ServiceNow Inc. (NYSE: NOW), a developer of business software solutions, has embarked on a pivotal three-year partnership with OpenAI to more deeply embed artificial intelligence within its core offerings. This venture is a clear indication of ServiceNow's ambition to escalate automation within essential business workflows and stimulate renewed growth momentum.
The agreement will see OpenAI’s sophisticated AI models directly integrated into ServiceNow's platform, enabling users to leverage ChatGPT-powered functionalities seamlessly within routine enterprise workflows. The companies have opted not to disclose the detailed financial terms of the pact, but it is confirmed that ServiceNow has committed a revenue stream to OpenAI as part of this arrangement.
OpenAI’s Chief Operating Officer, Brad Lightcap, emphasized that enterprises seek to have OpenAI’s intelligence embedded as a fundamental component in ServiceNow's processes. This efficiency is a driving force behind the collaborative efforts, aiming to deliver AI-powered tools that amplify productivity within existing business functions.
From OpenAI’s perspective, this alliance is a strategic move to enhance the presence and adoption of its technologies across enterprise environments, tapping into mature business software ecosystems. Conversely, ServiceNow benefits by accelerating the introduction of advanced AI capabilities into its solutions without dedicating extensive resources to developing proprietary large-scale language models.
Additionally, ServiceNow intends to advance AI-assisted customer service by creating AI voice agents using OpenAI's speech recognition and synthesis models. ServiceNow’s president and Chief Operating Officer, Amit Zavery, detailed that their engineering team will work closely with OpenAI to develop these tools and support deployment efforts tailored for their customer base.
This AI-centered partnership follows a testing phase for ServiceNow, which has experienced a notable 41% decline in its stock price over the previous year amid four consecutive quarters of missing earnings per share estimates. These financial headwinds have set the context for the company’s strategic recalibration towards AI and innovation.
In parallel with this AI initiative, ServiceNow disclosed plans in December to acquire cybersecurity firm Armis for $7.75 billion in an all-cash deal. This acquisition is expected to close in the second half of 2026, subject to regulatory approval, and is financed through a combination of cash reserves and debt issuance. The move aims to strengthen ServiceNow’s capability to deliver proactive and automated cybersecurity measures across all connected devices within enterprise infrastructures.
At the time of reporting, ServiceNow's shares were down 0.80% to $126.29, trading at a new 52-week low, reflecting ongoing market pressures and investor scrutiny. Despite these challenges, the company’s strategic embrace of AI and cybersecurity enhancements demonstrates a drive to restore growth prospects and competitive positioning.