Oct 29 (Reuters) - ServiceNow ( NOW ) raised its annual

subscription revenue forecast on Wednesday, driven by growing

demand for its artificial intelligence powered software

solutions.

Enterprise clients turn to AI-powered software offered by

companies such as ServiceNow ( NOW ) and Salesforce ( CRM ) to manage

their IT services and automate certain business operations in a

bid to save resources.

ServiceNow ( NOW ) expects full-year subscription revenue to be

between $12.84 billion and $12.85 billion, compared with its

prior projection range of $12.78 billion to 12.80 billion.

Analysts on average were estimating $12.79 billion,

according to data compiled by LSEG.

ServiceNow's ( NOW ) Now Assist offers generative AI features like

case summarization, AI-powered search, and virtual agent

interactions to streamline workflows and enhance productivity.

The firm, which counts telecom giant AT&T ( T ) and

ride-hailing company Uber Technologies ( UBER ) among its

customers, reported third-quarter subscription revenue of $3.30

billion, above analysts' estimate of $3.26 billion.

The company reported third-quarter revenue of $3.41 billion,

beating estimates of $3.35 billion.

On an adjusted basis, the company earned $4.82 per share for

the quarter ended September 30, compared with estimates of

$4.27.

The digital workflow firm also approved a five-for-one split

of the its common stock on Wednesday.

The company said in March that it would buy AI firm

Moveworks for $2.85 billion in cash and stock, marking its

largest-ever acquisition.

The company's planned Moveworks acquisition is under

regulatory review by the U.S. Justice Department.