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Why ServiceNow Is Unfazed by AI and 'Claudification'
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CNBC TV18•06-10-2026, 22:18
Why ServiceNow Is Unfazed by AI and 'Claudification'
- •ServiceNow President and COO Amit Zavery believes AI is driving higher demand for enterprise software rather than threatening it, noting that the company raised its AI annual contract value target from $1 billion to $1.5 billion.
- •Zavery argues that AI models provide raw intelligence and code generation, but lack the crucial enterprise context, execution engines, and workflow integration that ServiceNow has built over years.
- •Writing code accounts for only about 20 percent of enterprise software costs, while the remaining 80 percent involves maintenance, governance, security, compliance, and upgrades—areas where ServiceNow remains essential.
- •India serves as ServiceNow's fastest-growing market in Asia Pacific and its second-largest employee base outside the US, driving major AI innovations such as the AI Control Tower used by over 1,000 customers.
