What’s Behind ServiceNow and UKG’s AI Partnership?

ServiceNow has announced its partnership with UKG, which aims to improve workplace efficiency by using AI agents to simplify and automate HR, payroll, and workforce management tasks. The partnership was announced at the Knowledge 2025 event. It brings together ServiceNow’s newly launched AI Agent Fabric and UKG’s AI-powered People Fabric to deliver more streamlined and responsive employee experiences.

The partnership is designed to cut down on repetitive tasks and help businesses improve their everyday and complex workforce operations. If we go by the early research from The Josh Bersin Company, AI focused on existing job functions can boost productivity by 15% to 50%, and that number can jump to over 300% when AI agents handle multi-step tasks.

ServiceNow and UKG put people at the heart of every innovation, to create breakthrough experiences in a new era of human-AI collaboration. AI is transforming how businesses operate, adapt faster to change, and deliver value. Together, we’re making sure that every employee, every customer, every company can put AI to work for people.

Bill McDermott, chairman and CEO of ServiceNow

AI Agents Handling Everyday Workflows 

According to the shared press release, this partnership will create AI-backed workflows for tasks like onboarding, internal transfers, or time-off requests. As a result, instead of navigating multiple systems, employees will get a single interface powered by AI agents from both companies, working behind the scenes to complete tasks.

For example, AI agents will help modernize payroll systems by offering real-time responses to employee questions and automating updates in line with tax laws and labor regulations. In industries like retail and manufacturing, the agents can also manage scheduling, absence tracking, and demand forecasting, even accounting for disruptions like supply chain issues. 

Focus on Frontline and Cross-Industry Use Cases 

Normally, when it comes to technologies like AI agents, most companies focus on helping employees who are working from the office. But this partnership aims to support workers beyond just the office, especially those on the front lines. By enabling smarter scheduling and absence management, the combined AI systems aim to give managers and employees more control and visibility without adding administrative burdens.

ServiceNow and UKG each have deep experience building transformative solutions that drive employee outcomes. This level of strategic partnership, developing agent-to-agent orchestration, gives organizations of all sizes a seamless and integrated way to deploy and leverage AI for scale, employee productivity, and growth.

Josh Bersin, founder and CEO at The Josh Bersin Company

What Does This Mean? 

This is not the first time we are seeing that one company is collaborating with another to implement AI tech in its organization. Recently, we have seen that Vodafone Business and ServiceNow have partnered in a five‑year strategic collaboration to launch an AI‑powered service management solution. So now, the partnership between ServiceNow and UKG signals that AI in the workplace is shifting from experimental to practical. 

By embedding AI agents into everyday tools and workflows, both companies aim to help businesses operate more smoothly while giving employees time back for higher-value tasks.