ServiceNow extends AI governance to Microsoft Agent 365 platform

LAS VEGAS - ServiceNow (NYSE:NOW) announced an expansion of its partnership with Microsoft to integrate its AI Control Tower governance capabilities with Microsoft Agent 365, according to a press release statement issued today at Knowledge 2026. The $93.7 billion software company has seen its stock decline 48% over the past six months, though InvestingPro analysis suggests the shares are currently undervalued, placing it among companies on the platform’s Most Undervalued list.

The integration extends ServiceNow AI Control Tower’s existing governance across Azure-backed Microsoft Foundry and Copilot Studio to Microsoft Agent 365’s AI agent ecosystem. ServiceNow AI specialists will be available in the Microsoft Agent 365 Marketplace, allowing the company’s Autonomous Workforce to operate across Microsoft 365 tools.

The AI Control Tower integration with Microsoft Agent 365 provides IT and operations teams with visibility into agent activity across ServiceNow and Microsoft ecosystems. Administrators can review and approve ServiceNow AI specialists before submission to the Microsoft Agent 365 Marketplace, where Microsoft publishing and policy controls apply.

"ServiceNow and Microsoft are helping organizations maximize value from every AI investment," said Jon Sigler, executive vice president and general manager, AI Platform at ServiceNow. "With this expanded integration, customers can securely apply governance across ServiceNow and Microsoft environments with integrated visibility and controls."The partnership comes as ServiceNow maintains strong fundamentals, with revenue growing 22% to $14 billion over the last twelve months and gross profit margins of 77%. InvestingPro identifies the company as a prominent player in the Software industry, with comprehensive analysis available in its Pro Research Report—one of 1,400+ US equities covered with expert insights and actionable intelligence.

Charles Lamanna, executive vice president, Copilot, Agents, and Platform at Microsoft, said the collaboration brings ServiceNow’s AI expertise into Microsoft 365 to add workflow intelligence.

In the Microsoft Agent 365 Marketplace, ServiceNow AI specialists will appear in the org chart as digital employees with defined roles, permissions, and accountability. The specialists can draft Word documents, respond to email messages in Outlook, or act on assigned comments in PowerPoint, subject to Microsoft 365 permissions and admin policy controls.

The AI Control Tower and Microsoft Agent 365 integration is available in preview. ServiceNow AI specialists will be available in Microsoft Agent 365 Marketplace later this year.

In other recent news, Cloudera announced the release of a Workflow Data Fabric Zero Copy Connector for the ServiceNow platform, allowing enterprises to execute AI tasks without duplicating data. This development was unveiled at the Knowledge26 conference and aims to streamline data processes by eliminating the need for data movement, while maintaining security and governance standards. Meanwhile, ServiceNow received positive attention from several analyst firms. Benchmark reiterated a Buy rating with a $125 price target, highlighting the company’s focus on sustainable revenue growth through AI adoption and other strategic initiatives. TD Cowen also maintained a Buy rating, setting a $140 price target, and noted the company’s ambitious fiscal 2030 targets, which include a 20% subscription revenue growth rate. Piper Sandler echoed this sentiment with an Overweight rating and a $140 price target, emphasizing ServiceNow’s role as a key orchestration platform for enterprise AI. Lastly, Truist Securities reiterated a Buy rating with a $120 price target, citing ServiceNow’s strategy to leverage AI and consumption to drive growth.

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