ServiceNow’s ambitious plan to acquire AI-powered employee support startup Moveworks has hit a regulatory roadblock as the U.S. Department of Justice (DOJ) launches an antitrust review of the proposed deal. The move reflects increasing government scrutiny of consolidation in the artificial intelligence (AI) and enterprise software sectors.
The Deal at a Glance
Announced earlier this year, ServiceNow’s acquisition of Moveworks is seen as a strategic step to strengthen its AI capabilities, particularly in workplace automation and employee service platforms. Moveworks is known for its cutting-edge natural language processing (NLP) and conversational AI technology, used by companies like LinkedIn, DocuSign, and Broadcom to streamline internal IT and HR support.
ServiceNow, already a leader in digital workflows and enterprise automation, aims to integrate Moveworks’ AI tools to enhance its Now Platform — particularly in areas like employee experience, self-service, and generative AI workflows.
DOJ’s Growing Focus on AI Acquisitions
The DOJ’s antitrust division is reportedly assessing whether the acquisition could limit competition in the enterprise AI sector, particularly in the fast-growing market for AI-driven helpdesk and internal support tools. Regulators are concerned that if major platforms like ServiceNow absorb innovative AI startups, it could reduce diversity of choice and stifle future innovation.
This move is part of a broader trend where U.S. regulators are paying closer attention to AI-driven mergers, echoing similar investigations into acquisitions by tech giants like Microsoft, Amazon, and Google.
What’s at Stake
If the deal goes through, ServiceNow could gain a significant advantage in the race to offer AI-native enterprise platforms. However, a prolonged DOJ review could delay or even derail the acquisition, forcing both companies to reconsider deal terms or provide concessions.
For Moveworks, the deal represents a chance to scale its AI innovations across a much broader customer base, leveraging ServiceNow’s infrastructure and global reach. But the antitrust probe introduces uncertainty around timelines and integration plans.
Industry Implications
This review could set a precedent for future AI mergers, signaling that even relatively smaller acquisitions in the AI space will now attract regulatory attention. It also underscores how AI is becoming central to competitive dynamics in enterprise software, and why regulators want to ensure a level playing field as the industry evolves.
Final Thoughts
As ServiceNow awaits the DOJ’s verdict, the tech industry is closely watching how regulators handle AI-related acquisitions in the enterprise landscape. The outcome could shape not only the future of this deal, but also how emerging AI startups and large platforms collaborate or consolidate in the years ahead.
