Value Investing with Legends · Friday, October 30, 2026
Jim Engle pushes back against the notion that enterprise software companies are being severely disrupted by AI, arguing that essential systems of record like ServiceNow maintain deep process integration, regulatory compliance, and deterministic outcomes that probabilistic AI cannot easily replace.
“I would take issue with the enterprise software companies being so severely disrupted. ServiceNow is revenue growth is still in the high teens.”
“ServiceNow's great strength is that they're connected deeply into the business processes and the data of the firm. And they're also deterministic in their outcomes. You get the same outcome every time, whereas AI is a probabilistic-based system where you get the outcome you expect some of the time, most of the time.”