ServiceNow is the 'control tower for AI transformation', says CEO Bill McDermott

of service now hitting a 52- we high today that stock is up 25% so far this quarter as demand for AI software continues to ramp and joining me now for cloud week is Bill McDermot CEO of service now Bill some more superlative here the stock is up almost 60% year-to date market cap now bigger than Disney just shy of adobe closing in on sap where you used to be CEO um so as we look ahead to 2025 you've got agentic AI on the menu as well how much more transformation is there left in the tank

oh John we're just getting started if you look at the AI platform for business transformation service now has formed itself as the control tower for AI transformation across all other Platforms in the Enterprise and what's really happening John is work is not happening in a single Department work goes across every function in an Enterprise so it's our ability to manage the endtoend task and request management process and this includes all people all processes all data and all systems and we're the only enterprise software company in the world that has the endtoend solutions to excel at

business transformation management because we have one platform with one architecture and one data model and that makes AI Rocket Fast Totally Secure and cheap to run and that's what people love about service now something that I'm I'm noticing here Cloud week uh after been to Microsoft ignite we saw Salesforce earnings this week as well there are a lot of people talking about working across the hyperscalers across clouds but then you're starting to see some sniping particularly uh Mark Benny off at Microsoft and office and I wonder what does that say about this stage that we're

in right now in Cloud as we look ahead to AI really ramping productivity well when I think about our position you know service now is really the Workhorse that's putting AI to work for people no matter what system we connect to we give you a bright future because service Now is working for you but this is what I think should be very interesting to your viewers most AI agents today are stuck in their own siloed system which John those siloed systems have multiple instances in almost every large company so by adding AI agents to siloed

systems with multiple instances that weren't well integrated to begin with You're simply adding to The Hornet's Nest of complexity so our position is Rock Solid our service now ai agents talk to each other they talk across different systems and they manage multiple different workflows in an organization and we string this all together with an orchestrator that automates the entire organization not just one cloud or a single function and since you mentioned Microsoft we've always expanded our partnership with Microsoft we're modernizing the front office now with Microsoft by connecting co-pilot and our AI agents with Microsoft's

AI agents and now together two Market leading companies are telling customers we're in full cooperation mode and I think that'll be very helpful for our customers and not such good news for the competition you mentioned the competition and a hornets nest of complexity when do customers start getting stung when do customers start getting what John when do the when do the customers start getting stung by that hornets nest and we start to to see some impact from that John it's a great question and and the reality is customers are in the early days now of

investing in Ai and the feedback that I already have and that I got yesterday from a very large Bank in Brazil to optimize for single function for tasks in a disconnected uncoordinated manner while you might help a person do a task more efficiently you have to have a request and you have to have a closed loop action and process that gets inp text and recorded on an endtoend basis only service now does this in the Enterprise so I think the customers once they hear our message and they understand that we connect the data fabric which

is think about this unifying data from hundreds of systems to the app layer where you have all these disparate disconnected unintegrated apps we put it all together and our agents work with everyone else's agents so if you want to invest in agents in asyo go for it uh we'll make it work better anyway but I do think people are getting smart and they're putting their money on service now because we deliver we deliver fast and the ROI is exceptional