ServiceNow, Inc. (NOW) Earnings Call Transcript & Summary

Okay. We're going to get started here in just a second. So I was waiting for a couple more people to trickle in. Again, thanks for joining. We'll get started here in one second Okay. It's 2 past hour. So let's get going. So Hi, and welcome, everyone. My name is Olivia Hyman, and I am a nonprofit solution consultant here at ServiceNow. Before we get started, I just have a few housekeeping things to share. So due to the number of attendees we have today, I've just automatically muted the line. This is to prevent any background noise during today's presentation. However, we do want to keep this presentation interactive. So if you have any questions throughout, just please feel free to put that in the Q&A window. And my SC counterpart Chuck is going to be happy to answer any questions as we're going along, or we will get back to you after the presentation, with answers to any specific questions. Today, I'm going to be talking about Generative AI on the Now Platform and how it is allowing nonprofit organizations to accelerate productivity, transform experiences and increase agility. So with that, let's get started. So first of all, let's start with the safe harbor statement. So this presentation may contain forward-looking statements that reflect the current beliefs of ServiceNow and are based on current information available. These forward-looking statements should not be relied upon in making purchasing decisions. So with that, let's get into it. We know that today's nonprofits face multiple challenges. The demand for more personalized experiences to attract and retain constituents is top of mind for nonprofits today. 73% of constituents agree that having a positive experience online makes them more likely to donate. In addition, 71% of supporters feel more engaged with a nonprofit when they would receive content that is personalized. Also, more constituents today are more devoted to causes than to specific organizations themselves. So 68% of constituents agree that nonprofits must prove that they are the most compelling option. This creates an increase in demand for a tailored and easy-to-use experience. It also presents great opportunities for nonprofits to innovate for impact. In today's world, constituents, volunteers and employees of organizations expect more personalized experiences and nonprofits need to optimize and create more efficiency in their back-end operations. With ServiceNow, you can provide a more digitized and optimized experience for all by utilizing exciting new features of generative AI. But who are we? So ServiceNow is born with a single purpose in mind to make the work -- the world to work better for everyone. So this year, we have doubled down on our focus on you, the nonprofit organizations by launching a dedicated servicenow.org team to serve you while also establishing a thriving community and unique solutions to address common challenges our platform is uniquely positioned to solve, which is what I'm going to be focused on, stay with generative AI. But before we get started, I want to give you a brief overview of our platform vision, which is really the differentiator that makes digital transformation possible. Let's start at the bottom of this slide. These are your systems of record. The tools you have today that hold data related to your constituent resources, volunteer information, events, providers, et cetera. Today, these systems are disjointed, which can lead to manual information exchange and just an overall clunky and frustrating experience. With ServiceNow, we let you tap into the most important data living in your systems of record, possibly consolidating these as they become redundant and utilizing one platform, one data model and one architecture, in order to take the data from these systems, aggregate the data into the Now platform and then utilizing workflows to streamline entire end-to-end processes. This allows you to improve the operations of the entire organization on one intelligent platform for the organization. In addition, the Now Platform approach promotes governance of AI itself. Instead of going out to chatGPT, which sits outside of ServiceNow, Gen AI sits within the Now platform, allowing this new functionality to be managed around the specific data you give it access to within the platform. And this ultimately comes together and end in great experiences for your constituents, your volunteers and your employees. With the Now platform, we can tailor this experience to the specific user to bring the most relevant information to the surface, utilizing automation, workflows and generative AI, removing manual tasks and promoting those great experiences. So this is really why we called in our platform, the platform of platforms for digital workflows. At servicenow.org, we have been working to define a vision to create a digital experience that brings relevant, meaningful information to volunteers, employees and your end constituents, allowing them to focus on your mission and then doing so in a way that removes that overwhelming feeling of information overload. These tailored AI-driven experiences can be configured for all different types of nonprofit. But today, we're going to focus on the back-end agent experience, narrowing in on an incident that is interfering with the operations of a nonprofit organization called community. So let's dive into the persona of Indira, an employee of community who is working as an agent on the back end. We will see today how generative AI can help her prioritize her work, identify root cause, quickly remediate issues as well as proactively suggest actions to allow Indira to be more efficient during her day. So with that, I'm going to switch over here to the demonstration. So I want to start by letting you know that the features and functionality in this demo around generative AI are part of our future release cycles and could be subject to change. But here, as we open the ServiceNow platform, we are logged in as Indira. She is an agent that supports volunteers and constituents within the service operations team. Indira's day-to-day has recently become more efficient, allowing her to remediate items quickly as our ServiceNow team is taking full advantage of the latest capabilities of AI on the Now platform. Generative AI and Now Assist are denoted by these star icons up here in the corner and also on the occurrence themselves and that she sees this within the platform and within her workspace. So if we click on this right here, Gen AI has helped to escalate a ticket in Indira's queue and identify an incident that needs immediate action and hopes to prevent further issues in the organization. From here, Indira can click on the record to begin working with the customer. I want to point out right here at the top of the sentiment that has been noted. The VIP customer Nick seems to be having a negative experience. This is derived from the activities related to the record as well as any updates Nick has given so far. Indira normally reads through the incident to better understand what the customer is experiencing and determine any steps the customer has taken. However, by leveraging Gen AI and Now Assist, she can now review the record quickly and determine any steps to take as well as a summarized recap of the incident, allowing Indira to take immediate action with these steps. From the recap, Indira notices the customer is having issues with the [indiscernible] X application. The customer has also received an article in the knowledge base hoping to resolve the issue. Now Assist has also updated the sentiment and that the customer is extremely frustrated based on their experience thus far. Indira begins leveraging AI through analysis to help her remediate this incident quickly. She pins the conversation to the side up here, allowing her to work efficiently between the record and our conversation with Now Assist. Indira leverages natural language understanding within Now Assist to state the steps the customer has taken so far and ask for recommendations on how to fix this issue. Now Assist is going to quickly return both internal and external information that could be related to the [indiscernible] X application issue. NowX recommends upgrading the version of [indiscernible] X based on the information gathered from the affected CIs and the impacted services in the incident ticket. As the customers' device is currently on version 5.0, there is a known issue to cause high CPU usage within this version. Gen AI through Now Assist suggested that Indira upgrades the application to version 6.0. One thing to note is that Gen AI is leveraging workflow automation and orchestration through the platform. This can include any approval needed to drive the workflow. I also want to note that Gen AI is leveraging integrations like SCCM or Jamf to push out any updates needed to the customers' devices. Now that Indira has the approval to update the customer's device, she leverages the suggestion by Now Assist to execute the workflow and upgrade [indiscernible] X. Now Assist is going to let Indira know that it has upgraded [indiscernible] X on the laptop and has drafted an update to the customer for her to review. From here, Indira can edit and post the comment back to the customer, allowing them to determine if their issue has been resolved. This is using our content generation capabilities within Gen AI. As we can see from the activity journal down here at the bottom, the customer has commented back thanking Indira as the update has resolved their issue. So now we're going to take a proactive approach. Now Assist helps Indira with root cause analysis and hopes of preventing any other customers from experiencing the same issues with [indiscernible] X by looking at the data within the platform in CMDB, Gen AI has determined 15 other customers that could also be impacted based on their version of the application. Once Indira has the approval, she decides to update the remaining customers in an effort to prevent a service-wide disruption. Now Assist has once again leveraged content generation within Gen AI and has created a knowledge article for Indira to review and post. After reviewing the article, Indira decides to have Gen AI assist with streamlining the content by creating a shortened version of the article description. From here, she could either publish the article or send it for a review based on her knowledge process within the organization. Once the article is published, this will allow customers to self-serve through the knowledge base, alleviating some of the workflow back to Indira's team. Lastly, Now Assist has taken a proactive step by asking Indira, if she wants to have the article added to her favorites. By favoriting the article, this allows Indira to become more efficient in finding the article for future need. Here we go. And as we bring generative AI into the ServiceNow platform, today's demo is just one example of how we can drive efficiency. So I hope this helps in your understanding of where we are at ServiceNow and are taking Gen AI and embedding it into the DNA of the ServiceNow platform itself. By bringing generative AI to the forefront of work, we hope you see the value and the possibilities that ServiceNow brings to every corner of your organization. So with that, we are concluding for the day, but thank you so much for your time today. We're going to wait around for about 5 more minutes for any lingering questions to trickle in. However, if you do think of anything after this presentation, don't hesitate to e-mail democenter@servicenow.com and we will get those questions answered for you. This is a new and exciting thing coming to the Now platform. So we really appreciate you joining us today. And we hope to see you on another demo in the future, and have a great rest of your day. Thanks so much for coming.