Eight ex-ServiceNow salespeople have been poached by upstart rival Serval as companies race to compete in the AI boom

In a notable shift within the tech industry, eight sales professionals from ServiceNow, alongside its newly acquired subsidiary Moveworks, have recently joined the rival startup Serval. This move comes in the wake of ServiceNow's stock plummeting by 40% over the past six months, a trend attributed to investors' fears that the rise of AI could severely impact the profit margins of established software companies. To maintain its competitive edge in the rapidly evolving AI landscape, ServiceNow made a significant investment by acquiring Moveworks for $2.85 billion in December. This acquisition was aimed at developing an 'AI-native front door' to enhance its services. Meanwhile, Serval has also been making headlines, having secured $75 million in a Series B funding round led by Sequoia Capital, which has propelled its valuation to $1 billion. This influx of investment highlights the growing interest in AI-driven IT support solutions and reflects Sequoia's historical backing of ServiceNow. While the eight departing employees represent only a small fraction of ServiceNow's 29,000-strong workforce, their departure underscores the challenges that established tech firms face in retaining talent as newer, well-funded AI companies emerge. Among those making the switch is Brad Patterson, who served as a sales VP at ServiceNow for nearly two years. In a recent interview, he remarked on the transformative impact of AI on the market, suggesting that such shifts are influencing employee decisions across the industry. According to Jules Levy, a former high-ranking executive at ServiceNow who is now part of Serval, the trend of talent migration is not isolated to ServiceNow. He noted that many professionals from established companies are eager to join AI-native platforms that can quickly adapt and capitalize on this technological revolution. Serval's COO, Tatiana Birgisson, emphasized that while the startup is not specifically targeting ServiceNow employees, the departure of key individuals often creates a domino effect, attracting others from their professional networks. She highlighted the case of Chris Comes, who became Serval's VP of Sales after a significant tenure at Moveworks, noting that his move generated considerable excitement and interest among potential recruits. Traditionally, startups have struggled to compete with the job security and compensation offered by larger tech firms. However, recent layoffs in major companies have shifted this narrative. Notably, Block CEO Jack Dorsey announced a 40% workforce reduction earlier this year, citing the rise of AI, and Meta is reportedly considering laying off a fifth of its staff due to soaring AI-related costs. Birgisson pointed out that the perception of job security in big tech is changing, leading more candidates—who once would have dismissed startup opportunities—to be open to exploring positions in these agile and innovative environments.