ServiceNow Offers Up to 70% Discount on Software to Federal Agencies in AI Push

ServiceNow is offering federal agencies discounts of up to 70% on upgrades to its software through a OneGov agreement with the US General Services Administration. The deal aims to power AI-first modernization for federal agencies. ServiceNow's AI Platform will provide agencies with advanced tools to automate workflows and enhance data analysis.

The U.S. General Services Administration (GSA) and ServiceNow have announced a landmark OneGov agreement aimed at powering AI-first modernization for federal agencies. The deal, which was revealed on September 2, 2025, is expected to significantly boost workflow efficiencies and deliver substantial cost savings to the federal government.

Under the agreement, ServiceNow will offer federal agencies discounts of up to 70% on upgrades to its software. This includes the ITSM Pro and ITSM Pro Plus bundle, which incorporates the ServiceNow AI Platform. The AI Platform is designed to automate workflows and enhance data analysis, providing agencies with advanced tools to streamline operations.

The agreement also includes a 40% discount off the list price on upgrades to a standalone version of ITSM Pro, which supports automation, analytics, and secure intelligence. This version of the software is designed to help agencies modernize legacy IT systems and improve service delivery.

The OneGov agreement aligns with the White House's America's AI Action Plan and President Trump's Executive Order on procurement consolidation. It is part of the GSA's OneGov Strategy, which aims to deliver faster modernization, stronger collaboration, and significant cost savings for taxpayers.

ServiceNow Chairman and CEO Bill McDermott highlighted the company's role in the federal government's digital transformation, stating that ServiceNow's AI platform will serve as the "AI control tower" for the federal government. He emphasized that the company's software acts as connective tissue, providing real-time visibility across the enterprise.

The agreement is part of a broader trend of government agencies adopting AI technologies to improve efficiency and service delivery. In the past 12 months, federal contract data shows that 415 government contract awards have referenced ServiceNow, indicating a growing demand for the company's AI capabilities.

The OneGov agreement is the latest in a series of deals brokered by the GSA with tech companies, which have collectively resulted in several billion dollars in estimated savings for taxpayers. The agreement underscores the GSA's commitment to driving efficiency and innovation in the federal government.

References:
[1] https://www.marketscreener.com/news/u-s-general-services-administration-and-servicenow-strike-onegov-deal-to-accelerate-ai-driven-gover-ce7d59dbdb8df324
[2] https://www.nextgov.com/acquisition/2025/09/servicenow-gsa-strike-onegov-deal-drive-government-ai-adoption/407844/?oref=ng-homepage-river
[3] https://www.stocktitan.net/news/NOW/gsa-and-service-now-strike-landmark-one-gov-deal-to-accelerate-ai-ojjyfob1ww9n.html