ServiceNow to offer up to 70% discount on software to federal agencies in AI push

[ServiceNow headquarters in Santa Clara, California, USA]
JHVEPhoto/iStock Editorial via Getty Images

ServiceNow (NYSE:NOW [https://seekingalpha.com/symbol/NOW]) is offering federal agencies discounts of up to 70% on upgrades to its software.

The U.S. General Services Administration, or GSA, signed a OneGov agreement [https://seekingalpha.com/pr/20219734-gsa-and-servicenow-strike-landmark-onegov-deal-to-accelerate-ai-driven-government] with ServiceNow to power AI-first modernization for federal agencies.

The ServiceNow AI Platform could boost workflow efficiencies by up to 30% based on projections — using AI to streamline several business processes, the two parties noted in a press release on Wednesday.

Eligible federal customers can avail the Information Technology Service Management (ITSM) Pro and ITSM Pro Plus bundle upgrade at a discount of up to 70% through September 2028.

ServiceNow is also offering a 40% discount off the list price on upgrades to a standalone version of ITSM Pro, providing flexibility for agencies seeking core IT service management capabilities with intelligent automation features like predictive analytics, process mining, and workforce optimization.

“This agreement is a logical next step in the AI transformation of government and positions us to deliver on the administration’s goals for efficiency, productivity, and the priorities outlined in President Trump’s AI Action plan,” said Federal Acquisition Service Commissioner Josh Gruenbaum.

Last month, the GSA added [https://seekingalpha.com/news/4478493-google-openai-and-anthropics-ai-services-get-us-nod-for-potential-use-in-government-agencies#hasComeFromMpArticle] AI services Claude by Anthropic, Google’s (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) Gemini, and OpenAI’s ChatGPT to its Multiple Award Schedule so it could be offered to federal agencies. Under the agreements [https://seekingalpha.com/news/4484085-anthropic-offering-ai-service-claude-to-us-government-for-1], it would cost less [https://seekingalpha.com/news/4479956-openai-to-provide-chatgpt-enterprise-to-us-federal-agencies-for-1-a-year#hasComeFromMpArticle] than $1 for the first year to use [https://seekingalpha.com/news/4487960-google-usga-sign-deal-to-bring-gemini-cloud-services-to-us-govt] these AI services from these companies.

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