Nvidia and ServiceNow on Wednesday announced a partnership to develop enterprise-grade capabilities in generative artificial intelligence to vastly improve business processes. The news could be a catalyst for NVDA stock and NOW stock.
Using Nvidia software, services and computing hardware, ServiceNow is developing custom large language models trained on data specifically for its ServiceNow Platform. Artificial intelligence applications then will offer shortcuts for workers, starting with information technology help desks.
For instance, generative AI can summarize user problems in a service ticket automatically. That process today takes about seven to eight minutes to do manually. That will free up time for service desk agents to handle more complex problems or to assist other users.
Eventually the AI learnings will be fed into the self-service functions of the help desk.
ServiceNow announced the partnership with Nvidia at its Knowledge 2023 conference in Las Vegas.
NVDA Stock, NOW Stock On The Rise
On the stock market today, NVDA stock rose 3.3% to 301.78 while NOW stock surged 5.3% to 492.92. ServiceNow also announced a stock buyback of up to $1.5 billion.
In addition to summarizing service tickets, the Nvidia AI technology will automate other workflows for ServiceNow's IT help desk. That includes ticket auto-routing, ticket auto-resolution, incident severity prediction, root-cause analysis and similar-incident detection.
Through its partnership with Nvidia, ServiceNow intends to develop new uses for generative AI across the enterprise, including for IT departments, customer service teams, employees and developers. Also, it hopes to strengthen workflow automation and rapidly increase productivity.
Using Company-Specific Information For AI
"IT is the nervous system of every modern enterprise in every industry," Nvidia Chief Executive Jensen Huang said in a news release. "Our collaboration to build super-specialized generative AI for enterprises will boost the capability and productivity of IT professionals worldwide using the ServiceNow platform."
The generative AI from the ServiceNow platform will be based on company-specific information. By contrast, generative AI programs like ChatGPT from OpenAI are trained on publicly available information.
The ServiceNow partnership news is the latest in a steady flow of announcements about artificial intelligence by Nvidia that have boosted NVDA stock.
NVDA Stock Has Doubled This Year
Year to date through Wednesday's close, NVDA stock is up 106.5%. Meanwhile, NOW stock is up 27%. For comparison, the S&P 500 index is up 8.3% so far in 2023.
Investor excitement about artificial intelligence has boosted a bunch of tech stocks. They include Adobe, AMD, Google parent Alphabet and Microsoft.
Generative AI was a big focus at ServiceNow's Knowledge conference. The enterprise software firm also announced AI advancements for finance and supply-chain workflows.
Nvidia, ServiceNow On IBD Stock Lists
ServiceNow and Nvidia are exploring a number of generative AI use cases to simplify and improve productivity across the enterprise. This includes developing intelligent virtual assistants and agents to help quickly resolve a broad range of user questions and support requests with purpose-built AI chatbots that use large language models and focus on defined IT tasks.
"As adoption of generative AI continues to accelerate, organizations are turning to trusted vendors with battle-tested, secure AI capabilities to boost productivity, gain a competitive edge, and keep data and IP (intellectual property) secure," ServiceNow Chief Operating Officer C.J. Desai said in a written statement. "Together, Nvidia and ServiceNow will help drive new levels of automation to fuel productivity and maximize business impact."
Nvidia and ServiceNow are both on the IBD Tech Leaders list. Additionally, NVDA stock is on IBD's Leaderboard and NOW stock is on the IBD Big Cap 20 stock list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
