In a bold move to strengthen its artificial intelligence (AI) automation capabilities, ServiceNow announced on March 10, 2025, that it was acquiring Moveworks for US$2.85 billion.  

The deal is not just another acquisition either – it is a calculated step to bridge critical gaps in ServiceNow’s AI ecosystem, particularly in conversational AI, enterprise search, and in mid-market penetration.  

Moveworks, known for its rapid growth and intuitive AI-driven employee support solutions, also brings an expertise that could help ServiceNow address longstanding challenges.  

But will the integration be seamless, or will ServiceNow now face the same hurdles that have plagued previous AI acquisitions? Let’s break it down. 

Reach out to discuss this topic in depth. 

Key implications (What ServiceNow would tell you) 

For ServiceNow, this acquisition represents more than just acquiring AI capabilities – it’s about scaling AI-driven automation across enterprise workflows. Here’s how ServiceNow is positioning this move: 

  1. AI capability expansion 

ServiceNow has made strides in AI-driven workflow automation, but its AI capabilities have traditionally been rule-based, requiring structured inputs. With Moveworks’ conversational AI and Natural Language Processing (NLP) engine, ServiceNow aims to make AI-powered interactions more intuitive.  

Moveworks’ growth story is compelling – its Annual Recurring Revenue (ARR) surpassed US$100 million in late 2024, up from just US$55.6 million earlier in the year, demonstrating an accelerated adoption curve. This addition could bolster ServiceNow’s AI portfolio alongside its existing 10,000+ AI agents. 

  1. Enterprise search enhancements 

One of ServiceNow’s challenges has been enabling employees to find relevant information quickly. Moveworks’ “perceptive search” technology addresses this by using semantic search to understand employee intent across 100+ enterprise systems. This means employees no longer need to manually sift through vast knowledge bases – Moveworks’ AI does it for them. 

  1. CRM expansion 

By integrating Moveworks’ AI capabilities into its Customer Relationship Management (CRM) suite, ServiceNow strengthens its ability to automate customer service and sales workflows. This puts it in a better position to compete with Salesforce and Microsoft Dynamics, both of which have been integrating AI into their platforms. 

  1. Operational efficiency improvements 

Speed matters in Information Technology (IT), Human Resources (HR), and service desk workflows, and ServiceNow is betting that Moveworks can help reduce resolution times by up to 40%. Faster response times translate to increased productivity, aligning well with ServiceNow’s vision for AI-driven workflow automation. 

Thinking behind ServiceNow’s acquisition of Moveworks (Everest Group’s take) 

While ServiceNow paints this as a seamless addition to its AI ecosystem, the real question is: What gaps was it trying to fill? Here’s what really drove the acquisition: 

Synergy area Key ServiceNow issue Moveworks contribution 
AI architecture ServiceNow’s AI was largely rule-based, requiring structured workflow triggers, limiting its ability to handle unstructured queries in a conversational manner. Moveworks’ Natural Language Understanding (NLU) engine enables dynamic, free-text AI interactions, making AI-driven workflows more natural. 
Go-to market AI adoption within ServiceNow customers was slowed by complex implementations and required customization, delaying time-to-value. Moveworks’ AI-first model allows seamless plug-and-play integration, improving adoption rates. 
Product-Led Growth (PLG) Self-service AI capabilities required users to interact with predefined workflows, leading to slower adoption and higher dependence on professional services. Moveworks’ rapid deployment model reduces configuration overhead, driving faster adoption and supporting ServiceNow’s 30% operating margin target. 
Midmarket expansion ServiceNow’s pricing and deployment complexity made AI adoption challenging for mid-market firms that prioritize speed and flexibility. Moveworks’ commercial model is built for mid-market firms, offering faster deployment and easier AI integration. 

This acquisition is a response to ServiceNow’s need for faster AI adoption, reduced dependency on customization, and a stronger foothold in mid-market AI automation. 

What this acquisition does not address 

Despite the strengths of this acquisition, some critical gaps remain in ServiceNow’s portfolio: 

  1. Vertical-specific AI solutions – Moveworks is a horizontal AI platform, lacking industry-specific models for highly regulated sectors like healthcare and government
  1. Data governance complexity – ServiceNow follows a structured data model, while Moveworks thrives on unstructured analysis, making integration a challenge
  1. Hyperautomation & RPA Gaps – This acquisition does not address ServiceNow’s lack of Robotic Process Automation (RPA) capabilities compared to UiPath and Blue Prism 
  1. Developer ecosystem risks – ServiceNow’s low-code App Engine may conflict with Moveworks’ proprietary AI development approach 

Conclusion: Balancing potential with execution risk 

ServiceNow’s acquisition of Moveworks is a strategic step toward strengthening AI-driven automation, but it’s not without challenges. While it enhances AI capabilities in search, conversational automation, and mid-market reach, it leaves gaps in hyperautomation, industry-specific AI solutions, and governance alignment. 

The US$2.85 billion price tag, reflecting more than 20x Moveworks’ 2024 revenue, signals high expectations from ServiceNow. The real test will be in execution – whether ServiceNow can successfully integrate Moveworks’ NLU capabilities without compromising security, governance, or flexibility. If executed well, this move could be a defining moment in enterprise AI. If not, it risks being another AI acquisition with potential left unrealized. 

If you found this blog interesting, check out our Navigating The Agentic AI Tech Landscape: Discovering The Ideal Strategic Partner | Blog – Everest Group, which delves deeper into another topic regarding AI. 

If you have any questions, are interested in exploring this acquisition or artificial intelligence further, or would like to discuss any other AI related topics in more detail, feel free to contact Abhishek Singh ([email protected]) and Anil Vijayan ([email protected]),

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