ability to monetize these AI innovations will be important for long-term growth and profitability.

AI Ethics Specialist

ServiceNow's commitment to secure, responsible and ethical AI is commendable in the rapidly evolving AI landscape. The implementation of internal processes and guardrails, including data encryption, secure communication channels and ongoing vulnerability scanning, demonstrates a proactive approach to AI safety.

The company's participation in the AI Alliance and partnerships with organizations like NVIDIA and IBM for open and responsible AI development are positive steps. These initiatives could help mitigate potential risks associated with AI deployment and enhance trust among customers and stakeholders.

However, as AI capabilities expand, ServiceNow must remain vigilant in addressing emerging ethical concerns and potential biases in AI systems. Continuous monitoring and transparent reporting on AI ethics will be important for maintaining customer trust and avoiding regulatory pitfalls.

Hundreds of additional, new AI capabilities boost customer agility, enhance productivity, and improve employee experiences

ServiceNow Now Assist GenAI portfolio expands to new mission-critical Security Operations and Sourcing & Procurement Operations functions

Now Assist integration with Microsoft Copilot for Microsoft 365 meets employees where they work and collaborate by offering a holistic, connected experience

SANTA CLARA, Calif.--(BUSINESS WIRE)-- ServiceNow (NYSE: NOW), the AI platform for business transformation, today released its most comprehensive set of new AI innovations with the Now Platform Xanadu release. The Xanadu release features hundreds of additional, new AI capabilities to boost customer agility, enhance productivity, and improve employee experiences. It also expands the generative AI (GenAI) portfolio to new mission-critical enterprise functions including Security Operations and Sourcing & Procurement Operations. In addition, the previously announced Now Assist integration with Microsoft Copilot for Microsoft 365 is now generally available, meeting employees where they work and collaborate by offering a holistic, connected experience.

(Graphic: Business Wire)

According to Gartner^®, $3 trillion will be spent on AI between 2023 and 2027, and by 2027, GenAI will represent 36% of total AI Spending.¹ As CEOs look for new vectors of growth, simplification, and digitization, ServiceNow is already delivering differentiated GenAI capabilities that will help streamline operations, maximize productivity, and deliver world-class experiences to customers such as American Honda Motor Company, Bayer, Boomi, Eaton, and Olam Global Agri. In the company’s second quarter 2024 financial results, Now Assist continued its run as ServiceNow’s fastest growing new product set in company history, doubling net-new annual contract value (NNACV) quarter-over-quarter.

“Our customers are hungry to put AI to work now and they want more from their GenAI deployments—more productivity, more personalization, more value,” said Jon Sigler, senior vice president, Platform and AI at ServiceNow. “That’s why we are laser-focused on delivering a complete, end-to-end platform experience for our customers. The Xanadu release marks a significant step forward for our GenAI roadmap, empowering enterprises to quickly harness the potential of GenAI and drive unprecedented business outcomes without hassle.”

Expanding Now Assist to new mission-critical enterprise functions

With the Xanadu release, ServiceNow is significantly expanding the breadth and depth of its GenAI offerings, bringing the power of Now Assist to more areas of the enterprise with innovations that multiply impact. This includes addressing critical enterprise needs like security and threat management, where expediency can be the difference in safeguarding IT environments. New Now Assist for Security Operations (SecOps) is tailor-made to help enterprises accelerate security incident response (SIR) workflows and proactively manage threat exposure in real time.

• Now Assist for SecOps helps boost response times to more quickly contain security threats. With Now Assist, SecOps teams can transfer interactions with AI driven incident summarizations and interactive Q&A to automatically prioritize and respond to each security event. As a result, they can better scale incident response protocols, accelerating the assessment, prioritization, and response process for critical security threats.

ServiceNow is also bringing Now Assist to its Finance and Supply Chain Workflows, available first for Sourcing and Procurement Operations, with more GenAI capabilities to follow. According to Gartner^®, “GenAI can already enhance many different workflows in procurement and 73% of procurement leaders at the start of the year expected to adopt the technology by the end 2024.”² Similarly, ServiceNow sees immense opportunity for intelligent automation to unify complicated and fragmented processes. Built to simplify these processes, customers can use Now Assist to help expedite procurement requests, improve compliance, gain better control of enterprise spend, and drive tangible business value.

• Now Assist for Sourcing and Procurement Operations makes the procurement intake process simple and seamless for submitting requests, which can result in greater compliance and accuracy while minimizing friction with fulfillment. Employees can initiate a procurement request or access information through a conversational prompt with Now Assist, removing the need to navigate complex systems. It also lessens the burden on procurement and finance teams by reducing the time it takes to receive, review, and complete tasks, freeing up more of their day to focus on higher-value work.

Boosting customer agility, enhancing productivity, and improving employee experiences

ServiceNow continues to put customer agility at the forefront with Now Assist Skill Kit, a new feature that unlocks the development and deployment of custom GenAI skills and prompts. Additionally, data visualization generation, chat and email reply generation, change summarization, and LLM-based proactive prompts are among the hundreds of new AI innovations in the Xanadu release. These updates help improve IT productivity, break down complexities, and enable easier internal collaboration, helping employees work better and faster.

• Now Assist Skill Kit offers a pro-code experience for partners and customers to create custom GenAI skills for their specific business needs, as well as when they have a use case that isn’t available yet out-of-the box with Now Assist. With Now Assist Skill Kit, developers have an easy way to build, test, and deploy new GenAI skills and their underlying prompts for an array of AI use cases, including for developers building skills on ServiceNow. It connects seamlessly to data and knowledge within the Now Platform for enhanced context and accuracy and offers powerful options for customization—whether customers want to choose Now LLMs or want to incorporate third-party or custom LLMs.

• Data visualization generation, the first analytics generation skill in Now Assist, helps teams more effectively visualize data and make informed decisions quickly to reduce bottlenecks and speed up response times. Data visualization generation gives users the ability to get targeted insights from their data using natural language prompts and add them to interactive dashboards. Users can get fast insights without needing to know anything about the underlying structure of their data.

• Chat and email reply generation reduces the time spent on manual replies with AI-generated suggested responses and revisions. Available within Agent Workplace, users can harness Now Assist to help resolve issues even faster. The quick reply feature uses GenAI to draft or edit emails for service agents, generating context-aware details to cut down response times and help ensure more effective communication, which is especially useful when agents are managing mission-critical incidents.

• Change summarization, powered by Now Assist for IT Service Management (ITSM), allows IT teams to summarize change requests and assess related data quickly. This enables IT teams to make more informed decisions about the impacts of a change, improving agent productivity and decreasing cycle times while minimizing risks.

• LLM-based proactive prompts, powered by Now Assist for HR Service Delivery (HRSD), proactively engage employees and managers with relevant and timely reminders to complete tasks like approving a travel request, finishing mandatory training, or submitting career goals. Now Assist for HRSD is designed to provide a more streamlined work experience for employees, managers, and HR teams. LLM-based proactive prompts further that mission, helping managers and employees take necessary actions, all through conversational, GenAI-enabled prompts in Virtual Agent.

Extending the possibilities of Now Assist through partnerships

During Knowledge 2024, ServiceNow previewed an expanded partnership with Microsoft to integrate the intelligence of ServiceNow’s AI powered workflows with Copilot for Microsoft 365. With the Xanadu release, ServiceNow is officially bringing that functionality to customers, enabling new levels of employee productivity and connected experiences.

• The Copilot for Microsoft 365 integration is now generally available, bringing the power of Now Assist and Copilot for Microsoft 365 into a unified, seamless experience for employees. Copilot can hand off automated self-service employee tasks—such as ordering a new laptop or asking about company policies—to Now Assist in Microsoft Teams. Now Assist can then arm employees with real-time responses and kick off workflows on their behalf.

Accelerating AI and data platform innovation for the GenAI era

The Xanadu release cements ServiceNow’s GenAI leadership with one of the most ambitious roadmaps in enterprise software today. With GenAI embedded directly into the Now Platform, customers get out-of-the-box intelligence with ServiceNow’s multimodal model—Now AI—built and optimized to deliver actionable AI to every corner of the enterprise. Earlier this year, ServiceNow also launched Bring-Your-Own GenAI model, which allows customers to tailor their AI‑driven transformation to their unique needs. This open approach gives customers the choice and flexibility to use Now AI, their own LLMs, or general purpose LLMs as they create more intuitive, efficient, and seamless experiences on the ServiceNow platform.

In addition to extending the depth of its GenAI capabilities with the Xanadu release, ServiceNow announced new data enhancements to the Now Platform, unlocking value for customers with ultra-scale and performance. New capabilities including the premium RaptorDB high-performance database will deliver improvements in data processing, enabling customers to better execute mission-critical workflows across industries.

ServiceNow continues its strong commitment to secure, responsible, and ethical AI—furthering AI innovation that augments human capabilities and contributes positively to the world. Internal processes and guardrails within the Now Platform bolster security and reliability. This includes data encryption to strengthen data confidentiality, secure communication channels, pre-processing analysis, ongoing vulnerability scanning, accuracy-checking, post-processing and response filtering, safety detection, and policy compliance. ServiceNow also partners with organizations like NVIDIA, Hugging Face, IBM, and others to foster an open, transparent, and responsible AI ecosystem. For example, it is a founding member of the AI Alliance, a group comprising academia, research, science, and industry that is committed to advancing open and responsible AI. ServiceNow has also integrated with NVIDIA NIM to optimize the quality and performance of its Now Assist generative AI services for faster and more accurate responses, increasing the productivity for employees, customers, and developers.

What our customers and partners are saying:

Eaton

"Technology is fundamental to our success in helping deliver value for our customers so they can tackle some of the most critical power management initiatives across the world,” said Sunil Tulyani, service management platform leader at Eaton. “For the last century, Eaton has been dedicated to helping our customers manage power more reliably, efficiently, safely, and sustainably. In the new era of AI, our ability to drive efficiencies and solve challenges with technology has never been greater. We look forward to leveraging the power of GenAI, with the help of ServiceNow Now Assist, to increase productivity across our entire organization and to make it easier for teams to get the answers they need when they need them."

Boomi

“Our core mission at Boomi is to simplify the complexity of connecting applications and business processes for our customers,” said Arlen Shenkman, president at Boomi. “Layering GenAI across our customer experiences is the next step in reducing complexity even further, speeding up time to resolution and delivering a fantastic service experience. With the Now Platform and ServiceNow’s AI‑powered TPSM offering, we’re working to transform customer support and expand self‑service. Now Assist for CSM will further help us ensure that our customers receive a simplified, efficient customer experience.”

Olam Global Agri

"Olam’s goal is to adopt AI to bring new value to our organization,” said Shivram Ramakrishnan, CDIO & senior vice president at Olam Global Agri. “With ServiceNow’s GenAI solutions, we’ve developed a cash flow model to predict when a customer will pay us so we can better manage our cash position. We’re using GenAI in our procurement process to understand the various quotes provided by our suppliers, and to be able to generate scripts for our buyers in their negotiations. We’re excited for the Now Assist for F&SCW solution as part of the Xanadu release, a GenAI solution built specifically for finance and procurement teams, which will help unlock new efficiency for employees and create a more resilient supply chain."

Availability

• All GenAI features announced today are generally available and can be found in the ServiceNow Store.

Additional Information

• Read about additional news from ServiceNow today:
  • ServiceNow announced its vision to integrate Agentic AI into the ServiceNow platform to power 24/7 productivity at massive scale with AI agents.
  • ServiceNow unveiled new data enhancement capabilities to unlock value with ultra-scale and performance.
  • ServiceNow expanded its industry footprint with purpose-built AI solutions for telecommunications, media, and technology; financial services; public sector; and retail companies.
  • ServiceNow released additional capabilities designed to boost collaboration and efficiency for developers, IT teams, and employees.

1	Gartner, IT Spending Forecast, 3Q23 Update: The Impact of GenAI, By John Lovelock, Chrissy Healey, Errol Rasit, Alys Woodward, 17 October 2023. https://webinar.gartner.com/540525/agenda/session/1223155?login=ML
2	Gartner Press Release, “Gartner Says Generative AI for Procurement Has Hit Peak of Inflated Expectations,” July 25, 2024. https://www.gartner.com/en/newsroom/press-releases/2024-07-25-gartner-says-generative-ai-for-procurement-has-hit-peak-of-inflated-expectations
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

About ServiceNow

ServiceNow (NYSE: NOW) is putting AI to work for people. We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes. For more information, visit: www.servicenow.com.

Forward Looking Statements

This press release contains “forward looking statements” about the expectations, beliefs, plans, and intentions relating to its innovations announced with the Now Platform Xanadu release. 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 product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether sales will justify the investments in the product capabilities and offerings. 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.

© 2024 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910730948/en/

Media Contact

Jacqueline Velasco

408-561-1937

press@servicenow.com

Source: ServiceNow, Inc.

FAQ

What new AI capabilities does ServiceNow's Now Platform Xanadu release introduce?

The Xanadu release introduces hundreds of new AI capabilities, including Now Assist for Security Operations and Sourcing & Procurement Operations, Now Assist Skill Kit for custom GenAI skills, data visualization generation, chat and email reply generation, change summarization, and LLM-based proactive prompts for HR Service Delivery.

How has ServiceNow's Now Assist performed financially in Q2 2024?

ServiceNow reported that Now Assist doubled its net-new annual contract value quarter-over-quarter in Q2 2024, making it the company's fastest-growing new product set in its history.

What is the significance of ServiceNow's integration with Microsoft Copilot for Microsoft 365?

The integration, now generally available, brings the power of Now Assist and Copilot for Microsoft 365 into a unified experience for employees, enabling automated self-service tasks and improved productivity within Microsoft Teams.

How does ServiceNow's Now Assist for Security Operations benefit enterprises?

Now Assist for Security Operations helps enterprises accelerate security incident response workflows, proactively manage threat exposure in real-time, boost response times, and scale incident response protocols for critical security threats.

What is the purpose of ServiceNow's Now Assist Skill Kit introduced in the Xanadu release?

Now Assist Skill Kit offers a pro-code experience for partners and customers to create custom GenAI skills for their specific business needs, allowing developers to build, test, and deploy new GenAI skills and underlying prompts for various AI use cases.