ServiceNow expands its AI capabilities with the acquisition of Moveworks, adding 500 employees and enhancing enterprise-wide AI adoption for major companies.

ServiceNow said on Monday it would buy AI firm Moveworks for $2.85 billion in cash and stock, marking the software maker's largest-ever acquisition when enterprises are spending heavily on the technology to enhance their IT operations.

Stock in ServiceNow fell after the automation-software company agreed to buy Moveworks, an artificial-intelligence start-up, for $2.85 billion, signaling that the race to build autonomous AI is demanding more investment.