Amit Zavery states that those companies that don’t transition to AI would have a difficult time.
- Zavery discussed the shift in Saas business models, from a focus on increasing ‘seats’ and users to offering AI-driven platforms that automate work.
- ‘If you’re not using the latest technology and driving the adoption to customers, you will be left behind’ – Bloomberg interview.
- Software stocks have come under broad selling pressure in recent weeks amid renewed fears of AI-driven disruption.
At a time when software stocks are undergoing a sharp correction, ServiceNow COO Amit Zavery warned that the AI transition will inevitably force some companies out of the market.
“What we are witnessing is ‘software Darwinism,’” Zavery told Bloomberg News in an interview on the sidelines of the India AI Summit in New Delhi.
“For the last decade, SaaS was about adding more seats and more users. In the Agentic AI era, that model is breaking. If you are a software company that provides a tool where a human just enters data, you are in trouble.”
Highlighting a shift from “old Saas” to “AI platform,” he argued that customers now seek agentic platforms that automate work rather than low-cost software with a few more features.
“There will be some software companies that will not be able to make the transformation to AI,” Zavery said. “If you’re not using the latest technology and driving the adoption to customers, you will be left behind.”
Software Selloff
The comments capture the mood in the software market amid fresh fears about AI-related disruption, particularly concerns that AI tools will reduce demand for niche enterprise software.
The software selloff has engulfed the broader tech industry, with the Nasdaq 100 index declining 1.4% since the start of the year. High capex plans by Big Tech companies are also contributing to the downward sentiment.
Zavery ended with an optimistic note, saying that the same disruption and shakeup is a tailwind for companies like ServiceNow.
ServiceNow shares are down about 30% year to date, and had a ‘neutral’ sentiment on Stocktwits as of early Thursday.
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