{"id":33128,"date":"2026-05-09T13:06:13","date_gmt":"2026-05-09T13:06:13","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/33128\/"},"modified":"2026-05-09T13:06:13","modified_gmt":"2026-05-09T13:06:13","slug":"servicenows-customer-chief-warns-tokenmaxxing-is-an-a-i-hype-cycle","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/33128\/","title":{"rendered":"ServiceNow\u2019s Customer Chief Warns \u2018Tokenmaxxing\u2019 Is an A.I. Hype Cycle"},"content":{"rendered":"<p>\t\t<img fetchpriority=\"high\" decoding=\"async\" class=\"size-full-width wp-image-1646441\" src=\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/bernd-dittrich-Sp67cxbTHZ0-unsplash.jpg\" alt=\"An illustration of claude code and vibe coding.\" width=\"970\" height=\"647\"  \/>Even as A.I. token use explodes, some executives warn it risks becoming a vanity metric. Unsplash<\/p>\n<p>Tech workers are burning through massive amounts of A.I. compute in a race to <a href=\"https:\/\/observer.com\/2026\/02\/andrej-karpathy-new-term-ai-coding\/\" data-lasso-id=\"2953335\" rel=\"nofollow noopener\" target=\"_blank\">code faster<\/a> and automate more work. In Silicon Valley, the practice is known as \u201ctokenmaxxing,\u201d where employees push their use of ChatGPT and other large language models to the limit to maximize productivity.<\/p>\n<p>The trend has accelerated alongside the rise of A.I. coding tools and agents that can handle increasingly complex tasks. Unlike casually asking ChatGPT or Claude for writing help, generating code and running agentic workflows consumes far more tokens, or the units of data A.I. models process when users enter prompts or generate responses. Inside startups and tech firms, token usage is increasingly becoming a proxy for how heavily employees rely on A.I. in their daily work, with some engineers even leaving coding agents running overnight to speed up product development.<\/p>\n<p>But not every enterprise A.I. leader believes that more usage automatically translates into better results. \u201cI think this [tokenmaxxing] will be a short-lived hype cycle,\u201d <a href=\"https:\/\/observer.com\/person\/chris-bedi\/\" title=\"Chris Bedi\" class=\"company-link\" rel=\"nofollow noopener\" target=\"_blank\">Chris Bedi<\/a>, <a href=\"https:\/\/observer.com\/company\/servicenow\/\" title=\"ServiceNow\" class=\"company-link\" rel=\"nofollow noopener\" target=\"_blank\">ServiceNow<\/a>\u2019s chief customer officer, told Observer at the 2026 ServiceNow Knowledge event this week. \u201cThere\u2019s a bill to pay for those tokens.\u201d<\/p>\n<p>ServiceNow is a major cloud platform that helps enterprises manage, automate and design workflows. Roughly 90 percent of Fortune 500 companies use its products, including Nvidia, AT&amp;T and Delta Air Lines. In the first quarter of 2026, ServiceNow generated $3.67 billion in subscription revenue, a 19 percent year-over-year increase since making A.I. central to its business strategy.<\/p>\n<p>One of its flagship products is A.I. Control Tower, a platform that allows customers to oversee A.I. deployments, including tracking agentic behavior and measuring return on investment (ROI). The company also offers an \u201cautonomous workforce\u201d suite of \u201cA.I. specialist\u201d agents, which it has expanded to execute workflows across IT, customer relationship management, and security and risk, among other functions. It also invests heavily in A.I. upskilling through ServiceNow University, a platform designed to train workers to use A.I. in their jobs.<\/p>\n<p>As A.I. agents take on larger roles in the workforce, Bedi says ServiceNow aims to help customers maximize value without overspending. But in his conversations with enterprise customers, tokenmaxxing isn\u2019t top of mind. \u201cWhen I talk to the C-suite, tokenmaxxing does not come up,\u201d Bedi said.<\/p>\n<p>Bedi argues the trend conflates activity with value. \u201cIt\u2019s almost like measuring a restaurant based on how many ingredients they buy,\u201d he said. \u201cYou don\u2019t measure a restaurant that way. I wouldn\u2019t.\u201d A worker prompting an A.I. chatbot dozens of times to generate code, for example, may end up with the same result as someone who gets there in only a few prompts.<\/p>\n<p>His skepticism comes as A.I. usage inside tech companies is exploding. According to The New York Times, employees at A.I. firms are consuming staggering amounts of compute internally, with one <a href=\"https:\/\/observer.com\/company\/anthropic\/\" title=\"Anthropic\" class=\"company-link\" rel=\"nofollow noopener\" target=\"_blank\">Anthropic<\/a> employee allegedly<a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.nytimes.com\/2026\/03\/20\/technology\/tokenmaxxing-ai-agents.html\" data-lasso-id=\"2953336\"> racking up a $150,000 bill in a single month<\/a> using Claude Code. Tokenmaxxing has become emblematic of how quickly A.I. experimentation costs can spiral as workers face pressure to supercharge their workflows. As employers increasingly mandate A.I. adoption on the job, token usage is expected to climb even higher.<\/p>\n<p>That surge has been a boon for A.I. model providers that charge based on token consumption. <a href=\"https:\/\/observer.com\/company\/openai\/\" title=\"OpenAI\" class=\"company-link\" rel=\"nofollow noopener\" target=\"_blank\">OpenAI<\/a> says its ChatGPT APIs <a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/openai.com\/index\/accelerating-the-next-phase-ai\/\" data-lasso-id=\"2953337\">process more than 15 billion tokens per minute.<\/a> Google\u2019s Gemini models now <a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/s206.q4cdn.com\/479360582\/files\/doc_financials\/2026\/q1\/2026q1-alphabet-earnings-release.pdf\" data-lasso-id=\"2953338\">process more than 16 billion tokens per minute<\/a>\u2014a 60 percent year-over-year increase, according to its latest earnings report. For A.I. providers, enterprise adoption creates a powerful incentive structure: the more workers rely on A.I., the more revenue those systems generate.<\/p>\n<p>Some tech companies have encouraged employees to maximize token usage internally. At Meta, an employee <a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.theinformation.com\/articles\/meta-employees-vie-ai-token-legend-status\" data-lasso-id=\"2953339\">created an internal leaderboard<\/a> tracking token usage and highlighting top users, The Information reported in April. After the project leaked publicly and sparked debate over the value of ranking token consumption, the leaderboard<a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.wsj.com\/cio-journal\/why-some-companies-say-ai-tokenmaxxing-is-key-to-survival-e699a128\" data-lasso-id=\"2953340\"> was taken down<\/a>.<\/p>\n<p>Generous token budgets are increasingly being treated like premium software stipends or free meals. At Nvidia\u2019s annual GTC conference in March, CEO <a href=\"https:\/\/observer.com\/person\/jensen-huang\/\" title=\"Jensen Huang\" class=\"company-link\" rel=\"nofollow noopener\" target=\"_blank\">Jensen Huang<\/a> said engineers should expect annual token budgets worth roughly half their already high salaries, on top of base pay, so their output \u201ccould be amplified 10X.\u201d<\/p>\n<p>Still, a growing number of executives argue that tokenmaxxing risks becoming another Silicon Valley vanity metric. <a href=\"https:\/\/observer.com\/person\/yamini-rangan\/\" title=\"Yamini Rangan\" class=\"company-link\" rel=\"nofollow noopener\" target=\"_blank\">Yamini Rangan<\/a>, CEO of HubSpot, recently wrote on LinkedIn that \u201c<a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.linkedin.com\/posts\/yaminirangan_outcome-maxxing-token-maxxing-i-am-reading-activity-7448058389458296832-hREq\" data-lasso-id=\"2953341\">[Outcome maxxing &gt;&gt; token maxxing],<\/a>\u201d meaning measurable business outcomes matter more than usage. Andrew Lau, CEO of engineering intelligence firm Jellyfish, shared a similar view, calling tokenmaxxing a \u201c<a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.linkedin.com\/posts\/amlau_tokenmaxxing-is-having-a-moment-leaderboards-activity-7449881426121969664-rmAk\/\" data-lasso-id=\"2953342\">starting point<\/a>\u201d to amplify growth.<\/p>\n<p>According to Bedi, the value of A.I. is best measured by whether it meaningfully improves performance. Companies are still relying on familiar metrics: how much time workers save, how much output they produce, and whether A.I. improves operational efficiency.<\/p>\n<p>While less flashy than token counts, traditional business outcomes remain key to quantifying A.I. ROI, Bedi said. \u201cThe overall goal is, how do I help my workforce be as capable as possible on A.I., and how do I help them get comfortable using it?\u201d<\/p>\n<p>\t\t\t\t<img decoding=\"async\" itemprop=\"image\" src=\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/bernd-dittrich-Sp67cxbTHZ0-unsplash.jpg\" alt=\"ServiceNow\u2019s Customer Chief Warns \u2018Tokenmaxxing\u2019 Is an A.I. Hype Cycle\" style=\"display:none;width:0;\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"Even as A.I. token use explodes, some executives warn it risks becoming a vanity metric. Unsplash Tech workers&hellip;\n","protected":false},"author":2,"featured_media":33129,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[11108,24,53,25,309,21192,580,21193,21191,6561,2446,157,327,134,21194],"class_list":{"0":"post-33128","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ai","8":"tag-agentic-a-i","9":"tag-ai","10":"tag-anthropic","11":"tag-artificial-intelligence","12":"tag-business","13":"tag-business-interviews","14":"tag-chatgpt","15":"tag-chris-bedi","16":"tag-claud","17":"tag-interviews","18":"tag-jensen-huang","19":"tag-openai","20":"tag-servicenow","21":"tag-technology","22":"tag-yamini-rangan"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/33128","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=33128"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/33128\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/33129"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=33128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=33128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=33128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}