ServiceNow AI and AI agents
AI passed $1 billion in annual contract value in Q2 2026. Management targets AI at 30% of ACV by 2030.
The numbers
What it is
AI agents and generative AI features that run on the Now platform and act on workflows across IT, HR, customer service and security. Sold as AI-native SKUs and priced partly on consumption. ServiceNow's AI business sits inside the subscription base and is reported through it.
Why it matters to the stock. AI is the main argument for faster growth and higher prices. A trader watches whether AI ACV keeps compounding and whether AI costs cut into gross margin.
News
City of Raleigh reports 66% lower IT service desk costs after ServiceNow AI agent go-live
ServiceNow says the City of Raleigh became the first municipal government to run its IT Service Desk AI Specialist in production, cutting IT service desk costs by 66% through redirected staff time.
ServiceNow launches AI Workflow Factory, a continuous loop for process improvement
ServiceNow launched AI Workflow Factory, a repeating loop in which Process Mining finds business processes to change, Autonomous Engineer and Build Agent build the fixes, and App Engine runs them at scale.
Tech Mahindra and ServiceNow expand multi-year partnership to move enterprise AI into production
Tech Mahindra and ServiceNow expanded their multi-year partnership to move enterprise AI from pilots into production.
ServiceNow names Anthropic first design partner for Action Fabric and deepens NVIDIA tie-up
In its second-quarter release, ServiceNow said Anthropic became the first design partner for Action Fabric, which lets ServiceNow and third-party AI agents take governed actions through ServiceNow workflows.
Cognizant and ServiceNow partner to link AI governance platforms
Cognizant and ServiceNow announced a partnership that connects Cognizant's Neuro AI Trust platform with ServiceNow's AI Control Tower for ongoing AI governance.
ServiceNow expands AI specialists into CRM, employee service and security
ServiceNow added AI specialist agents at Knowledge 2026 beyond its IT service desk, covering CRM, employee service, and security and risk.
ServiceNow and Google Cloud widen AI agent partnership to telecom, retail and IT operations
ServiceNow expanded its partnership with Google Cloud to run AI agents across telecom networks, retail operations and IT incident management.
ServiceNow and Anthropic partner on AI apps; Claude becomes Build Agent default model
ServiceNow and Anthropic announced a partnership to help customers build AI-powered applications and apply governed AI in regulated industries.
ServiceNow and OpenAI expand multi-year AI collaboration
ServiceNow and OpenAI announced a multi-year agreement that makes OpenAI models a preferred intelligence capability for ServiceNow enterprise customers.