ServiceNow’s recent acquisition of Moveworks is more than just another tech buyout—it’s a clear sign of where the Enterprise Service Management industry is headed. Until recently, AI in service management has been treated as an add-on, a tool to enhance efficiency rather than a key platform capability.  Agentic AI - AI that acts autonomously to solve problems and drive outcomes – is has quickly established itself as the next transformative wave that is going to change the service management landscape. ServiceNow’s $2.85 billion investment in Moveworks confirms it.

The team here at Servicely has always believed that AI would form a foundational layer in service management platforms, and that true AI-powered service management requires a shift in business operations to embrace AI working alongside service agents and as a first-level virtual agent that helps triage work and shifts the burden of service left. With this acquisition, ServiceNow is signalling a commitment to this vision.

Why ServiceNow acquired Moveworks: Agentic AI, Competition, and Increased Customer Spend

ServiceNow’s announcement of this acquisition speaks to improvements in the AI capabilities within the platform. With Moveworks strong reputation for its AI assistant’s ability to autonomously resolve IT issues, answer HR queries and streamline enterprise search, the Moveworks acquisition will certainly improve ServiceNow’s own agentic AI and give them a leg up in delivering agentic AI functionality to their customers.

They’ve also taken an agentic AI competitor and turned them into a key capability. Prospective customers who were looking at combining Moveworks with an existing or alternative enterprise service management platform may have to consider a move to ServiceNow if they want to take advantage of Moveworks AI agents.

ServiceNow has also added another product to their ever-growing catalogue, with another feature-set available to sell to ServiceNow customers to expand the annual contract value of existing clients.

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What does this mean for Moveworks Customers?

While existing ServiceNow customers are set to benefit from the added AI capabilities of Moveworks as it becomes more tightly integrated within the ServiceNow ecosystem, whether Moveworks customers get the shorter end of the stick is yet to be seen.

While many Moveworks customers are likely already ServiceNow customers, there will be some customers using other service management platforms that may be forced to choose between their current platform and Moveworks at some point in the near future.

1. They may be forced to migrate to ServiceNow

Moveworks has a wide range of integrations available, with many of these being service management platforms. The beauty of Moveworks was that it could bring agentic AI capabilities to whatever platform was being used already. The acquisition of Moveworks by ServiceNow has created a fear thatMoveWorks may become an exclusive ServiceNow feature and existing integrations may cease to work – leading to a choice of migrating to ServiceNow or losing Moveworks.

2. Complications with feature overlap

Existing customers of both ServiceNow and Moveworks are positioned to get the best of both worlds on capabilities… in theory. Both platforms have a range of overlapping features, including enterprise search and retrieval augmented generation. As Moveworks is absorbed into ServiceNow, will customers be double-paying for the same features? Will the two products continue to work well together and not clash?

3. Possibility of a price increase

While nothing has been said about Moveworks pricing, existing customers may soon find that their current licensing has been absorbed into aServiceNow product line-item. We may even see customers of both platforms being forced to increase their ServiceNow licensing to be compatible with Moveworks in the ServiceNow platform

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The Bigger Picture: AI as a Core Feature, Not an Add-On

ServiceNow’s Moveworks acquisition isn’t happening in a vacuum. It’s part of a larger industry trend where AI is becoming central to service management, not just a layer on top. For years, AI has been used to automate ticket routing, suggest knowledge base articles, and handle queries from end-users and customers. But we’re now entering an era where AI isn’t just responding to queries—it’s solving problems users are even aware of them.

This move reflects a shift toward AI-driven service experiences where:

• Proactive AI is always working – AI will predict and prevent disruptions by analysing data, identifying patterns and taking action
• AI agents are the first layer of service – end-users have access to 24/7 support from conversational AI virtual agents that can answer questions, resolve issues and fulfill requests.
• The work of service agents is easier and more productive – with AI agents providing guidance and carrying out actions alongside your human agents.

At Servicely our vision has always been to embed AI as a core capability in the platform, born in the era of AI. We believe that AI should drive service management, not just support it. That means moving beyond chatbots and ticket automation to create AI that understands context, makes decisions, and takes action autonomously. ServiceNow’s acquisition of Moveworks validates this approach and signals that the industry is moving in the same direction.

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What’s Next for AI in Service Management?

With this acquisition, ServiceNow is doubling down on AI being the future of service management. But what does that future look like?

1. ‍Greater AI Autonomy: Expect to see AI systems handling increasingly complex workflows, from IT troubleshooting to HR case resolution, without human intervention.
2. Deeper AI Integration: AI won’t be a separate module—it will be deeply embedded into service management platforms, making automation a default feature.
3. AI-Powered Personalisation: AI will tailor service experiences based on individual user behaviour, preferences, and past interactions.
4. Stronger AI Governance: As AI takes on a larger role, businesses will demand more transparency into AI decision-making and clearer guidelines around data privacy

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Final Thoughts

ServiceNow’s acquisition of Moveworks is a smart and some what expected decision – giving ServiceNow additional capabilities, another product to sell, and taking out a potential AI competitor in one fell swoop.

ServiceNow’s acquisition of Moveworks is a strong validation of the direction we’ve taken at Servicely—proving that AI is not just a bolt-on feature, but a core capability that must be deeply embedded in the platform to deliver real business value. As enterprise software leaders double down onAI-native strategies, it’s clear the market is shifting toward platforms that leverage AI to drive automation, boost productivity, and enhance employee and customer experiences.

Servicely has been purpose-built with this philosophy from day one—delivering contextual intelligence, next-best-action guidance, and proactive service delivery through AI woven into the fabric of the platform, not added on to.

Either way, one thing is clear: AI is no longer an option—it’s the future of service management.

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