Why Stock-Split Stock Service Now Triumphed on Thursday
Key Points
The enterprise software speciast isn't being shy at all in its embrace of AI.
It rolled out not one, but two new products powered by the technology.
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Although some investors have become wary of companies leaning hard into artificial intelligence (AI), they're still bidding up the prices of some that have announced fresh AI initiatives.
That was much of the dynamic behind ServiceNow's (NYSE: NOW) rise on Thursday. After the enterprise software specialist formally introduced two new AI offerings, its shares cruised to end the day almost 5% higher in price.
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All about agentic AI
That morning, ServiceNow announced the launch of its Autonomous Workforce. In its words, the product is effectively a framework of numerous "AI specialists that can execute jobs with the scope, authority, and governance required for enterprise work -- freeing people to focus on strategic problem solving and personalized service."
Image source: Getty Images.
Also hitting the market is the company's EmployeeWorks, a workforce-assistance agent the company characterizes as a "conversational front door" for businesses. It harnesses technology from ServiceNow's recent AI acquisition Moveworks.
In the press release touting these rollouts, ServiceNow wrote that the Autonomous Workforce is in "controlled availability" starting on Thursday. The company expects it to be generally available in the second quarter of this year; it did not get more specific. It added that EmployeeWorks is available immediately.
High potential
As with any new product, especially an AI platform that hasn't been seen in its current configuration, it's hard to judge what impact Autonomous Workforce and EmployeeWorks will have on the market right now. It's also near-impossible at this point to forecast how they might affect ServiceNow's overall financials.
Still, the company has two new products that -- if the hype is accurate -- are both powerful and useful not only for existing clients but also for new ones. That alone would make me bullish on this enthusiastically AI-embracing company.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.
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