ServiceNow's workflow software may become more valuable, not less, as companies deploy AI agents—because those systems still need centralized management and governance.

What happened: ServiceNow reported that AI-related products such as Now Assist continued to gain traction, with Now Assist's net new annual contract value more than doubling year over year in the fourth quarter of 2025, and delivered 21% revenue growth in 2025.

Why it matters: Many investors feared AI agents would replace workflow software like ServiceNow's. In reality, AI agents can identify problems and generate solutions, but organizations still need workflows to approve spending, notify suppliers, update systems, and track every action. ServiceNow positions itself as the platform to manage both human employees and AI systems from a single place—what management calls an 'AI Control Tower.'

What to watch: The company faces real competition from new AI-native start-ups and existing enterprise software rivals, and some investors believe future AI agents could automate far more of companies' workflows than expected. However, ServiceNow starts from a position of strength because its software is deeply embedded in many of the world's largest organizations.