How AI and Cybersecurity Are Reshaping ServiceNow
CSO Online, Wednesday, September 9th, 2026
Facing SaaS disruption from AI, ServiceNow is shifting to consumption-based revenue and expanding into cybersecurity.
ServiceNow's share price fell about 30% by mid-2026 amid a so-called SaaS apocalypse, as investors worried AI agents and vibe-coding tools would erode seat-based subscriptions.
The company's June 2026 Financial Analyst Day showed only 50% of 2025 net new annual contract value came from seat-based subscriptions, with growth increasingly from consumed services such as infrastructure, integrations, AI tokens, and cybersecurity. Its $7.75 billion acquisition of Armis signals a push into cyber as AI drives ITSM and security to converge.
ServiceNow's long history of AI investments, culminating in the ServiceNow AI Platform and AI Control Tower, positions it to act as a unifying AI front end.