ServiceNow spins up internal AI project amid AI-native competition

ServiceNow appears to be testing a new approach to fend off AI-native rivals, with Fast Company reporting the launch of Flow, an internal project building a conversational AI service desk. According to the report, CEO Bill McDermott described the effort as an attempt to compete on speed and ease of deployment—areas where AI-native startups have gained traction.

This move follows ServiceNow’s recent efforts to position itself as a governance layer for enterprise AI. Over the past month, the company has repeatedly framed itself as a potential “control tower” for AI agents, arguing that containment could become a key factor in enterprise adoption. That messaging has coincided with funding rounds for AI-native startups like Comp AI and Cylake, which are targeting similar compliance and security use cases but with AI as their foundation.

The reported structure of Flow suggests ServiceNow may be exploring ways to accelerate development, though details remain limited. AI-native startups often operate with fewer legacy constraints, allowing them to iterate quickly—a dynamic that could pressure incumbents to adapt. If Flow succeeds, it might signal a shift in how large enterprise software companies approach innovation, though it’s unclear whether such internal projects can replicate the agility of independent startups.

The challenge for ServiceNow, if the reports are accurate, will be balancing its traditional enterprise sales model with the demands of AI-native buyers, who may prioritize different metrics. For now, Flow’s scope and autonomy remain unspecified, leaving open questions about its long-term role within the company. Still, the initiative hints at how legacy players might respond to the rise of AI-native competition—whether through internal experimentation or other strategies.

Sources: fastcompany.com