ServiceNow's Moat Weaker Amid Rising AI Risks, UBS Says

ServiceNow's (NOW) moat has weakened due to anecdotal evidence that workflow automation tasks can be automated with AI models, UBS analysts said in a Friday note to clients.Analysts said they had previously held the view that ServiceNow was better-positioned to deal with artificial intelligence relative to other application software firms.They said there are now more risks that more enterprises may opt into using AI models for workflow automation tasks rather than upgrading to ServiceNow's Pro Plus or Now Assist.The company is expected to record skinnier-than-normal beats in the coming quarters and has more limited upside to its organic growth guidance.UBS downgraded the stock's rating to neutral from buy and lowered its price target to $100 from $170.Price: $82.45, Change: $-7.37, Percent Change: -8.20%

-- ServiceNow's (NOW) moat has weakened due to anecdotal evidence that workflow automation tasks can be automated with AI models, UBS analysts said in a Friday note to clients.

Analysts said they had previously held the view that ServiceNow was better-positioned to deal with artificial intelligence relative to other application software firms.

They said there are now more risks that more enterprises may opt into using AI models for workflow automation tasks rather than upgrading to ServiceNow's Pro Plus or Now Assist.

The company is expected to record skinnier-than-normal beats in the coming quarters and has more limited upside to its organic growth guidance.

UBS downgraded the stock's rating to neutral from buy and lowered its price target to $100 from $170.

Price: $82.45, Change: $-7.37, Percent Change: -8.20%