ServiceNow unveils Otto & expands AI Control Tower

ServiceNow has introduced a new AI product, ServiceNow Otto, and expanded its AI Control Tower platform as part of its latest approach to managing autonomous work across enterprise systems.

It is also opening its Action Fabric and generally available Model Context Protocol Server to third-party agents, including those built with Claude and Copilot. In addition, it outlined new AI specialists for customer service, employee experience, IT operations, and security and risk.

The updates reflect a broader effort to position ServiceNow's software as a central layer for businesses managing growing numbers of AI tools, models, and workflows across different clouds and data sources. Many enterprises, it argued, have added AI functions to multiple applications without consistent governance or a clear link to operating results.

Otto is designed as a single interface combining conversational AI, enterprise search, and workflow automation. It is intended to complete tasks across systems and desktops rather than act only as a chatbot or search layer.

Action Fabric and the MCP Server are meant to let AI agents outside the ServiceNow environment trigger actions through the company's workflow system. That would allow customers to connect third-party or internally developed agents to ServiceNow processes while keeping oversight inside the platform.

Control and oversight

ServiceNow also expanded AI Control Tower, describing it as a governance layer for AI systems, models, datasets, assets, and identities. The product now covers more than 30 enterprise integrations and includes observability into agent behaviour, risk and compliance controls, and identity governance extended to large cloud environments and AI models.

The governance push is tied to broader security products built around asset visibility, identity intelligence, risk management, and remediation. Integrations with Armis and Veza add visibility over connected assets and permissions across human, machine, and AI agent identities.

Bill McDermott, chairman and chief executive officer, framed the launch as a move beyond workflow software toward a broader role in AI management. “Knowledge 2026 is where the world comes to witness the next frontier of innovation: the Autonomous Platform where AI thinks and workflows act,” said McDermott.

“This is the moment ServiceNow moves beyond the platform of platforms to become the AI agent of agents - connecting any model, any cloud, and any data source. We've built the only platform that can sense across the enterprise, decide the right action, act across any workflow or application, and secure every step. We are the rules and rails of business,” he said.

ServiceNow said its platform processes more than 100 billion workflows and more than 7 trillion transactions a year. It argued that this operating data gives its AI products enterprise context, including information on assets, policies, ownership, and operational state.

Customer examples

ServiceNow pointed to several customer deployments to show how the products are being used. Honeywell said its AI assistant, Red, has reduced service desk demand, while the National Hockey League said it is using the platform to connect operations across its clubs and fixtures.

Honeywell described the effect on internal support work in direct terms. “At Honeywell, we're connecting the world by addressing critical challenges across the industrial, process, and building sectors and that mission-critical work demands AI that delivers value fast,” said Sheila Jordan, senior vice president and chief digital technology officer at Honeywell.

“With ServiceNow and Moveworks, our AI assistant 'Red' eliminated the majority of service desk conversations, saving time for employees and our IT organization. By operating an AI-enabled workforce at enterprise scale, we're unlocking new levels of efficiency and accelerating business transformation,” she said.

The NHL said it is using the system across 32 clubs and more than 1,300 games a season. “At the NHL, working smarter has always been the goal so we can stay focused on delivering extraordinary fan experiences,” said John Frantzeskakis, senior vice president of technology, operations and digital transformation at the National Hockey League.

“The ServiceNow AI platform gives us the AI control tower we need to scale AI with confidence, transforming fragmented operations across 32 clubs and 1,300-plus games a season into connected, intelligent workflows. We're already seeing real productivity gains, and we've only scratched the surface of what AI can do for us,” he said.

PayPal, which said it handles more than USD $1 trillion in annual payment volume, said it has used ServiceNow for case management, cloud discovery, security operations, and AI assistance. Database tasks now run twice as fast, and its longest-running operations are five times faster.

“This wasn't simply a database migration; it was a foundational step in enabling confident, performance-oriented scale and winning back the trust and investment of our business partners. As a company that moves more than a trillion dollars in payment volume annually, the ServiceNow AI Platform must be as fast and resilient as the business itself,” said Matthew Kritzer, principal platform architect at PayPal.

“Today, we're running Case Management, Cloud Discovery, SecOps, and Now Assist at a scale we once only imagined. Database tasks are twice as fast, and our longest-running operations are five times faster. ServiceNow has become a key part of our enterprise AI and automation strategy,” he said.

Growth target

ServiceNow also set out a financial goal tied to AI adoption. It expects AI to account for more than 30% of annual contract value by 2030 as it works toward more than USD $30 billion in subscription revenue.

Amit Zavery, president, chief operating officer, and chief product officer, said the latest version of AI Control Tower is intended to govern a wider set of enterprise AI components. “A year ago, AI Control Tower gave enterprises visibility into their AI. Today it governs the entire AI lifecycle across every agent, model, dataset, asset, and identity, across every cloud and enterprise system,” said Zavery.

“This is the infrastructure enterprises need to scale AI with confidence, and only ServiceNow has the workflows, context, and enterprise depth to deliver it,” he said.