ServiceNow Acquires Veza for Over $1B in AI Security Push
UPDATE: In a landmark move, ServiceNow Inc. has officially acquired identity security startup Veza Inc. for over $1 billion, a significant step in the escalating competition for dominance in artificial intelligence (AI). This acquisition, announced on December 2, 2025, positions ServiceNow to enhance its security capabilities specifically tailored for AI agents—autonomous software increasingly used in enterprise operations.
The timing of this acquisition couldn’t be more critical. As companies race to deploy AI agents for tasks ranging from data analysis to customer service, the security implications of these technologies are profound. ServiceNow aims to solidify its role as a pivotal player in AI-driven business operations by integrating Veza’s advanced identity and access management tools.
Veza, founded in 2020, specializes in what it calls an “Access Graph”, a technology that provides detailed visibility into the access relationships among users, machines, and AI agents. According to sources, including The Information, this deal underscores the growing demand for tools that secure the next wave of AI workflows.
Bill McDermott, ServiceNow’s CEO, emphasizes that this acquisition is not simply an add-on; it represents a strategic integration into their existing platform, which is envisioned as the “AI control tower” for intelligent automation in business.
As enterprises are rapidly adopting AI agents—software capable of executing complex tasks independently—the risks of unregulated access are escalating. With AI agents empowered to approve financial transactions or access sensitive information, the potential consequences of security breaches could be catastrophic. ServiceNow, boasting a market capitalization exceeding $160 billion, believes that Veza’s expertise will help it outpace competitors like Microsoft and Salesforce in this emerging sector.
This acquisition is part of a broader strategy by ServiceNow to enhance its portfolio in AI-specific security. Earlier in March 2025, ServiceNow acquired Moveworks for $2.85 billion, enriching its conversational AI capabilities. Industry experts are now viewing the Veza acquisition as a critical step in ensuring that AI tools do not become security liabilities.
According to BusinessWire, the integration of Veza’s technology will enhance ServiceNow’s security offerings, providing organizations with comprehensive control over access to critical data and AI components. This is notably crucial in sectors such as banking and healthcare, where Veza already serves around 150 enterprise customers.
Analysts highlight that the acquisition aligns with broader industry shifts, aiming to create a unified platform where security is integral, not an afterthought. Recent reports indicate that ServiceNow’s approach to identity and access management will address vulnerabilities that have historically plagued many AI deployments.
The competitive landscape is heating up, as the so-called “agent war” intensifies among tech giants. Microsoft’s integration of AI agents in its Azure and Office suites has been aggressive, while Salesforce focuses on customer relationship management with its Einstein agents. ServiceNow’s workflow-centric approach, however, allows it to manage various business processes, giving it a unique advantage.
Recent insights from Constellation Research suggest that Veza will be integrated directly into ServiceNow’s AI Control Tower, a platform designed to orchestrate AI across business functions. This integration will not only bolster security but also enable enterprises to scale their AI deployments confidently, addressing compliance concerns and ensuring sensitive information remains protected.
Financial analysts are optimistic about this acquisition. Data from Investing.com reflects ServiceNow’s strong fundamentals, with gross profit margins of 78.05% and a robust balance sheet. The company’s revenue growth, reported at 27% year-over-year, underscores its momentum as one of the fastest-growing enterprise software firms, with annual recurring revenues reaching $10 billion.
The Veza acquisition signifies a strategic pivot for businesses looking to deploy AI securely. Many organizations remain hesitant to move beyond pilot phases due to regulatory hurdles like GDPR. With Veza’s tools integrated into ServiceNow, organizations can expect the necessary audit trails and compliance features to confidently accelerate their AI initiatives.
Despite questions surrounding the high price tag for a five-year-old startup, supporters argue that the explosive growth of AI agents justifies the investment. Market research indicates that by 2030, agentic AI could contribute trillions to the global economy if secured properly. ServiceNow’s history of successful integrations suggests confidence in extracting significant value from this acquisition.
Looking ahead, the deal could trigger a wave of similar acquisitions as competitors scramble to strengthen their identity security frameworks in light of the rapid rise of AI agents. For ServiceNow, this move is a calculated bet on leading in an era where AI is not just a tool but a transformative force in business.
While challenges remain in integrating Veza’s technology into ServiceNow’s existing platform, the initial market sentiment is positive. Early indicators from industry analysts suggest that this acquisition will enhance visibility and management of AI agents, filling critical gaps in security.
Ultimately, ServiceNow’s acquisition of Veza is more than a strategic purchase; it is a crucial step toward owning the infrastructure for the AI-powered enterprises of tomorrow. As AI agents evolve into decision-makers, controlling their access will be vital in determining who succeeds in this high-stakes race. ServiceNow is signaling its readiness to lead the way.
