JPMorgan ServiceNow (NOW): AI driving pricing upgrades, customer spending growth, and accelerated commercialization by 2027. JPMorgan's latest research report highlights insights from conversations with CEOs of ServiceNow's top partners, revealing that NOW's Q3 business performance met expectations. Q4 is projected to contribute 35%-40% of the year's total bookings, with continued growth in million-dollar deals and sequential acceleration in sales pipelines and bookings. ServiceNow's new pricing model is gradually delivering commercial value, as all renewal customers of interviewed partners have migrated to the new SKUs. Most opted for the Advanced package, while about 10%-20% chose Prime, driving a 10%-25% increase in average customer spending. Although AI functionalities are currently more of an incremental sales driver for core ITSM business, enterprises remain cautious about the actual costs of AI usage. However, there has been no reduction in customer seats or budget overruns, indicating limited impact of AI on existing revenue models. The market is concerned whether AI Agents might replace traditional SaaS, but JPMorgan's research reinforces ServiceNow's competitive moat. NOW's core strength lies not only in providing IT service management software but also in serving as a workflow orchestration platform across systems, departments, and AI Agents. Even if enterprises increasingly adopt AI-native tools from Microsoft, Salesforce, or others in the future, they will still need a unified platform to manage task execution, permissions, and governance. ServiceNow is solidifying this position through its AI Control Tower. Additionally, partnerships with Armis and Veza are expanding IT, OT, and AI security governance capabilities, forming new growth trajectories. While autonomous AI Agents may begin replacing some IT service desks and customer support seats starting in 2027, management believes that revenue growth from consumer AI has the potential to offset the decline in traditional license volumes.