ServiceNow to invest $1.5 billion in the UK for localizing AI data processing.

• On Monday, ServiceNow, an American software giant, revealed plans to invest $1.5 billion in the U.K.
• The funds will be utilized to expand ServiceNow's U.K. operations, including the establishment of new office locations and the recruitment of additional staff.
• ServiceNow announced plans to expand its U.K. data centers to facilitate local processing of data on its large language models (LLMs).

The American enterprise software giant announced on Monday that it plans to invest $1.5 billion in the U.K. over the next five years, expressing confidence in Prime Minister Keir Starmer's efforts to attract foreign investment to the country.

The tech firm announced that it will allocate a large sum of money to expand its U.K. business, including acquiring new office space and increasing its employee count beyond the current 1,000 hires in Britain.

ServiceNow announced that it will invest in localizing the processing of data for its large language models (LLMs), which are AI models that require extensive training data to comprehend and produce text like a human.

The company announced that it would introduce GPUs to its data centers in London and Newport to enhance processing of data on its LLMs within the U.K. This will enable the development of "domain-specific LLMs" for U.K. clients and governments, ServiceNow stated.

European policymakers and regulators have been advocating for "AI sovereignty," which entails keeping the technologies and data used in advanced AI systems within Europe and ensuring they align with European culture and history.

ServiceNow announced plans to introduce new skills programs in the U.K., aiming to reach 240,000 learners.

The UK is leading the way in technological transformation on a massive scale in the era of AI, as stated by Bill McDermott, CEO of ServiceNow, on Monday.

"Our investment propels the U.K.'s drive to harness AI, enhancing people's lives, enriching experiences, and fortifying social connections. In partnership with ServiceNow and our customers in the U.K., we are building a future where technology benefits all."

As part of the International Investment Summit, Keir Starmer, the U.K. leader, will meet with 300 business leaders to promote foreign investment.

The market capitalization of ServiceNow is $194.6 billion, and its shares have increased by over 37% this year due to the excitement surrounding AI.

ServiceNow's cloud-based technology is designed to assist businesses in managing digital workflows. However, the company has not been hesitant to showcase its own AI capabilities.

Xanadu, a platform launched by ServiceNow last month, employs various AI technologies, including "agents," to increase worker productivity. These AI agents are designed to assist employees in completing tasks with minimal supervision.

In Q2 2024, the company reported EPS of $3.13, excluding items, on $2.63 billion in revenue, surpassing analyst predictions.

Apart from ServiceNow, other tech giants are also investing heavily in the U.K. as a hub for global AI innovation. Recently, opened its first global AI center in London, where it offers AI training and upskilling programs and encourages industry collaboration.

Salesforce invested $4 billion in the U.K. over five years, including the establishment of an AI center.