ServiceNow CEO Bill McDermott does not see artificial intelligence as a threat to business software, but rather as an opportunity to increase the value of enterprise platforms.
According to him, the future lies not in autonomous AI systems that render traditional software obsolete, but in close collaboration between AI models, hyperscalers, and integrated business solutions.
In an interview with CNBC, McDermott explained that ServiceNow has aligned its strategy with collaboration with the three largest hyperscalers. This integration makes it easier for customers to deploy AI models within existing processes without having to manage the technical complexity of connections, security, and compliance themselves. McDermott emphasized that while providers of large language models deliver powerful technology, they are not a substitute for platforms that bring together business logic, workflows, and governance.
While some analysts fear that generative AI will eventually render enterprise software obsolete, McDermott argues that the opposite is true. In his view, only integrated platforms can bridge the gap between generative models and the complex reality of business environments. Organizations with outdated IT systems or those in highly regulated sectors in particular need software that combines the reliability of systems of record with the power of AI.
AI agents operate too much in silos
McDermott also sees a structural problem with the current generation of AI applications. According to him, many AI agents are used in separate silos, which prevents them from effectively responding to processes that transcend departments. He advocates an approach in which AI acts as a connecting technology, integrated within the existing IT architecture.
In addition to his vision on AI, McDermott explained that ServiceNow is implementing a five-for-one stock split to give private investors easier access to the stock. The market responded positively to the strategy and the quarterly results: the share price rose by more than four percent in after-hours trading.
With this price, ServiceNow is positioning itself as a player that does not see AI as a disruptive competitor, but as a strategic driver of innovation within enterprise IT.