ServiceNow seals USD 2.85 Bn deal to acquire AI Startup Moveworks

ServiceNow, has announced the acquisition of AI automation startup Moveworks for $2.85 billion in a cash-and-stock deal. The acquisition, which is ServiceNow’s largest to date, is expected to enhance its AI-driven automation capabilities for IT, HR, and enterprise services. The deal marks a significant move in the AI-powered automation space, strengthening ServiceNow’s position in a highly competitive market.

Moveworks, founded in 2016 and based in Mountain View, California, specializes in AI-powered virtual assistants and enterprise automation. The company has a strong presence in IT support and HR automation, with an impressive clientele that includes Unilever, GitHub, Siemens, and Toyota. ServiceNow CEO Bill McDermott emphasized that this acquisition will help businesses automate workflows more efficiently, reducing human dependency in IT service management and employee support.

The deal was officially announced on March 10, 2025, and is expected to be completed in the second half of the year. Once finalized, Moveworks' AI capabilities will be integrated into ServiceNow’s existing platform to enhance enterprise automation further. The acquisition will benefit ServiceNow’s global markets, including North America, Europe, and the Asia-Pacific region, where its enterprise customer base is expanding rapidly.

The importance of this acquisition lies in several key factors. Moveworks' AI-driven virtual assistants will help ServiceNow improve automation in IT support, HR workflows, and enterprise service management. The deal enhances customer experience by streamlining enterprise search and task automation, allowing employees to access support more efficiently. Additionally, this move positions ServiceNow as a stronger competitor against industry leaders like Microsoft, Salesforce, and Google, all of whom are heavily investing in AI-powered enterprise automation.

Moveworks had already surpassed $100 million in annual recurring revenue, with over 5 million users leveraging its AI assistant for various enterprise needs. This acquisition is expected to drive further revenue growth for ServiceNow, aligning with its long-term AI strategy. By integrating Moveworks' capabilities, ServiceNow aims to develop more advanced “agentic AI” solutions, where AI-powered agents seamlessly manage enterprise tasks with minimal human intervention.

For businesses, this acquisition means faster IT and HR support, as ServiceNow will integrate Moveworks’ AI assistants into its platform to reduce service ticket resolution times. Additionally, automating repetitive IT and HR processes will lead to lower operational costs for enterprises. The stronger AI integration will also improve user experience across platforms like Microsoft Teams and Slack, making it easier for employees to access support instantly.

With this acquisition, ServiceNow is reinforcing its commitment to AI-powered enterprise solutions. The integration of Moveworks’ capabilities into its platform will likely result in more AI-driven enhancements in workflow automation, enterprise search, and employee self-service solutions. The deal is expected to be finalized by the second half of 2025 and could serve as a major milestone in the evolution of AI-powered business automation.

ServiceNow’s acquisition of Moveworks is a transformative step in its AI strategy, strengthening its position in the enterprise automation market. By combining forces, the two companies aim to revolutionize IT and HR service management, offering businesses more efficient, AI-powered solutions for workflow automation and employee support. As AI continues to shape the future of work, this acquisition positions ServiceNow as a leader in AI-powered enterprise automation, delivering innovative and scalable solutions to businesses worldwide.