Company Interview / What comes after the "AI hype" phase?

Key points:

AI shifts from add-on to embedded workflow engine across enterprises Generative AI adoption seen driving a roughly 20% margin delta between leaders and laggards Infrastructure and model layers expected to commoditise, with value in complex enterprise execution Investment focus suggested on platforms enabling AI at scale within large organisations

Pete Andrew from ServiceNow states that enterprise software is entering a new phase, with artificial intelligence moving from optional add-on to core workflow engine. Andrew argues that organisations are now beyond pilots, embedding generative AI directly into business processes to remove manual, repetitive work and lift margins. He notes broad uptake across sectors including telecommunications, public sector, resources and mining, with AI woven into every new ServiceNow software release.

Andrew points to an AI maturity gap, stating that enterprises deeply embedding generative AI into workflows are seeing margin improvements of around 20% versus slower adopters. In his view, the infrastructure and model layer of AI will increasingly commoditise, while differentiated value will sit in execution across complex, cross-system enterprises. That is where he positions platforms such as ServiceNow.

From an investment perspective, Andrew describes the current environment as the next phase of the AI cycle, with opportunity in companies that act as long-term AI platforms for major enterprises rather than pure model providers. Over the next five years, he expects AI-driven automation to strip out administrative workloads, enabling deeper employee and customer engagement and, in his view, stronger revenue and margin growth for those who execute well.