The Costly Mistake Governments Make With ServiceNow

Government-Fleet-On-ServoceNow

Local governments work tirelessly to secure the budgets needed for modern technology initiatives. Over the past decade, many have made significant investments in ServiceNow—rightfully seeing it as a platform that can consolidate systems, improve transparency, and drive operational efficiency across departments.

But here’s the hidden truth: when fleet operations remain on disconnected, standalone systems, those agencies are unintentionally eroding the very ROI they fought to create. Instead of leveraging ServiceNow’s ability to unify telematics data, geospatial information, maintenance records, and procurement insights into a single platform, agencies are stuck juggling siloed systems that can’t talk to each other. The result is fragmented data, limited visibility, and lost opportunities to make smarter, data-driven decisions.

Why Do Local Governments Invest Heavily in ServiceNow?

State and local agencies often spend years navigating complex funding cycles, board approvals, and leadership changes to get ServiceNow adoption approved. CIOs and CTOs view it as their chance to break down silos, unify processes, and finally modernize technology.

Yet while HR, finance, and IT processes may migrate onto ServiceNow, fleets—the backbone of government services—are often left on legacy fleet management tools. This creates a dangerous gap between the promise of ServiceNow and the reality of daily operations.

How Does Running Fleet on a Separate System Cost Agencies Money?

Keeping fleet on a separate system doesn’t just create inconvenience; it creates financial leakage:

  • Duplicate Licensing & System Costs: Agencies continue paying for standalone fleet software while also investing in ServiceNow.

  • Fragmented Data: Fleet data becomes siloed, making it impossible to leverage alongside HR, finance, procurement, and IT data already inside ServiceNow.

  • Manual Integrations: IT teams waste resources trying to patch systems together, rather than using ServiceNow’s native workflows.

  • Delayed Decision-Making: Leadership lacks a true, single source of truth to understand the full cost of operations, delaying budget planning and policy initiatives.

For governments already managing dynamic budgets, these inefficiencies are more than technical problems—they are lost taxpayer dollars.

Why Should Fleet Operations Live on ServiceNow?

Fleet is not just a department—it is a critical enabler of public safety, transportation, utilities, and infrastructure. By moving fleet into ServiceNow with Stave Fleet Manager, agencies unlock:

  • Consolidated Data: Fleet records sit in the same system as HR, procurement, and IT—giving leaders a 360° view of asset usage, costs, and compliance.

  • Operational Efficiency: Automated workflows for maintenance, inspections, fuel, and scheduling eliminate redundant tasks and improve accountability.

  • Budget Clarity: CIOs and CTOs can tie fleet spend directly to agency-wide priorities, enabling smarter, more transparent budgeting.

  • Future Readiness: With data normalized inside ServiceNow, governments are positioned to leverage AI, predictive analytics, and sustainability tracking without costly integrations.

  • Lower Total Cost of Ownership: Agencies maximize their existing ServiceNow investment instead of layering additional third-party platforms.

Perhaps most importantly, ServiceNow allows agencies to pull in critical external data sources—like telematics feeds, GPS/geometrics data, and vendor maintenance records—directly into the same environment. That means:

  • Telematics can be overlaid with maintenance schedules to predict failures before they happen.

  • Geospatial data can be tied to fuel spend, showing which routes or regions are driving up costs.

  • Vendor service records can flow directly into compliance workflows, reducing audit risks.

These are insights that siloed fleet systems simply cannot provide—and they represent the kind of cross-platform intelligence that agencies already invested in ServiceNow expect to achieve.

And the timing has never been more critical—because ServiceNow’s next wave of innovation is powered by AI.

How Does Stave Fleet Manager Prepare Agencies for Agentic AI on ServiceNow?

ServiceNow customers are already making the shift toward agentic AI—a model where AI agents don’t just analyze data but actively take actions, trigger workflows, and optimize processes across the enterprise. For governments, this shift promises faster service delivery, predictive decision-making, and smarter use of taxpayer dollars.

The challenge? AI is only as good as the data it’s built on. Fragmented fleet systems create inconsistent records, duplicate entries, and disconnected insights. Without normalized, trustworthy fleet data inside ServiceNow, AI agents are left working with incomplete or misleading information.

Stave Fleet Manager changes that equation. By managing fleet operations directly on ServiceNow, it ensures that fleet data is:

  • Normalized and Trusted: Clean, structured data fuels AI models without requiring costly integrations or manual clean-up.

  • Cross-Connected: Fleet information sits alongside HR, finance, procurement, and IT data—giving AI agents a holistic view of operations.

  • Action-Ready: Workflows for maintenance, inspections, and compliance are already built into ServiceNow, meaning AI can trigger real actions in real time.

  • Predictive by Design: Agencies can leverage predictive maintenance, optimized routing, and cost forecasting directly within the ServiceNow platform.

  • Scalable for Innovation: As ServiceNow continues to expand its AI capabilities, agencies with fleet on-platform will be ready to adopt those innovations immediately—without having to rethink or re-platform.

This isn’t speculation—ServiceNow’s own leadership has made clear that government and AI-first modernization are at the top of their agenda.

“Our AI platform and solutions will help every federal agency consolidate the past, strengthen security and deliver better outcomes for the American people.”

What Has ServiceNow’s Leadership Recently Said About Focusing on Government & AI?

ServiceNow’s leadership has been crystal clear: government is a top priority for the company’s AI-driven roadmap.

  • In announcing the OneGov agreement with the U.S. GSA in September 2025, CEO Bill McDermott said:

    “Our AI platform and solutions will help every federal agency consolidate the past, strengthen security and deliver better outcomes for the American people.” (GSA.gov)

  • He described ServiceNow as the “AI control tower” for government transformation, emphasizing the company’s role in helping agencies modernize and return more value to taxpayers. (Nextgov)

  • Under the OneGov model, eligible federal agencies will gain access to up to 70% discounts on ITSM Pro and Pro Plus bundles, which embed agentic AI capabilities designed to boost workflow efficiency by as much as 30%. (GSA.gov)

But those promises only reach their full potential when every major operation—including fleet—is running on the platform.

How Can Agencies Protect Their ServiceNow ROI?

For CIOs and CTOs, the mission is clear: ServiceNow was never intended to be just another silo. It was designed to be the backbone of digital government. Fleet belongs in that vision.

Stave Fleet Manager is the only scoped and certified fleet solution built natively on ServiceNow. It’s not a bolt-on. It’s not a compromise. It’s a direct expansion of the platform that government agencies have already invested millions to adopt.

By bringing fleet into ServiceNow, local governments not only stop losing money to fragmented systems—they gain the ability to lead with transparency, efficiency, and innovation.

Frequently Asked Questions

Why do governments lose money when fleet is kept off ServiceNow?
When fleet runs on standalone systems, agencies pay for duplicate software, integrations, and support while missing the benefits of consolidated data, automated workflows, and cross-department insights. This creates financial leakage and undermines the ROI of their ServiceNow investment.

Can ServiceNow handle fleet data like telematics and GPS?
Yes. ServiceNow can ingest external data sources such as telematics feeds, GPS/geospatial information, and vendor maintenance records. Stave Fleet Manager normalizes this data so it integrates seamlessly with HR, procurement, IT, and finance processes already running on ServiceNow.

How does Stave Fleet Manager improve budgeting for local governments?
By centralizing fleet operations in ServiceNow, agencies can directly connect fleet costs to agency-wide priorities. This gives CIOs and CTOs real-time visibility into fuel usage, maintenance expenses, and asset lifecycles—helping them build smarter, more transparent budgets.

What is agentic AI and why does it matter for fleet management?
Agentic AI goes beyond analysis—it acts. ServiceNow’s agentic AI can trigger workflows, predict maintenance, and optimize operations in real time. Stave Fleet Manager ensures fleet data is clean, connected, and ready to fuel these AI-driven decisions.

What did ServiceNow’s CEO recently announce about government initiatives?
In September 2025, ServiceNow CEO Bill McDermott highlighted government as a top priority through the OneGov agreement with the U.S. GSA. He positioned ServiceNow as the “AI control tower” for federal and state modernization, offering agencies discounts and AI capabilities designed to boost efficiency by up to 30%.

Why is fleet so important to government operations?
Fleet underpins essential services—public safety, utilities, infrastructure, and transportation. Without integrated fleet management, governments risk inefficiencies, higher costs, and compliance gaps. With ServiceNow, fleet becomes a strategic enabler of efficiency and AI readiness.

Is Stave Fleet Manager officially certified on ServiceNow?
Yes. Stave Fleet Manager is the only scoped and certified fleet solution built natively on ServiceNow, ensuring compliance with platform standards and seamless integration into the broader ServiceNow ecosystem.

If your agency has already done the hard work to secure a ServiceNow investment, don’t leave fleet behind. It’s the missing piece to protecting your ROI and unlocking the full promise of AI-driven government. Explore Fleet Manager on ServiceNow today!