Prediction: This Artificial Intelligence (AI) Software Company Could Be the Next Palantir

For quite some time, the view surrounding Palantir Technologies (NYSE: PLTR) was stuck somewhere between a generational software developer or an "AI imposter," depending on whom you ask. One of the biggest reasons for this polarizing viewpoint is that many investors simply do not understand what Palantir actually does.

Juxtaposing industry buzzwords such as "AI" and "data-driven insights" will only get you so far. At some point, a business needs to prove that it's marketing tactics are bearing fruit. And, in fact, over the past year Palantir has witnessed a new wave of growth thanks to its lineup of data analytics software platforms.

The company has not only accelerated its top line, but it's also been consistently expanding profit margins and has transitioned from a cash-burning operation to a profitable enterprise. Recently, Palantir became a member of the S&P 500 and is working closely with some of the tech sector's largest incumbents, including Microsoft and Oracle.

Today, another company in this sector also merits a closer look: ServiceNow (NYSE: NOW). Ever heard of it? I'm going to detail how ServiceNow is quietly disrupting the world of enterprise software -- similar to what Palantir has done. Moreover, I'll explore how AI is playing a major role in the company's current growth trajectory and assess if now is a lucrative opportunity to scoop up shares.

What does ServiceNow do?

About a year ago, ServiceNow CEO Bill McDermott sat down for an interview with David Rubenstein -- a private equity investor and former policy advisor during President Jimmy Carter's administration.

When asked about what ServiceNow actually does, McDermott simply referred to the company as the "IT backbone" for businesses looking to build out digital infrastructure. While I appreciate the metaphor here, I'll admit that this explanation is still a little vague.

Let's look at an example to better understand the ServiceNow platform. From finance, sales and marketing, operations, human resources, and IT management, corporations have a separate department for just about everything. As a result, organizational workflows can be slow-moving, and employees can be left waiting for an optimal solution for hours or even days.

That's where ServiceNow comes in. The company offers a comprehensive suite of SaaS-based tools and services aimed to help streamline generic inefficiencies within organizations. This helps employees and team members better track the status of important issues or projects, ultimately driving higher productivity.