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Why ServiceNow built a startup inside itself to take on AI-native rivals

For two years, ServiceNow’s challengers have built businesses around frustrations with its software. Their pitch centers on two complaints: Implementations take too long, and employees increasingly expect help inside tools they already use rather than through a separate portal. The IT service management startup Serval, which says it intends to replace ServiceNow, rode that argument to a $1…

Why ServiceNow built a startup inside itself to take on AI-native rivals

ServiceNow, an IT service management startup, is addressing customer complaints about its own software by creating a new product called Flow. The rival businesses have criticized ServiceNow for long implementation times and for offering a separate portal for employee assistance. In response, ServiceNow is launching Flow, a conversational AI service desk that operates within popular messaging platforms like Slack and Microsoft Teams.

This allows employees to request help in plain language, and ServiceNow's AI can handle the request or escalate it if necessary.

Flow aims to give small and medium-sized businesses the power of enterprise AI without the complexity of a full implementation. It can be set up within a day without any implementation projects, CMDB migrations, or infrastructure requirements. ServiceNow believes its experience in handling enterprise workflows will differentiate Flow from competitors.

ServiceNow's new product is a reaction to requests from leaner IT teams that want automation capabilities without a full-scale implementation. The company assembled a small team with experience in IT service management and AI development tools to build Flow in just three months. The team was given a founder-like mandate to rethink the go-to-market and product delivery approach.

ServiceNow argues that competitors lack the domain knowledge and expertise that their AI products require. While AI has made it easier to write code, understanding what to ask the system to write and whether it makes sense still requires human understanding. Flow's conversational AI service desk can meet employees in the same channel they already use, such as Slack or Microsoft Teams, but ServiceNow does not control these channels or their commercial terms.

Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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