ServiceNow: Pro Plus & AI Integration

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I think you mentioned there was a caveat you wanted to discuss.

Yes, just one more point on the buy versus build aspect. The use of ServiceNow as a low-code platform allows for comparison between how many customers are building their own apps using ServiceNow as a platform versus using ServiceNow's pre-built apps like ITSM or CSM. Initially, many people were building their own apps, but there's a shift away from that because custom apps don't comply with the common services data model that ServiceNow is promoting. This non-compliance makes it difficult for other apps to interact with custom apps. Consequently, people now prefer using the off-the-shelf app functionality rather than building their own, even within the ServiceNow platform. I foresee their creator workflows being used less in the future.

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What do you mean by the AI benefit is for the outsourced provider?

If you've outsourced your IT service desk to India with 200 agents in Bangalore, and I introduce AI agents or large language models in ServiceNow, achieving 15% efficiency and reducing to 170 agents, the benefit is for the outsourcer. This might not directly benefit the client unless they renegotiate the contract, as it would be a fixed-price contract signed for five years with the outsourcer.

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What do you mean by the AI benefit is for the outsourced provider?

With the upcoming renewals for outsourced contractors over the next few years, I believe we'll see more AI benefits integrated. Outsourcers will likely reduce their revenue to incorporate more AI, making them more cost-effective. Clients will start to see these benefits, although they might not be able to directly calculate the per-employee advantage from investing in AI.

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