ServiceNow simply dropped a billion-dollar reality bomb that ought to make Indian IT sit up and take discover. At its annual convention Information 2025 held in Las Vegas, the California-based enterprise software program firm confidently said that its flagship generative AI product, Now Help, is predicted to hit $1 billion in annual contract worth by 2026—a major soar from its present $250 million.
ServiceNow CFO Gina Mastantuono has reiterated that AI is not only a buzzword anymore, it’s a billion-dollar enterprise line for ServiceNow. She defined that some prospects are spending 60% extra on ServiceNow merchandise after upgrading to the AI-enhanced variations.
“The agentic AI capabilities are compelling and these double upgrades make for some actually nice math,” she mentioned. Furthermore, the market appears to agree—ServiceNow’s inventory has jumped 20% since April 23.
Whereas Indian IT corporations are busy stuffing AI into each press launch and earnings name, ServiceNow is on the market displaying what actual AI monetisation appears like.
Analysts mission ServiceNow’s annual income will prime $13 billion this 12 months—a rise from $10.9 billion in FY2024. The corporate has already reported strong monetary efficiency for the primary quarter of 2025, posting a 19% year-over-year improve in subscription revenues to $3.005 billion, or 20% in fixed foreign money.
That is surpassing all the prime 4 Indian IT corporations, together with TCS, Infosys, HCLTech, and Wipro, of their This fall FY25 studies launched this April.
ServiceNow has now additionally launched its new AI Platform, designed to operationalise any AI, agent or mannequin throughout the enterprise. It’s being utilized by corporations like Adobe, Visa, and Wells Fargo, and backed by deep integrations with Microsoft, NVIDIA, Google, and Oracle.
This additionally contains Apriel Nemotron 15B, a brand new 15B-parameter LLM co-developed with NVIDIA, optimised for quicker, cost-efficient inference. Indian IT doesn’t appear to be fascinated by making a foundational mannequin.
ServiceNow additionally has a brand new CRM AI-first platform. With an ACV of $1.4 billion and a 30% year-over-year development, ServiceNow’s CRM is now its fastest-growing product.
In a robust Q1 analyst name, ServiceNow CEO Invoice McDermott left little doubt about the place the corporate sees its future: enterprise AI. In response to him, the variety of Professional Plus offers, which embrace Now Help AI merchandise, quadrupled year-over-year, with 39 offers that includes three or extra Now Help merchandise.
Furthermore, deal sizes grew by one-third quarter-over-quarter, and 15 of the highest 20 offers included Professional Plus merchandise. “We’re main the AI race as a result of we ourselves are working it,” McDermott declared.
In the meantime, Indian IT Loves AI Washing
Indian IT giants TCS, Infosys, Wipro, HCLTech, and Tech Mahindra have been loudly proclaiming that AI is in “each shopper dialog”. But, in relation to disclosing income figures, the room goes silent.
The time period “AI washing” is beginning to resonate. Regardless of all of the speak round AI, the earnings studies reveal a unique story—flat revenues, modest deal development, and 0 disclosure on how a lot of it’s really pushed by AI.
TCS has over 150 agent-based AI options, however This fall income grew solely 0.8% sequentially. Infosys is reportedly working over 400 GenAI tasks—up from 100 within the earlier quarter. But, it declined to supply any income attribution. Wipro mentioned all 17 of its This fall offers included GenAI parts, however didn’t reveal income figures.
In distinction, Accenture, a worldwide peer, is doing it otherwise. It booked $1.4 billion in generative AI offers in simply Q2 FY25—and disclosed it. At the same time as revenues declined 5.8% QoQ, its GenAI story remained stable, forming practically 7% of complete bookings.
What Can Indian IT Study?
When requested what Indian IT corporations can study from ServiceNow’s method to AI deployment, Paul Smith, president, international buyer and discipline operations at ServiceNow, who stepped down from the position just lately, identified a standard pitfall: getting caught in infinite pilots.
“What I noticed, significantly about six to 9 months in the past, was a proliferation of AI pilots throughout corporations. Each week, there was a brand new experiment with a unique basis mannequin. Be it GPT, Mistral, Llama, DeepSeek, Claude—you identify it,” he advised AIM.
In response to Smith, this fragmented method results in minimal influence. “My robust recommendation is: make a platform wager. Working a small pilot takes simply as a lot effort as rolling out an enterprise-wide implementation. This can be a scale play,” he burdened.
Smith emphasised that AI’s true worth comes not simply from producing insights however from integrating these insights into the enterprise and enabling motion.
“Loads of these pilots function in silos. You may need an excellent chat expertise with a mannequin like ChatGPT, but when it’s not linked to your enterprise methods, it gained’t really do something,” he defined. “At ServiceNow, we’ve spent the final 20 years connecting the enterprise. So when AI is deployed on our platform, you possibly can each extract insights and instantly set off workflows to behave on them. That’s the place actual transformation occurs.”
He steered that Indian IT corporations ought to focus much less on constructing remoted experiments or debating whether or not to make use of open-source or proprietary fashions, and extra on embedding AI into platforms that may scale throughout their organisations.
Among the many Indian corporations, HCLTech stands out—albeit barely—for being upfront. It reported 12 GenAI-focused offers in This fall and highlighted 500 GenAI engagements throughout 400 shoppers. CEO C Vijayakumar urged buyers to take a long-term view. “Don’t fear in regards to the investments now—take a look at the ROIs we are able to get on the again of it.”
Tech Mahindra, too, is taking AI a bit extra critically. With India’s first Indic LLM, Mission Indus, and its ‘AI Delivered Proper’ mantra, the corporate is pushing AI into the core of its operations. CEO Mohit Joshi mentioned AI is now not a siloed effort however a part of its information and engineering companies. But, the income influence stays unclear. Progress was flat, earnings up 77%—however there was no point out of AI-related earnings.
That’s the place ServiceNow’s AI play turns into a lesson. It’s not simply constructing AI for the sake of it—it’s reshaping product traces, reengineering workflows, and most significantly, getting cash. That is how AI is meant to be adopted—not as a garnish however as the principle course.
Indian IT has the expertise, the size, and the worldwide presence. What it lacks, at this level, is AI maturity and monetisation self-discipline. With ServiceNow aiming for $1 billion in AI contracts and Accenture already there, it’s clear that AI isn’t simply hype—it’s income, development, and differentiation.
The submit ServiceNow’s $1 Billion AI Lesson for Indian IT appeared first on Analytics India Journal.
