ServiceNow AI to hit $3 billion by 2029, prediction says

ServiceNow's AI disclosure came alongside otherwise strong quarterly results. The company's subscription revenue reached about $3.9 billion in the second quarter, up 24.5% from a year earlier, and it signed 123 deals worth more than $1 million in net new ACV, up nearly 40% year over year. Management also raised its full-year subscription revenue guidance to between $15.76 billion and $15.78 billion, the second raise this year.

The AI line itself has grown quickly from a small base. Net new ACV for Now Assist, ServiceNow's generative AI product line, more than doubled year over year in the fourth quarter of 2025. Customers spending more than $1 million annually on Now Assist grew over 130% in the first quarter of this year. And Bill McDermott said agentic deployments of ServiceNow AI increased ninefold in just nine months.

The prediction's outcome hinges on whether those deployments convert into signed contract value, since the ninefold figure measures deployments, not dollars. The author notes that a softer spending environment or pricing pressure from other software companies selling AI agents could slow growth, and that if net new AI contract value growth slows toward the pace of the broader business for a couple of quarters, the target would be walked back.