GSA, ServiceNow Unveil Landmark Partnership for AI-Driven Government Modernization

GSA and ServiceNow have struck a landmark deal to accelerate AI-driven government modernization. The agreement will provide eligible federal customers with discounts of up to 70% off the list price for ServiceNow's ITSM Pro and Pro Plus bundle, and a 40% discount for a standalone version of ITSM Pro. The deal aims to boost workflow efficiencies by up to 30% and streamline agentic transformation through a simplified licensing model.

The U.S. General Services Administration (GSA) has announced a landmark agreement with ServiceNow to accelerate AI-driven government modernization. The deal, which includes significant discounts for eligible federal customers, aims to boost workflow efficiencies by up to 30% and streamline agentic transformation through a simplified licensing model.

Under the agreement, federal agencies can access ServiceNow's ITSM Pro and Pro Plus bundle at a 70% discount off the list price, with options available for both FedRAMP High (IL4) and National Security Cloud (IL5) environments. This discount is available for a 1-year term through the contract period of performance [1]. Additionally, agencies can upgrade to a standalone version of ITSM Pro at a 40% discount off the list price through September 2026 [1].

The ServiceNow AI Platform, which powers the ITSM Pro and Pro Plus bundle, is designed to streamline a wide range of business processes and enhance government operations. The platform includes AI agents that can improve incident resolution times, provide real-time recommendations, and summarize case data to accelerate approvals [1]. This AI-first approach is aligned with President Trump's Executive Order on procurement consolidation and GSA's OneGov Strategy, which aims to deliver faster modernization, stronger collaboration, and significant cost savings for taxpayers [1].

ServiceNow's role as the AI control tower for this transformation has been highlighted by Bill McDermott, the company's chairman and CEO. "When President Trump says the federal government needs to operate like a best-run business, he means it. Our AI platform and solutions will help every federal agency consolidate the past, strengthen security, and deliver better outcomes for the American people," McDermott said [2].

The agreement is part of a broader trend of government agencies adopting AI technologies to improve efficiency and productivity. Since late April, GSA has brokered more than a dozen similar agreements with tech companies, resulting in cumulative estimated savings to taxpayers of several billion dollars [2]. ServiceNow has been a key player in this landscape, experiencing continued growth and winning new major government customers amid the uncertainty following the shift in the government contracting landscape [2].

The deal is expected to have a significant impact on government operations and services, as well as on the financial health of federal agencies. By leveraging AI-driven technologies, the federal government can streamline its processes, reduce costs, and improve the quality of services it provides to citizens.

References:
[1] https://www.morningstar.com/news/business-wire/20250903850951/gsa-and-servicenow-strike-landmark-onegov-deal-to-accelerate-ai-driven-government-modernization
[2] https://www.washingtontechnology.com/contracts/2025/09/servicenow-gsa-strike-onegov-deal-drive-government-ai-adoption/407850/