(Bloomberg) -- ServiceNow Inc.’s new generative AI-focused product tier will take time to boost financial results, executives said, sending a lukewarm message to investors looking for big impact from the highly hyped technology.

“While it might take some time to have a material impact to the top line, the opportunity is massive,” Chief Financial Officer Gina Mastantuono said Monday during ServiceNow’s annual event for Wall Street analysts. The company may see $1 billion to $2.5 billion in incremental revenue just from current users of its service desk products upgrading to a higher-priced tier with tools for generative artificial intelligence, Mastantuono added, without specifying a time frame.

The Santa Clara, California-based company makes applications that help companies organize and automate their personnel and information technology operations. The new AI-oriented tier, released late last year, is ServiceNow’s fastest-growing product ever, Chief Executive Officer Bill McDermott said in April.

Heading into the event, investors were closely watching for signals about how quickly customers are adopting the new AI-focused product tier. Several analysts said in notes before the event that they were looking for more specificity than executives provided with ServiceNow’s recent earnings report last month. 

While many software companies have touted the revenue-boosting potential of new generative AI tools, few have plainly disclosed financial information. Amazon.com Inc. said that AI accounted for a multibillion-dollar chunk of its cloud division’s annual run rate. International Business Machines Corp. said last month that its AI business — split between consulting and software — has booked more than $1 billion in business since mid-2023.

ServiceNow also affirmed a previous 2026 sales outlook of $15 billion in subscription revenue. Analysts, on average, are estimating $15.5 billion, according to data compiled by Bloomberg.

The shares were little changed in extended trading after closing at $726.56 in New York. The stock has gained 2.8% this year, compared with a 6.3% rise for the S&P 500 Software Index.

©2024 Bloomberg L.P.