After being regarded as a side note to GenAI infrastructure investment, we are starting to see enterprises engage in software investment, particularly those that take advantage of GenAI/AI. Bellwethers such as Salesforce.com (CRM), GitLab (GTLB), DocuSign (DOCU), Asana (ASAN) and ServiceNow (NOW) have seen notable interest and investment in their GenAI-related products. So far, all the naysayers claiming GenAI investment would take years to generate meaningful revenue they should start looking at the numbers, let’s delve in.
Gartner who tends to be a great leading indicator for future purchases as they help enterprises select the appropriate vendors, highlights “very high” interest in “Generative AI” along with Knowledge Graphs as areas of focus within the year. Gartner’s Contract Value has accelerated the last two quarters and we see it in the companies’ numbers.
Salesforce.com cited the robust adoption of Agentforce with 200 deals signed within the first week of launch and thousands more in the pipeline.
GitLab’s posted a robust third quarter, citing an increasing contribution from GitLab Duo its GenAI solution that is driving 255 of initial order deals’ ARR and contributing to a 50% productivity improvement.
ServiceNow cited ramping deal momentum propelled by their GenAI products and increasing GenAI prioritization by its customers.
Asana’s stock increased 60% after reporting a strong quarter with a good amount of optimism around their recently announced AI Studio.
There are many more positive GenAI data points from Microsoft, C3AI, Adobe and others. Needless to say, GenAI next stage of applications utilizing the infrastructure has begun.
