ServiceNow and UKG join forces to revolutionize employee experience with AI

This partnership underscores a people-first approach, with Bill McDermott, CEO of ServiceNow, highlighting AI’s transformative potential for businesses, while Jennifer Morgan, CEO of UKG, stressed how it will enable employees to prioritize strategic tasks over routine functions

ServiceNow and UKG have teamed up to revolutionize workplace productivity by integrating artificial intelligence (AI) into essential employee operations, including HR, payroll, and workforce management. This partnership, revealed at ServiceNow’s Knowledge 2025 event, combines UKG’s advanced AI solutions with ServiceNow’s AI Agent Fabric, a cutting-edge platform designed to simplify and modernize digital experiences for employees.

The collaboration aims to significantly boost productivity, with early projections suggesting potential efficiency improvements ranging from 15% to 50%, with even higher gains for more complex tasks. ServiceNow’s solid financial footing, evidenced by its $11.47 billion revenue for the past 12 months, positions the company to lead this AI-driven initiative. Furthermore, InvestingPro highlights ServiceNow’s industry-leading gross profit margins, which stand at an impressive 79%, underlining its operational success.

This partnership reflects a shared commitment to a people-first approach. Bill McDermott, CEO of ServiceNow, emphasized AI’s game-changing potential for businesses, while Jennifer Morgan, CEO of UKG, noted that the initiative would allow employees to focus more on strategic tasks, rather than routine operational functions. Key features of the partnership include the use of AI agents to streamline processes such as employee onboarding, time-off requests, and payroll inquiries, all while ensuring a seamless experience for users.

Revolutionizing workforce operations with AI

The partnership is also designed to address the specific needs of frontline workers in industries such as retail, healthcare, and manufacturing. By leveraging data patterns and historical information, the AI agents will optimize scheduling, time management, and overall business agility.

Josh Bersin, founder and CEO of The Josh Bersin Company, praised the collaboration, pointing out its ability to offer businesses a unified approach to deploying AI for both operational improvements and sustainable growth. He emphasized that the partnership would likely set a new standard for workplace efficiency.

In addition to the AI-powered workplace tools, ServiceNow used the Knowledge 2025 event to unveil several new initiatives, including an AI-driven Customer Relationship Management (CRM) system. The CRM has already seen a 30% year-over-year growth, with an annual contract value of $1.4 billion. ServiceNow also launched the AI Control Tower and AI Agent Fabric tools, which are designed to optimize AI investments and improve enterprise-wide AI management.

Transforming decision-making with AI solutions

ServiceNow’s partnership with NVIDIA introduced the Apriel Nemotron 15B reasoning model, which aims to enhance decision-making and workflow automation. ServiceNow’s growing portfolio of AI solutions is being adopted by industry leaders like Adobe and Visa, further demonstrating its ability to transform business operations with cutting-edge technology.