In a significant move aimed at bolstering its artificial intelligence capabilities, ServiceNow Inc. has reached an agreement to acquire Veza Inc., a startup focused on identity security, for over $1 billion. The announcement, made on December 2, 2025, highlights ServiceNow’s ambition to enhance its management of access for AI agents—autonomous software entities that are increasingly taking on complex tasks within enterprise environments. This acquisition comes at a critical juncture as organizations navigate the security challenges surrounding large-scale AI implementation, positioning ServiceNow as a pivotal player in integrating intelligent automation into business operations.
Founded in 2020, Veza has established itself in the field of identity and access management with its “Access Graph,” a technology that delineates the relationships between users, machines, and AI agents. This innovative framework provides granular insights into permissions and potential vulnerabilities, making it a valuable asset in the current landscape of AI-driven workflows. Reports from The Information indicate that the deal values Veza at over $1 billion, reflecting the premium placed on tools capable of securing the next generation of AI workflows. ServiceNow’s leadership views this acquisition as a strategic enhancement rather than merely an addition to its offerings; it is seen as an integral component of what they term the “AI control tower” for business transformation.
The timing of the acquisition aligns with the accelerating adoption of AI agents in enterprises, which face heightened risks related to unregulated access. The potential for an AI agent to manage sensitive tasks—such as approving financial transactions or accessing confidential customer information—underscores the need for stringent security measures. ServiceNow, which boasts a market capitalization exceeding $160 billion, aims to leverage Veza’s expertise to gain a competitive edge against rivals like Microsoft and Salesforce in this increasingly crowded arena.
ServiceNow’s strategic acquisitions are not new, but the focus on AI-specific security sets this deal apart. The company has previously acquired firms to enhance its portfolio, including a $2.85 billion acquisition of Moveworks in March 2025 to bolster its conversational AI capabilities. Industry observers, including venture capitalist Arif Janmohamed, have noted the importance of the Moveworks deal in advancing enterprise AI and streamlining employee interactions. With the acquisition of Veza, ServiceNow is addressing a deeper concern—ensuring that its AI tools do not become security liabilities.
Recent analyses indicate that the integration of Veza will extend ServiceNow’s security offerings, providing comprehensive identity security that enables organizations to manage access to critical data, applications, and AI components. This is particularly significant for sectors like banking and healthcare, where Veza already serves approximately 150 enterprise clients. The AI-native design of Veza’s solutions is tailored to cope with the dynamic nature of agentic AI, which can evolve unpredictably, complicating traditional security measures.
Industry analysts have remarked that this strategic move aligns with broader trends in the sector. ServiceNow aims to create a unified platform where security is ingrained rather than an afterthought. Reports from Security Boulevard highlight how this acquisition strengthens identity and access management—a critical but often vulnerable aspect of AI deployments. The absence of effective controls exposes companies to risks such as data breaches and unauthorized actions by rogue AI agents, incidents that have already emerged as serious concerns in the technology sphere.
Market Context
As the competition intensifies in the realm of enterprise AI, ServiceNow finds itself contending against tech giants that are actively pursuing dominance in this field. Microsoft has been aggressive with its Copilot agents integrated into its Azure and Office suites, while Salesforce’s Einstein agents focus on enhancing customer relationship management. ServiceNow’s distinct advantage lies in its workflow-centric approach, managing an array of functions from IT support to human resources. By incorporating Veza’s tools, the company aims to ensure comprehensive visibility and governance over AI agents, maintaining operational integrity.
Moreover, financial analysts express optimism regarding the acquisition. Data from Investing.com emphasizes ServiceNow’s solid financial standing, citing gross profit margins of 78.05% and a strong balance sheet to support high-value acquisitions. With revenue growth at 27% year-over-year, as indicated in posts by SaaS expert Jason Lemkin, ServiceNow stands out as one of the fastest-growing enterprise software companies, and acquisitions like Veza are a crucial part of this growth strategy.
The complexity of managing AI agents also introduces new challenges in identity management. Veza’s platform offers a solution to the unique problem posed by the ephemeral nature of AI agents—often created dynamically for specific tasks. Traditional identity systems frequently fall short in these scenarios, leading to excessive access permissions that can be exploited by malicious actors. Veza’s unified control framework is becoming essential as the incorporation of AI accelerates across industries.
Despite potential concerns about the substantial price tag for a startup just five years old, proponents argue that the investment is justified given the explosive growth of agentic AI. Market research suggests that by 2030, the economic impact of agentic AI could reach trillions globally, contingent on robust security measures. ServiceNow’s proven track record of successful integrations further supports the belief that they can extract significant value from this acquisition.
Looking ahead, ServiceNow’s acquisition of Veza could foreshadow a series of similar moves within the industry as competitors strive to enhance their own identity security capabilities. For ServiceNow, this strategic risk aims to establish leadership in an era where AI transcends its role as a tool to become a transformative force in the enterprise landscape. As AI agents evolve from assistants to autonomous decision-makers, controlling their access and ensuring their security will be critical in determining the winners in this high-stakes race.
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