ServiceNow CEO Bill McDermott is publicly refuting the notion that artificial intelligence poses an existential threat to software-as-a-service companies, a fear he dismisses as “Saaspocalypse nonsense.” Despite a significant downturn in ServiceNow’s stock price this year, McDermott remains steadfast in his belief that AI will ultimately propel the company to a trillion-dollar valuation, challenging Wall Street’s current skepticism. Shares of ServiceNow have fallen 39% this year, a stark contrast to the company’s consistent revenue growth under McDermott’s tenure. Since he took the helm in late 2019, annual revenue has climbed from $3.46 billion to $13.3 billion in 2025, with projections to exceed $15 billion this year. The company recently announced an ambitious forecast to double its revenue to at least $30 billion by 2030, yet this news saw only a modest increase in its stock.
McDermott, speaking from the company’s annual Knowledge conference in Las Vegas, articulated a vision where AI acts as a significant tailwind for ServiceNow, rather than a headwind. He contends that the market misunderstands the fundamental role of enterprise software in the age of AI. For artificial intelligence to deliver tangible benefits, it needs access to a company’s proprietary data, and enterprise software platforms like ServiceNow serve as the crucial gateway to that information. Without this context, AI models, in McDermott’s view, are merely “expensive advice.” This perspective underscores his conviction that established enterprise software providers, with their deep integration into corporate operations, are indispensable.
The CEO’s confidence is not merely rhetorical. In February, McDermott personally invested $3 million in ServiceNow shares. He also noted that over 90% of the company’s employees are buying its stock, signaling internal belief in the future trajectory. His long-standing career in enterprise software, including a nine-year stint as CEO or co-CEO of SAP, informs his understanding of the market dynamics. He observes that while many SaaS peers were already past their high-growth phases before the AI surge, ServiceNow has maintained over 20% annual growth during his leadership.
ServiceNow’s strategy to harness AI is evident in its recent product announcements and acquisitions. The company unveiled Action Fabric, a new service designed to facilitate AI agent interaction with ServiceNow applications, introducing a usage-based monetization model that moves beyond traditional seat-based licensing. This initiative reflects a broader expansion beyond conventional software offerings. Furthermore, ServiceNow has made strategic acquisitions to bolster its capabilities, including the $7.75 billion acquisition of cybersecurity firm Armis, which closed in April, and the $2.85 billion acquisition of agentic AI startup Moveworks, completed in December after a nine-month regulatory review. McDermott confirmed that these acquisitions have positioned the company where it needs to be, suggesting no further major M&A deals are immediately on the horizon.
McDermott also touched upon the broader implications of AI model makers like OpenAI, Anthropic, and SpaceXAI potentially going public. He believes this transparency will ultimately benefit the entire market, including companies like ServiceNow. As these AI innovators become publicly traded, their financial performance and projections will become clear, allowing investors to make more informed decisions about the AI landscape and its impact on related industries. This increased clarity, he suggests, will help rationalize the market and provide a clearer understanding of how companies like ServiceNow integrate and benefit from the evolving AI ecosystem. McDermott’s unwavering stance contrasts sharply with current market sentiment, setting the stage for a compelling narrative as ServiceNow navigates the complex interplay between technological innovation and investor perception.
