Nvidia and ServiceNow have partnered to develop enterprise-grade capabilities for generative artificial intelligence that can improve business processes. This announcement may trigger a rally in the shares of both companies. ServiceNow will use Nvidia’s software, services, and computing hardware to develop custom large-scale language models trained on data exclusively for the ServiceNow platform. For example, a generative AI can automatically summarize user issues into service her tickets, which currently takes 7-8 minutes to do manually. This frees up time for service desk agents to work on more complex issues or help others. Ultimately, AI learning will be incorporated into help desk self-service capabilities.
ServiceNow announced its partnership with Nvidia at the Knowledge 2023 conference in Las Vegas. Alongside this announcement, ServiceNow has also announced a share buyback of up to $1.5 billion. In addition to service ticket summarization, Nvidia AI technology automates other workflows for ServiceNow’s IT help desk, such as automatic ticket routing, automatic ticket resolution, incident severity prediction, root cause analysis, and similar incident detection. Through its partnership with Nvidia, ServiceNow aims to develop new uses for generative AI across the enterprise, including IT departments, customer service teams, employees, and developers, and to enhance workflow automation to rapidly improve productivity.
Generative AI programs like OpenAI’s ChatGPT are trained on publicly available information. In contrast, ServiceNow will use company-specific information to develop its generative AI capabilities. According to NVIDIA CEO Jensen Huang, “Our collaboration to build hyper-specialized generative AI for the enterprise will improve the capabilities and productivity of IT professionals around the world who use the ServiceNow platform.”
In the beginning of the year to the close on Tuesday, NVDA shares have gone up by 100%, and NOW shares have gone up by 20.6%. This surge in stock prices is due to the increasing investor excitement over artificial intelligence, which has boosted many tech stocks, including Adobe, AMD, Google’s parent company Alphabet, and Microsoft.
ServiceNow and Nvidia are exploring a number of generative AI use cases to simplify and improve productivity across the enterprise. This includes intelligent virtual assistants and chatbots that can quickly resolve a wide range of user questions and support requests using specialized AI chatbots that use large language models and focus on defined IT tasks, including agent development.
CJ Desai, Chief Operating Officer of ServiceNow, said, “As the adoption of generative AI continues to accelerate, organizations are looking to improve their productivity, gain a competitive edge, and keep their data and IP (intellectual property) safe. We are looking for trusted vendors with secure AI capabilities. Nvidia and ServiceNow work together to help drive new levels of automation to boost productivity and maximize business impact.”
Both Nvidia and ServiceNow are on the IBD Tech Leaders list, NVDA stocks are featured on the IBD leaderboard, and NOW stocks are featured on the IBD Big Cap 20 stocks list.