ServiceNow offers federal government steep discounts to boost AI adoption

ServiceNow Inc. (NYSE:NOW) is providing U.S. federal agencies with discounts of up to 70% on its software as part of an initiative to accelerate the integration of artificial intelligence into government operations.

The U.S. General Services Administration (GSA) announced a OneGov agreement with ServiceNow aimed at modernizing federal agencies with an AI-first approach. Analysts project that the ServiceNow AI Platform could increase workflow efficiency by as much as 30% by optimizing key business processes.

Under the deal, agencies can purchase ServiceNow products at pre-negotiated discounted rates through September 2028. Specifically, upgrades to a new ITSM Pro and ITSM Pro Plus bundle are available at a 70% discount off list prices, while standalone ITSM Pro upgrades are offered at a 40% discount through September 2026.

“The Trump Administration is committed to leveraging the power of AI to transform government operations and enhance citizen services, ensuring we operate with efficiency and agility, while leveraging innovative technology,” said GSA Acting Administrator Michael Rigas.

Bill McDermott, ServiceNow Chairman and CEO, added: “When President Trump says the federal government needs to operate like a best-run business, he means it. ServiceNow’s role as the AI control tower for this transformation has never been more relevant.”

The agreement also covers FedRAMP High (IL4) and National Security Cloud (IL5) environments. The ITSM Pro and Pro Plus bundle includes ServiceNow’s AI Platform with a unified architecture designed for intelligent automation across government departments, along with thousands of ready-to-use AI agents to improve incident resolution times and accelerate approval processes.

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