ServiceNow Stocks Surge as $2.85 Billion Moveworks Acquisition Fuels AI Ambitions

ServiceNow Inc (NOW) recently announced its acquisition deal with Moveworks for $2.85 billion, aiming to bolster its AI and enterprise search capabilities. This strategic move aligns with ServiceNow’s ambition to lead in agentic AI-driven business transformation. By acquiring Moveworks, ServiceNow seeks to enhance its platform with a universal AI assistant and more perceptive AI-based enterprise search, facilitating enterprise adoption and innovation.

The acquisition will combine ServiceNow’s strengths in agentic AI and automation with Moveworks’ advanced AI assistant and enterprise search technology. According to Amit Zavery of ServiceNow, this merger marks a significant step in empowering employees through AI, promising to accelerate enterprise-wide AI adoption and innovation.

Moveworks, founded in 2016, provides AI solutions that help companies manage employee requests. Their client list includes notable names like Unilever and Broadcom, showcasing their technology’s effectiveness. Previous investors in Moveworks include Kleiner Perkins and Bain Capital Ventures, demonstrating substantial backing for its AI capabilities.

Led by CEO Bill McDermott, ServiceNow has been pushing forward with integrating generative AI into its products, as part of its strategic focus on enhancing automation across business operations. Under McDermott’s leadership, the company has targeted growth through innovation rather than short-term revenue gains from these AI tools.

The acquisition, set to close in the second half of 2025, reflects not only on ServiceNow’s commitment to AI and automation technologies but also on its broader strategy to transform enterprise IT operations through advanced AI capabilities. While broader market trends and economic concerns may impact stock performance, this acquisition signals a significant shift in ServiceNow’s approach towards AI-driven products. Moveworks offers ServiceNow the potential to redefine customer interaction and internal processes with enhanced AI capability, setting new benchmarks in enterprise technology solutions.