Bill McDermott, CEO of ServiceNow, highlighted the transformative potential of generative AI in enterprise software during an exclusive interview with CNBC at the Knowledge 2024 conference in Las Vegas. McDermott spoke about ServiceNow’s partnerships with tech giants Microsoft, NVIDIA, and IBM, emphasizing how AI integration revolutionizes productivity and redefines business processes.

Partnership with Microsoft

McDermott emphasized that the partnership with Microsoft represents a strategic alignment of two enterprise software giants committed to revolutionizing productivity and enhancing user experiences. He highlighted how Microsoft’s Copilot and ServiceNow’s Assist tools seamlessly integrate to deliver unparalleled value to enterprise customers.

“Microsoft Copilot is really a standard in the enterprise. They’ve done such a great job with Copilot and really lifting up companies to a new level of productivity,” McDermott said. “To have them partner with Assist is truly significant. Think about a person in an enterprise today who has an integration between Copilot and now Assist.”

The collaboration enables a seamless workflow where tasks can be managed across both platforms without users knowing which tool they are using at any moment. For instance, employees who want to order a new laptop through Microsoft Copilot can do so while leveraging ServiceNow’s Assist to streamline the process.

“You can ask Copilot, ‘Where’s my laptop?’ and Copilot checks with Assist, which is seamlessly integrated into ServiceNow’s platform,” McDermott explained. “It then provides you with real-time information on the status of your order.”

This seamless integration between Microsoft and ServiceNow ensures employees can access the resources quickly and efficiently, eliminating traditional barriers between different software environments. The result is a unified, cohesive workflow that drastically improves productivity.

Furthermore, McDermott pointed out that this partnership offers customers a comprehensive view of their IT infrastructure. “We have all the IT data and information on the employee within ServiceNow, making it easier to manage assets, streamline workflows, and resolve IT issues,” he said. “With Microsoft Copilot and ServiceNow Assist working together, we are redefining enterprise productivity.”

McDermott believes combining Copilot’s intuitive user interface and ServiceNow’s powerful workflow automation will set a new benchmark in enterprise productivity software. “This is not just a strategic partnership; it’s a transformative collaboration that will redefine how businesses operate in the AI era,” he concluded.

The Microsoft partnership is just one example of how ServiceNow is leveraging its relationships with leading tech companies to offer innovative, AI-driven solutions that can transform business operations. By providing deep integrations and seamless user experiences, ServiceNow and Microsoft aim to empower enterprises to navigate the complexities of the digital age with greater ease and efficiency.

Addressing AI Hype and Differentiating ServiceNow

Bill McDermott acknowledged that while artificial intelligence has garnered immense attention in recent years, not all companies live up to the hype. With an increasing number of enterprise software providers pitching AI products, distinguishing real innovation from empty promises is becoming more challenging for customers.

“We have 250 tools from different companies right now pitching some form of AI product,” McDermott said. “But we have actually created a new product, which is a control tower, to study productivity not only with what our system is doing but also what all the other tools are doing. What we’re finding is that some of them are pretenders, and we are not.”

McDermott attributed ServiceNow’s authenticity in AI to its long-standing investment and first-mover advantage in developing AI-powered solutions. “We’ve been working on this for well over five years, building models with industry leaders like Jensen Huang at NVIDIA,” he explained. “We have first-mover advantage. The enterprise is going to be completely rethought with generative AI.”

He emphasized that the hype surrounding AI is justified, given the transformational shift it represents for businesses. “This is not a moment to think incrementally,” McDermott stated. “This is an exponential shift in the enterprise, and we intend to redefine it.”

McDermott believes that generative AI will fundamentally transform how organizations operate, unlocking unprecedented levels of productivity and innovation. He stressed that ServiceNow’s AI platform, built on years of development and strategic partnerships, is uniquely positioned to lead this transformation.

“From every corner of the office, we’re putting AI to work for people,” he said. “We’re going to every corner of how innovators build new software. This is the AI platform for business transformation.”

ServiceNow’s approach focuses on delivering practical, real-world AI applications that directly address enterprise needs. The company aims to help organizations seamlessly improve productivity, reduce costs, and enhance employee experiences by integrating generative AI with its core workflows and platforms.

McDermott noted that enterprises increasingly recognize the real-world potential of ServiceNow’s AI-driven offerings. “We’re seeing a $7 trillion industrial complex in the data center and cloud computing,” he remarked. “ServiceNow is poised to reshape how organizations think about business transformation, and we’re leading that charge.”

In this crowded and rapidly evolving landscape, ServiceNow offers a comprehensive, AI-enabled platform that enables businesses to streamline their operations, manage complex workflows, and achieve new productivity levels. By combining strategic partnerships, like the one with Microsoft, and focusing on practical AI applications, McDermott is confident that ServiceNow will remain at the forefront of the enterprise AI revolution.

Integration with NVIDIA and IBM

The partnerships ServiceNow has forged with industry giants like NVIDIA and IBM are central to its strategy for harnessing the potential of generative AI. Bill McDermott emphasized the importance of these collaborations in accelerating the development and deployment of cutting-edge AI solutions.

“Working with Jensen Huang and the NVIDIA team has been instrumental in our AI journey,” McDermott said. “Their leadership in GPUs and AI computing has empowered us to build innovative models that will redefine enterprise software. Together, we’re integrating NVIDIA’s powerful AI frameworks into ServiceNow to deliver unprecedented levels of intelligence and automation.”

ServiceNow’s integration with NVIDIA centers on leveraging GPUs and software frameworks to optimize AI workflows. By incorporating NVIDIA’s generative AI models and GPU-accelerated computing, ServiceNow is creating tailored solutions that can handle the complex demands of modern enterprises. This integration will allow ServiceNow to accelerate the performance of its predictive models, enabling businesses to obtain faster insights and drive efficiency across their operations.

“The collaboration with NVIDIA will help us scale our AI models and deliver new capabilities for IT operations, customer service, and employee workflows,” McDermott stated. “We’re creating a new generation of AI tools that will empower organizations to work smarter and deliver better experiences.”

In addition to NVIDIA, ServiceNow works closely with IBM to bolster its AI offerings. Integrating with IBM’s Watson AI technology enhances ServiceNow’s ability to provide tailored solutions for large enterprises. By incorporating Watson’s natural language processing and machine learning capabilities, ServiceNow aims to create intuitive user interfaces and deliver automated insights that simplify customers’ decision-making.

“IBM has been a fantastic partner,” McDermott said. “Their expertise in natural language understanding and deep learning has enriched our platform’s AI capabilities, enabling us to offer personalized and context-aware solutions.”

The collaboration with IBM focuses on bringing AI-driven insights to ServiceNow’s core offerings, including IT service management and customer support. Businesses can automate routine tasks and enhance employee productivity by embedding Watson AI directly into ServiceNow workflows. For example, Watson’s understanding of unstructured data allows ServiceNow to offer more accurate virtual agents and knowledge management systems.

“Combining IBM’s Watson with ServiceNow’s enterprise-grade platform creates a powerful AI solution that can handle the complexities of global organizations,” McDermott emphasized. “We’re helping our customers solve problems faster, improve productivity, and ultimately, redefine the way they work.”

The partnerships with NVIDIA and IBM exemplify ServiceNow’s commitment to integrating best-in-class AI technologies into its platform. By collaborating with these industry leaders, ServiceNow is poised to accelerate the adoption of generative AI in enterprises worldwide.

“As the AI revolution gains momentum, it’s crucial for companies like ServiceNow to work with trusted partners who share our vision,” McDermott concluded. “We’re not just adopting AI—we’re transforming how businesses think about enterprise software.”

AI is an Exponential Shift in the Enterprise

ServiceNow stands at the forefront as the AI landscape evolves, driven by strategic partnerships, visionary leadership, and a commitment to innovation. Bill McDermott’s vision for the company transcends incremental improvements, aiming instead for a fundamental shift in how enterprises leverage technology to drive productivity and transformation.

“AI is not a moment to think incrementally; this is an exponential shift in the enterprise,” McDermott reiterated. “We’re not just responding to market trends; we’re redefining what enterprise software can achieve.”

Through strategic collaborations with Microsoft, NVIDIA, and IBM, ServiceNow is building a robust AI ecosystem that integrates seamlessly into its platform, delivering unparalleled value to customers. The partnership with Microsoft enhances ServiceNow’s reach and user experience, while the integration with NVIDIA and IBM ensures the company remains at the cutting edge of AI technology. These alliances enable ServiceNow to offer a comprehensive suite of AI-driven tools that empower businesses to transform workflows and improve customer experiences.

ServiceNow’s unique approach to AI is not just about offering the latest technology; it’s about understanding and addressing enterprises’ real challenges. By creating integrations like Microsoft Copilot and Now Assist, the company is building AI tools that simplify complex processes, streamline decision-making, and drive meaningful business outcomes.

“We’re putting AI to work for people,” McDermott emphasized. “Whether helping an employee find a laptop or enabling IT teams to automate workflows, our goal is to make AI an integral part of every enterprise’s digital transformation journey.”

While the hype surrounding AI may lead to inflated expectations, ServiceNow is grounded in a practical approach that prioritizes delivering tangible results for its customers. By offering a control tower that measures productivity across different AI tools, the company ensures its customers receive genuine value from their investments.

Integrating NVIDIA’s GPUs and IBM’s Watson AI technology further solidifies ServiceNow’s position as a leader in enterprise AI. With these partnerships, the company can offer its clients advanced natural language processing, deep learning, and predictive analytics, ensuring that AI becomes a seamless extension of their existing workflows.

Looking ahead, ServiceNow is poised to redefine the enterprise software landscape. By focusing on delivering exponential value through its AI ecosystem, the company is setting the stage for a new era of business transformation.

“We’re just getting started,” McDermott concluded. “The AI revolution is here, and ServiceNow is leading the charge. Together with our partners and customers, we’re building the platform that will define the future of work.”

As businesses worldwide navigate the challenges and opportunities of AI, ServiceNow’s comprehensive approach to enterprise transformation promises to be a guiding beacon, illuminating the path forward for organizations seeking to harness the full potential of AI-driven innovation.