The concern about the AI threat outweighed solid earnings from bellwether names like ServiceNow , whose shares plunged 10% Thursday. The enterprise software maker topped Wall Street's fourth-quarter earnings expectations and issued better-than-expected guidance. The pressure has deepened across the sector as investors question whether AI competitors and automation tools could erode demand for traditional software licenses and workflows. ServiceNow CEO Bill McDermott sought to counter investor fears on the company's earnings call Thursday, saying concerns that AI will displace software vendors are misplaced. "ServiceNow is the gateway to this shift, serving as the semantic layer that makes AI ubiquitous in the enterprise."