Bank of America spots ServiceNow’s overlooked AI advantage

Bank of America reiterated its Buy standing and $130 terms people connected ServiceNow (NOW) aft the bundle institution reported stronger-than-expected second-quarter declaration growth. The people represents astir a 36% upside from the $95.46 stock terms listed successful BofA's July 23 report.

According to the report, ServiceNow's subscription gross roseate 24.5% to $3.88 billion, and existent remaining show obligations (contracted gross expected wrong the adjacent 12 months) accrued 21% to $13.2 billion. Both measures exceeded Wall Street expectations.

BofA highlighted a little evident constituent successful the report: ServiceNow's AI agents whitethorn payment from the workflow past and infrastructure records already stored connected its platform.

Analyst Tal Liani said ServiceNow tin gully connected that discourse erstwhile an cause encounters an endeavor occupation that does not person a simple, documented solution.

Because ServiceNow already stores those records, its agents could grip hard cases with less data-integration steps than an extracurricular AI product, according to the report.

BofA says endeavor discourse tin assistance ServiceNow grip harder cases

A basal service-desk cause tin reset a password, classify a enactment ticket, oregon o.k. bundle entree by pursuing a documented process.

An exertion outage presents a much analyzable task. Before taking action, an cause whitethorn request to place which servers enactment the application, reappraisal caller configuration changes, cheque which different services beryllium connected it, and corroborate who has authorization to o.k. a repair.

The merchandise statement is shifting from elemental L1 automation ... to broader agentic workflows.

ServiceNow tin supply that inheritance done customers' workflow histories, its Configuration Management Database (CMDB) and newer cognition tools.

The CMDB records applications, servers, services, and the relationships among them. ServiceNow's Context Engine adds accusation astir people, roles, institution policies, and anterior decisions. Those records tin assistance an cause find which systems could beryllium affected earlier it changes a configuration oregon restarts a service.

A lawsuit deploying a third-party AI instrumentality whitethorn request to extract records from respective systems, explicate however those records subordinate to 1 another, and instrumentality the agent's output to the bundle wherever employees implicit the work.

ServiceNow tin springiness an cause entree to existing workflows, strategy relationships, permissions, and support rules connected the aforesaid platform. BofA said the setup could trim deployment costs and complexity portion allowing the cause to implicit a larger information of the process.