ServiceNow said AI net new annual contract value beat expectations in the third quarter of 2026, letting it raise its year-end AI target for the second time this year, from $1 billion at the start of the year to $1.7 billion, as year-to-date consumption in production rose more than 13x year over year
ServiceNow raised its AI annual contract value target for 2026 to $1.7 billion, up 70% from the beginning of the year. ServiceNow President and CFO Gina Mastantuono stated this in the ServiceNow Reports Third Quarter 2026 Financial Results on October 28, 2026. This target represents the expected annual contract value from AI initiatives.
Verified 2026-11-01
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Enterprise software buyers are now signing paid AI contracts faster than the vendor itself planned, evidence that AI is moving from pilots into budgeted, recurring spend.
More on Adoption
- Stanford's 2026 AI Index, citing McKinsey's 2025 survey, breaks down AI-agent deployment by business function. Even in IT, the function with the most agent activity, the share of organisations reporting no AI-agent use at all in 2025 was still 69% of organizations report zero AI-agent use in IT, the business function with the heaviest agent activity
- Stanford's 2026 AI Index reports that organizations' use of generative AI specifically, not just AI overall, grew sharply in 2025: the share of organizations that regularly use generative AI in at least one business function reached 79%, up from 71% in 2024
- Stanford's 2026 AI Index compared generative AI's adoption curve after its mass-market debut to that of earlier transformative technologies, and found generative AI reached 53% population adoption within three years, faster than the PC or the internet
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