AI-Powered Process Automation Market Projected to Explode: Why ServiceNow Could Lead the Surge

The Multi-Billion Dollar Opportunity Ahead

The robotic process automation sector is entering a transformative phase. Grand View Research forecasts the global RPA market will expand at a 43.9% compounded annual growth rate through 2030, reaching a projected valuation of $30.85 billion—representing a staggering 466% increase from 2026 levels. This explosive trajectory reflects growing enterprise demand for intelligent systems that streamline operations without human intervention.

As process automation becomes central to corporate efficiency, companies leveraging advanced conversational AI and autonomous workflows are positioned to capture significant market share. The convergence of generative AI with RPA technology creates new possibilities for handling complex tasks previously requiring human judgment.

ServiceNow’s Market Position in the RPA Revolution

Among the players positioned to benefit from this growth wave, ServiceNow (NYSE: NOW) stands out due to its established market presence and technological capabilities. The company supplies enterprise clients with GenAI-enhanced chatbots and workflow automation solutions designed to tackle routine operations and streamline customer interactions at scale.

Unlike conventional chatbots that rely on scripted responses, ServiceNow’s AI-driven systems continuously learn from interactions, accessing expanding knowledge databases without requiring manual updates. This adaptive capability makes them increasingly valuable as enterprises seek to boost productivity across departments.

A Business Model Built for Resilience

ServiceNow’s financial structure underscores operational stability. The company generated $3.4 billion in Q3 2025 revenue—a 22% year-over-year increase—with subscription services accounting for $3.3 billion or 97% of total revenue. This recurring revenue model provides predictable cash flows and reduces vulnerability to market fluctuations.

Customer retention metrics are particularly impressive. ServiceNow maintains a 97% renewal rate among its nearly 8,400 enterprise clients (98% excluding a departed U.S. federal agency). This stickiness reflects high switching costs and deep platform integration—customers remain locked in because extraction is economically unfeasible.

Enterprise Scale and Deal Momentum

ServiceNow’s customer roster includes roughly 85% of the Fortune 500, demonstrating credibility with top-tier organizations. This positioning provided crucial stability when a major federal customer departed, allowing the company to absorb the impact through its diversified base.

Recent dealmaking activity reinforces growth momentum. In Q3 2025, ServiceNow closed 103 transactions exceeding $1 million in new annual contract value. More significantly, the company ended the quarter with 553 customer contracts valued at over $5 million in ACV—an 18% year-over-year jump. These metrics indicate robust demand and expanding deal sizes.

Acquisition Strategy Raises Questions

However, ServiceNow’s growth strategy has drawn scrutiny. The company’s $7.75 billion acquisition of cybersecurity firm Armis sparked investor concern about strategic fit and capital allocation. Some analysts question whether cybersecurity capabilities meaningfully align with AI-powered chatbot and process automation offerings.

This acquisition follows the earlier purchase of Moveworks, forming a pattern of using external deals to fuel expansion. While acquisitions can unlock long-term synergies, they also raise concerns about whether underlying business momentum is sufficient.

Growth Deceleration and Future Outlook

ServiceNow’s 22% revenue growth in Q3, while solid, reflects a slowdown from historical rates. Net income growth of only 16% year-over-year suggests potential margin pressure. These dynamics add weight to concerns that acquisitions increasingly substitute for organic acceleration.

Despite these headwinds, the structural tailwinds of RPA adoption remain compelling. Enterprises continue investing in process automation and AI-powered tools to enhance efficiency. If ServiceNow’s acquisitions translate into tangible revenue acceleration and the company restores organic growth rates, current valuations could prove attractive.

The long-term expansion of the process automation market suggests companies with established customer relationships and proven technology platforms—like ServiceNow—should gain ground. Whether recent strategic investments accelerate returns or further dilute margins remains the key variable for investors evaluating entry points.