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ServiceNow CEO Bill McDermott: Silicon Valley is getting enterprise AI wrong

Fast Company Tech Victor Dey May 13, 2026
ServiceNow CEO Bill McDermott: Silicon Valley is getting enterprise AI wrong
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# The Real Story Behind Enterprise AI's Threat to Software Companies Enterprise software companies are worried that AI agents will let workers skip their expensive software entirely—just giving orders in plain English instead of clicking through dashboards and menus. But ServiceNow's CEO argues that AI alone can't actually do anything without human approval and human systems to execute the work, meaning the traditional software platforms will remain essential as the "action takers" that carry out what AI recommends. The real shift, he suggests, isn't that software becomes worthless, but rather where companies get their value from it.

Enterprise software has long operated on a relatively stable hierarchy of power: The companies that owned the interface largely owned the customer relationship. Employees moved through dashboards, tabs, forms, and menus; software vendors sold more seats, expanded across departments, and steadily com

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