Washington, March 5, 2026, 18:33 EST
- ServiceNow has launched EmployeeWorks and a new “Autonomous Workforce” suite, targeting customers in the public sector.
- The company has its first Level 1 IT service desk AI specialist in controlled availability right now. Wider rollout is slated for Q2.
- Shares jumped roughly 5.8% following the announcement. Still, investors remain uneasy about what AI could mean for software profit margins.
ServiceNow (NYSE: NOW) rolled out EmployeeWorks along with its new Autonomous Workforce suite for public sector clients on Thursday, touting both as “trusted AI” tailored for government use. Shares climbed roughly 5.8% to $120.38 after hours. MarketScreener
Timing here is deliberate. Agencies want generative AI to turbocharge HR, procurement, and service desks, but the tech is still propped up by legacy systems and strict security protocols. Vendors push the words “trusted” and “governed”—they know contracts hinge on that.
The launch is landing as U.S. software stocks continue to slide—S&P 500 software names are off 28% from late October, with investors nervous about AI agents threatening the old subscription model. ServiceNow has turned to buybacks, tacking on another $5 billion to the $1.4 billion still authorized, and rolling out a $2 billion accelerated repurchase through a bank. But Morgan Stanley Investment Management’s Andrew Slimmon called the post-selloff buybacks “an attempt to stop the decline,” while Peter Tuz of Chase Investment Counsel was blunt: “I don’t think the buybacks are enough.” Reuters
ServiceNow, during its Government Forum in Washington, unveiled EmployeeWorks—a blend of Moveworks’ conversational AI, enterprise search, and the Employee Center portal. The system translates natural-language queries into controlled actions that span agency systems. The company also rolled out Autonomous Workforce, bringing a lineup of AI “specialists” to help execute tasks within ServiceNow’s Government Community Cloud and National Security Cloud. “AI that actually works” is what agencies want, chief customer officer Chris Bedi said. U.S. Public Sector group VP Mike Hurt added, workers ought to get answers “without workarounds, without switching tools.” ServiceNow Newsroom
ServiceNow unveiled its first out-of-the-box specialist: a Level 1 IT service desk AI designed to handle routine jobs like password resets and network troubleshooting. The company said the AI can run in both FedRAMP High and Defense Department IL4 and IL5 settings. FedRAMP, the federal government’s security clearance for cloud services, currently lists ServiceNow as authorized at the High tier, while Moveworks holds Moderate status. Mark Wittenburg, chief information officer for the City of Raleigh, said their virtual agent has “saved the equivalent of a full month of time” and hit a “98% deflection rate”—requests resolved without staff intervention.
Just a day before, CEO Bill McDermott worked to reassure investors, framing the company’s AI pivot as an addition rather than a threat. “While AI thinks, workflow acts,” he said. McDermott added that ServiceNow’s platform isn’t limited to its own stack—it can layer over competitors’ agents, including those from Salesforce and Workday, integrating them into broader business processes instead of leaving them as standalone solutions. Investing
The risks stand out. Government buying cycles often stretch on, and some agencies hesitate to use software that acts autonomously on critical systems—even with audit logs in place. Then there’s “controlled availability”: it’s only a partial launch. If a pilot goes poorly or a security issue crops up, adoption can hit a wall.
Back in January, ServiceNow set its annual subscription revenue forecast ahead of what Wall Street had penciled in, Reuters noted, highlighting increased appetite for its AI-driven offerings. The company was doubling down on generative AI, ramping up integrations with Anthropic and OpenAI to weave the technology deeper into its platform.
Moveworks, the conversational AI shop soon to be part of EmployeeWorks, marked the largest acquisition in ServiceNow’s history after the company struck a $2.85 billion cash-and-stock deal in 2025.
