Bank of America has reinstated ServiceNow Inc. (NYSE:NOW) as a top buy while assigning Salesforce Inc. (NYSE:CRM) an Underperform rating, citing artificial intelligence (AI) as the defining factor separating the futures of these two major software giants.
BofA Unveils Stark Contrast Between NOW And CRM
Speaking on CNBC, BofA analyst Tal Liani explained the stark contrast between the two platforms. He emphasized that while both companies are “deeply embedded in the workflow,” their ability to monetize AI differs drastically.
For ServiceNow, AI serves as a powerful “growth engine” because its core business of routing, governing, and auditing enterprise operations aligns perfectly with the need to deploy AI responsibly.
Liani highlighted that this advantage is already visible in the financial metrics, with ServiceNow currently growing at approximately 20%.
