ServiceNow has entered a collaboration agreement with Aramco Digital to enhance AI-powered enterprise transformation across Aramco’s ecosystem, which includes affiliates in over 50 countries. The agreement, announced on October 10, 2023, is expected to standardize and govern digital workflows, potentially increasing ServiceNow’s presence in AI automation and workflow management.
Key figures revealed that ServiceNow’s AI annual contract value exceeded $1 billion in Q2 2023, with a 40% quarter-over-quarter increase in net new AI contracts. Subscription revenues surged 24.5% year-over-year to $3.88 billion. The collaboration could facilitate cross-selling opportunities within Aramco, with the possibility of expanding ServiceNow’s suite of products across various business functions.
This partnership comes amid rising competition from Salesforce and Microsoft. Salesforce’s Agentforce reported $1.5 billion in annual recurring revenues, while Microsoft registered nearly 40 million agents with their Agent 365. Despite ServiceNow’s challenges, the collaboration with Aramco marks a strategic move in capturing a larger share of the enterprise AI market.
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