{"id":29429,"date":"2026-05-06T12:45:07","date_gmt":"2026-05-06T12:45:07","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/29429\/"},"modified":"2026-05-06T12:45:07","modified_gmt":"2026-05-06T12:45:07","slug":"jensen-huang-on-why-agentic-will-rewire-a-50-trillion-economy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/29429\/","title":{"rendered":"Jensen Huang on why ‘agentic’ will rewire a $50 trillion economy"},"content":{"rendered":"

Jensen Huang didn\u2019t have to be in Las Vegas on Tuesday. He runs the most valuable publicly traded company in the world. His chips power virtually every major AI system on the planet. He could have sent a video. He could have sent a lieutenant. Instead, he walked onto the main stage at ServiceNow\u2019s Knowledge 2026 conference\u2014for the third consecutive year\u2014and got the loudest reception in the room.<\/p>\n

\u201cI came,\u201d he told the crowd, grinning, \u201cbecause I want my ServiceNow.\u201d<\/p>\n

The laugh was genuine. But Nvidia<\/a> runs its employee workflows on ServiceNow. Its configure-price-quote system for supercomputers\u2014a document so complex it used to take five days to generate\u2014now takes five minutes, built on ServiceNow\u2019s CRM platform. Huang isn\u2019t just a partner endorsing a partner. He\u2019s a customer testifying to a thesis.<\/p>\n

The thesis stated plainly: the software industry is about to absorb an economy a hundred times its own size. And the infrastructure for that absorption runs through the partnership between these two companies. Huang\u2019s presence was a signal. And his message, delivered alongside ServiceNow Chairman and CEO Bill McDermott: the biggest technology shift in a generation is already underway, and most companies are dangerously unprepared for it.<\/p>\n

\u201cThis is one of the greatest transformations for the software industry ever,\u201d Huang told CNBC\u2019s Jon Fortt in a live broadcast from the Venetian. \u201cFor the first time, service is software. Software is service, and the service industry is 100x larger than the software industry.\u201d<\/p>\n

That\u2019s the bet. And ServiceNow, which McDermott says will cross nearly $16 billion in subscription revenue this year and will double to $30 billion by 2030, is positioning itself as the company that captures it.<\/p>\n

The problem nobody wanted to name<\/p>\n

Before the announcements, before Jensen\u2019s entrance to stadium-level applause, McDermott opened Day 1 with a provocation. Every AI pitch, he said, has been telling companies the same story: here\u2019s what AI can do\u00a0for\u00a0your business. But there\u2019s a blind spot\u2014and it\u2019s what AI can do\u00a0to\u00a0your business.<\/p>\n

He walked through the numbers: the average enterprise runs 367 different applications, with AI \u201cbolted on like a sidecar\u201d to each one. An AI agent at one company gained elevated permissions and deleted an entire production database\u2014customer data, reservations, backups\u2014in nine seconds. \u201cGovernance isn\u2019t a feature,\u201d McDermott said. \u201cIt\u2019s the whole ball game. Because without it, your whole company can come down.\u201d<\/p>\n

The action layer<\/p>\n

Into that gap, ServiceNow dropped a suite of announcements<\/a>. The centerpiece is what McDermott revealed in 2025 as the\u00a0AI Control Tower\u2014a unified governance layer that gives companies real-time visibility into every AI agent, model, and workflow running across their enterprise.<\/p>\n

Alongside it came\u00a0Project Arc, developed in partnership with Nvidia, which gives enterprises a secure \u201csandbox\u201d for deploying autonomous agents\u2014what Huang called Open Shell<\/a>. The idea: every agent gets identity management, access controls, and governance policies, the same way human employees do. \u201cYou have human agents and AI agents, and they basically govern the same way,\u201d Huang said on the keynote stage.<\/p>\n

ServiceNow also unveiled\u00a0Otto, a new AI-native front door that works across every enterprise system\u2014from Workday to SAP\u2014and\u00a0Action Fabric, which lets any AI agent (Claude, Codex, Gemini) call into ServiceNow\u2019s governed workflow engine and actually\u00a0execute\u00a0enterprise work, not just recommend it. McDermott closed the day with some thoughts at a fireside chat: \u201cAI thinks, and it\u2019s important to think \u2014\u00a0but it doesn\u2019t act.\u201d<\/p>\n

The $50 trillion frontier<\/p>\n

Huang\u2019s most striking argument wasn\u2019t about enterprise software at all. It was about the physical world.<\/p>\n

Until now, he argued, the entire industrial economy\u2014manufacturing plants, warehouses, logistics networks, roads, cities\u2014had been essentially untouched by IT and software. A $50 trillion opportunity that simply didn\u2019t exist for the tech industry. Agentic AI, he said, changes that equation entirely. \u201cThe entire manufacturing line will be operated by robots, managed by more robots, and the entire factory is a robot,\u201d Huang told Fortt. \u201cThey\u2019re going to run on top of ServiceNow, and you manage them just like employees.\u201d<\/p>\n

What computation is required to make all of this work? Huang put a number on it: the compute needed for agentic AI has increased 1,000% compared to generative AI just two years ago, because agents now have to read, reason, use tools, and generate far more tokens in real time. That\u2019s an extraordinary tailwind for Nvidia\u2014and it\u2019s also why Huang keeps showing up at ServiceNow events.<\/p>\n

FedEx<\/a> as the proof<\/p>\n

Theory is one thing. The conference\u2019s most substantive moment may have been a panel with FedEx CEO Raj Subramaniam and CDIO Vishal Talwar\u2014two executives whose company moves 18 million packages a day across 220 countries.<\/p>\n

Subramaniam, who started as a marketing associate 35 years ago and became only the second CEO in FedEx\u2019s history after Fred Smith, didn\u2019t arrive to deliver a polished testimonial. He talked about a digital twin of FedEx\u2019s supply chain that the company began building in 2020, which now generates two petabytes of data per day. He talked about identifying $1.8 trillion in inefficiency in global supply chains\u2014and FedEx\u2019s ambition to orchestrate those chains, not just move within them. FedEx now executes 5 million ServiceNow workflows per month across hire-to-retire, source-to-pay, and ship-to-collect processes. <\/p>\n

Talwar was more direct about what it took. \u201cFor a company like FedEx, where our brand has been synonymous with trust for the last 50 years, there is no room for error,\u201d he said. His framework: clarity of workflows, integrity of data, and a governance layer that treats AI agents the same way FedEx treats its 800,000 employees. \u201cWe treat them as a digital workforce that needs to be governed with the same rigor and policies as our human teams.\u201d<\/p>\n

For this story,\u00a0Fortune\u00a0journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing. ServiceNow is a Fortune partner and provided materials for review. <\/p>\n","protected":false},"excerpt":{"rendered":"Jensen Huang didn\u2019t have to be in Las Vegas on Tuesday. He runs the most valuable publicly traded…\n","protected":false},"author":2,"featured_media":29430,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[405,7537,19328,2446,58,327,136],"class_list":{"0":"post-29429","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-agentic-ai","8":"tag-ai-agents","9":"tag-artificial-intelligence-agents","10":"tag-fedex","11":"tag-jensen-huang","12":"tag-nvidia","13":"tag-servicenow","14":"tag-software"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/29429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=29429"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/29429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/29430"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=29429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=29429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=29429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}