ServiceNow announced a new suite of AI integrations with Microsoft on November 18, 2025 that extends its AI Control Tower into Microsoft’s cloud services. The partnership introduces Microsoft Agent 365, a platform that lets ServiceNow’s AI agents orchestrate workflows across Microsoft 365, Microsoft Foundry, and Copilot Studio, giving customers a single pane of glass to manage AI agents, enforce policies, and monitor compliance.
The integrations are slated for general availability by the end of 2025, with the Now Assist component—an AI assistant that can summarize Word documents, draft Outlook replies, and trigger secure Teams workflows—expected to launch in Q1 2025. ServiceNow’s AI platform will embed agents directly into Word, Outlook, and Teams, enabling users to summon AI teammates that operate under the same identity, data permissions, and audit controls that customers already trust.
Strategically, the deal positions ServiceNow as the AI operating system for the agentic enterprise by deepening its reach into Microsoft’s 300‑million‑user ecosystem. The partnership is projected to unlock new revenue streams by offering AI‑powered automation to Microsoft 365 customers, many of whom are already using ServiceNow for IT service management. The integration also strengthens ServiceNow’s competitive edge by providing a unified governance layer that rivals other workflow platforms, such as UiPath and Automation Anywhere, which lack the same level of native Microsoft integration.
Investors reacted with caution, and ServiceNow’s shares slipped nearly 2% after the announcement. Analysts cited the company’s focus on long‑term monetization of the new AI features as a headwind, noting that the partnership’s revenue impact will materialize only once the integrations reach full scale and customers begin to adopt the new AI workflows.
Jon Sigler, Executive Vice President and General Manager of ServiceNow’s AI Platform, said the partnership “enables a new era of autonomous workflows where the power of AI is multiplied using deterministic workflows—putting AI to work for people in the most demanding global enterprises.” Nirav Shah, Corporate Vice President of Microsoft Agent 365, added that the integration “provides a simple, secure way to bring agents under control, extending the same infrastructure, apps, and protections they already trust for users.”
The collaboration underscores ServiceNow’s broader strategy to become the central hub for AI orchestration across multiple vendors. By embedding its platform into Microsoft’s productivity suite, ServiceNow can accelerate adoption of its AI services while leveraging Microsoft’s vast customer base, positioning the company for sustained growth in the rapidly expanding AI‑enabled enterprise software market.
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