Stay Ahead: 9 Key AI News Updates You Need to See

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 78

ServiceNow, Inc. (NYSE:NOW) is a technology company that provides end-to-end intelligent workflow automation platform solutions for digital businesses. It is one of the companies that have been baking generative artificial intelligence features into its products. Likewise, on January 30th, Rob Oliver of research firm Baird reiterated a Buy rating on the stock with a $1200 price target.

The buy rating came on the heels of ServiceNow, Inc. (NYSE:NOW), which issued a fiscal year sales outlook that fell short of expectations. The software application company expects subscription revenue of about $12.7 billion against the $12.9 billion analysts predicted. In defense of the lower-than-expected sales outlook, ServiceNow insists it is focused on adopting more generative artificial intelligence products rather than generating significant revenue from the tools in the short term.

According to ServiceNow, Inc. (NYSE:NOW), its generative AI tools will have more pay-as-you-go pricing starting in 2025. According to the company, this change will result in the foregoing of incremental new subscriptions up front in favor of accelerating adoption and gradually monetizing growing usage.