Cloud computing platform designer ServiceNow ( NOW ) shares are trading higher on Friday. The company announced an agreement to acquire Cuein, a firm focused on AI-based conversation data analysis.

Belmont, California-based Cuein was co-founded in 2021 by Mayukh Bhaowal and Vignesh Ganapathy. Cuein is backed by Lightspeed Venture Partners, Khosla Ventures, and Webb Investment Network.

Financial terms of the deal were not disclosed. This acquisition is designed to strengthen the functionality of ServiceNow’s AI agents, enabling them to more effectively analyze customer interactions and derive valuable insights from various communication platforms, such as chat, email, and phone.

ServiceNow ( NOW ) intends to incorporate Cuein’s AI technology into its platform, enhancing decision-making processes and elevating customer service experiences.

By analyzing fragmented customer data, Cuein will enable companies to deliver more intelligent, cohesive service solutions.

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“ServiceNow is at the forefront of the agentic AI revolution, redefining what human-centered AI can achieve across the enterprise, and the acquisition of Cuein is essential to our vision of creating more integrated, intelligent systems that connect AI agents, data, and workflows,” said Dorit Zilbershot, group vice president of AI Experiences and Innovation at ServiceNow ( NOW ).

By incorporating Cuein’s features, ServiceNow ( NOW ) anticipates enhancing its AI agents’ ability to quickly learn and adapt, leading to improved customer results.

The acquisition is expected to be completed in the first quarter of 2025. ServiceNow ( NOW ) held $5.3 billion in cash and equivalents as of September 30, 2024.

Price Action: NOW shares are trading higher by 0.84% at $1,066 at the last check Friday.

Image: Shutterstock.