We recently compiled a list of the 8 AI News Updates Investors Should Not Miss.In this article, we are going to take a look at where ServiceNow, Inc. (NYSE:NOW) stands against the other AI stocks.
Europe is back and means business in the artificial intelligence race. That's the sentiment echoed at the Artificial Intelligence Action Summit in Paris as France President Macron touted a $112.8 billion investment in AI. The massive investment comes as four of the biggest US tech giants plan to spend $325 billion to further strengthen their AI ambitions in 2025.
France's $112.8 billion underscores Europe's desire to take on the US and China, which have dominated the AI debate on innovations and investment in recent years. For starters, the US is receiving praise as part of the $500 billion Stargate project as China appears to have an edge on innovation following DeepSeek's revelation of cost-effective AI models.
Critics of Europe have long argued that the continent has overregulated the tech sector, hindering innovation. Nevertheless, some in the technology sector believe that Europe is headed in the right direction, even though that perception hasn't completely changed.
"As a European region, at least, we are starting to see global leaders emerge, and that's the thing we really need," Victor Riparbelli, CEO of AI video company Synthesia, told CNBC in an interview on Monday.
While there appears to be a tussle or fierce competition between nations to spearhead the AI revolution, China has made it clear that it is willing to work with other countries. Beijing insists it is willing and ready to promote development, safeguard security, and share achievements in the field of artificial intelligence.
According to Chinese President Xi Jinping's special representative, Zhang Guoqing, AI has become an essential driving force for the new round of scientific and technological revolution and industrial transformation. China has always participated in global cooperation and governance on AI with a highly responsible attitude.
Corporations between nations instead of competing against each other to control the spoils are key to unlocking the full advantages of the AI revolution. Likewise, economists at Goldman Sachs expect widespread adoption of generative AI to raise US labour productivity by 15% over the next 10 years. It is also likely to unlock about $4.5 trillion in annual US GDP.
AI economic benefits are anticipated to flow to hardware and infrastructure providers early on. Later, they will spread to platform and application developers, and finally, they will manifest as increases in productivity and efficiency throughout the industry as a whole. According to the Goldman Sachs team, the US AI investment cycle will peak at 2% of GDP before declining as the compute costs of running AI queries and training AI models decline. Investment in AI software was expected to rise gradually over time as end-user adoption rose.
According to the Goldman Sachs team's projections, the US will begin to see productivity gains from generative AI technology in 2027, with the impact peaking in the early 2030s. According to these projections, the US timeline is a few years ahead of other developed markets and important emerging market nations.
"Given that potential cost savings from generative AI are large and the marginal cost of deployment once applications are developed will likely be very small, we see the adoption of generative AI as more of a question of 'when' rather than 'if," Joseph Briggs, co-leader of the Global Economics team.
According to Briggs, the kinds of work tasks that generative AI can automate would save several thousand dollars annually per worker, and Goldman Sachs Research continues to predict that AI adoption will increase in the medium term.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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ServiceNow, Inc. (NOW) – AI-Driven Workflow Automation for Digital Businesses
A team of software engineers at desks working on code for a cutting-edge cloud computing solution.
ServiceNow, Inc. (NYSE:NOW) is a software application company that offers end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, and development tools. As a leading provider of AI platforms for business transformation, the company launched the new Government Transformation Suite on February 12th. The AI-powered suite is designed to increase visibility and accelerate return on investments while also accelerating efficiencies in federal agencies.
It is intended to optimize software investments, help federal agencies manage assets, save time, and change the experience of government employees. About $125 billion is spent annually on IT by the US government, much of which cannot be audited or measured against real usage or mission requirements. With its single architecture and single data model, the AI-first ServiceNow Platform serves as a unifier on top of obsolete tech stacks and legacy systems to activate workflows across departments and simplify complexity. Fueled by millions of automation, knowledge bases, and tools, and with access to trillions of workflow executions, ServiceNow, Inc. (NYSE:NOW) has expanded its capabilities to boost productivity and reduce costs.
Steve Walters, senior vice president, public sector, ServiceNow, stated, "The federal government is focused on improving programs and policies through transparency, efficiency, and accountability is a critical imperative. The new ServiceNow Government Transformation Suite helps agencies work smarter and drive efficiency at speed to move beyond incremental improvements to exponential gains. The goal of Government Transformation Suite is to help agency leaders demonstrate ROI on their technology investments, while also navigating modernization and efficiency priorities by adding intelligence, speed, and staying mission ready.”
Overall NOW ranks 3rd on our list of the trending AI stocks. While we acknowledge the potential of NOW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
