ServiceNow Executive Questioned AI Competitive Moats

Amit Zavery argued that frontier AI models lack durable advantages without deep integration into enterprise workflows.

Updated on Oct. 6, 2026 in Artificial Intelligence

Isometric editorial illustration of a structured lattice of modular geometric steel blocks representing enterprise software integration. — ServiceNow has increased its AI-related annual contract value projections to $1.5 billion, citing the strategic importance of embedding AI models directly into enterprise workflows. AI Illustration. Upload story photo >

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Do you believe AI-integrated software will create a lasting advantage for established companies?

ServiceNow executive Amit Zavery stated that standalone AI models lack the deep domain knowledge required to maintain a durable competitive advantage. The company has consequently raised its AI-related annual contract value expectation from $1 billion to $1.5 billion.

Why it matters

Enterprise platforms maintain market relevance by tethering AI to proprietary internal data and operational workflows rather than relying solely on frontier models. This strategy highlights the divide between generic AI capabilities and the complex needs of large-scale business infrastructure.

ServiceNow processes 8 trillion transactions and 100 billion workflows annually, while large language models currently comprise less than 10 percent of its intellectual property. Maintenance currently represents 80 percent of total enterprise software expenditures.

The players

Amit Zavery

He is a high-ranking executive at ServiceNow who provides strategic leadership regarding the firm's technological direction.

ServiceNow

This enterprise software company specializes in cloud-based platforms that automate digital workflows for large organizations.

The details

ServiceNow prioritizes integrating AI across its existing business requirements and governance structures rather than relying on a single model. The firm actively switches between different large language models based on real-time cost and performance metrics to optimize its output.

October 6, 2026: The interview with Amit Zavery was published.
Past year: Fifty percent of the company's net-new revenue utilized non-seat-based pricing models.

The Tech Race

The company's pivot to consumption-based pricing follows the broader industry trend of moving away from traditional seat-based software licensing models. This shift forces tech providers to prove tangible business outcomes rather than just selling software access to individual employees.

Businesses can expect enterprise software costs to become more tied to actual usage and specific outcomes rather than fixed per-user licenses. This shift may increase the number of automated tasks a single employee can manage by leveraging internal business data.

The takeaway

The true value of AI in the workplace lies in its ability to master operational context rather than just generating content. Companies should prioritize software tools that integrate seamlessly with their unique internal data silos rather than chasing the newest frontier models.