AI driven supplier onboarding using ServiceNow Otto for SLO

  • Release version: Yokohama
  • Updated April 22, 2025
  • 3 minutes to read
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    Summary of AI driven supplier onboarding using ServiceNow Otto for SLO

    The AI driven supplier onboarding playbook in ServiceNow Otto for SLO automates key onboarding tasks such as supplier registration, information validation, and task list generation. This playbook streamlines the onboarding process by using AI agents to ensure data accuracy, compliance, and efficient task management, helping customers reduce manual effort and improve supplier onboarding quality and speed.

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    Accessing the AI Driven Supplier Onboarding Playbook

    • Open the Supplier case playbook in the decision builder.
    • Change the case type from "Onboard new supplier" to "AI driven supplier onboarding" and save.
    • Set default models for One Extend capabilities by enabling at least one model as default in the Generic Prompt and Summarize records within SysOneExtendCapability.

    AI Agents and Their Roles

    Several AI agents collaborate throughout the onboarding workflow to ensure comprehensive supplier onboarding management:

    • Supplier data steward AI agent: Maintains data accuracy and compliance, detects duplicate supplier records, creates invitation cases, assigns tasks, and updates supplier case status.
    • Supplier data validator AI agent: Validates supplier data and documents in real time, extracting and comparing banking proof documents to submitted information for discrepancies.
    • Supplier approval AI agent: Manages supplier activation or rejection, updates company information, sends notifications, and closes the case with appropriate status.
    • Supplier document strategy generator AI agent: Creates customized onboarding flows based on supplier region and industry, generating tasks by referencing Knowledge Base articles.

    Note: Ensure AI agents are activated by enabling their Status toggle in the Define availability screen.

    Key Activities in the Playbook

    • AI suggested similar suppliers: Triggered during onboarding requests from sourcing; suggests similar suppliers for consideration or rejection to avoid duplicates.
    • AI driven primary data validation: Validates banking details submitted by the supplier by cross-referencing with attached proof documents, highlighting discrepancies for resolution.

    Supplier contacts can auto-populate banking information by selecting the "Extract values from the attachment" option during submission. Supplier managers can approve or reject onboarding requests directly within the approval stage using Yes/No buttons.

    Practical Benefits for ServiceNow Customers

    • Automates repetitive onboarding steps, reducing manual errors and effort.
    • Ensures supplier data quality, compliance, and real-time validation of critical information.
    • Enables dynamic, region- and industry-specific onboarding processes tailored to regulatory needs.
    • Provides transparency through AI agent decision logs, allowing stakeholders to monitor AI-driven decisions in real time.

    Use the AI driven supplier onboarding playbook to automate onboarding tasks such as supplier registration, information validation, and task list generation.

    Accessing the AI driven supplier onboarding playbook

    To access the AI driven supplier onboarding playbook:
    1. In the decision builder, open the Supplier case playbook.
      1. Change the existing playbook case type from Onboard new supplier to AI driven supplier onboarding.
      2. Select Save.
    2. Set the default model for the One Extend capabilities.
      1. Navigate to Sys_One_Extend_Capability.
      2. Open the Generic Prompt record.
        1. Go to the OneExtend Definition Configs related list.
        2. In the default column, ensure that at least one model is marked to True.
      3. Open the Summarize record.
        1. Go to the OneExtend Definition Configs related list.
        2. In the default column, ensure that at least one model is marked to True.

    Available AI agents in AI driven supplier onboarding

    The following table lists the agents that are used in the workflow.
    Important:
    In the Define availability screen for the AI agent, make sure that the Status toggle is enabled to activate the AI agent.
    Table 1. AI agents used in AI driven supplier onboarding
    AI agent AI agent role
    Supplier data steward AI agent
    • Ensures that the supplier data is accurate, compliant, and continuously maintained across systems. During onboarding, this agent also checks for duplicate supplier records.
      Note:
      Duplicate supplier onboarding requests can be resolved from the Now Assist panel by updating the legal name or the email domain of the primary contact's email address.
    • Handles supplier onboarding by creating an invitation case for the supplier contact and assigning the necessary supplier tasks. Additionally, it ensures that the supplier case status is updated appropriately in the system.
    Supplier data validator AI agent Validates supplier-provided data and documents in real time during onboarding, profile updates, or transactional interactions. This agent extracts details from the attached banking proof document and compares it with the submitted information to validate its accuracy.
    Supplier approval AI agent

    On approval, confirms supplier activation, activates supplier record and updates supplier company information, sends welcome email to the supplier, notifies the requester on onboarding status, and updates the case status to Closed complete.

    On rejection, provides a reason for rejection, sends an email to the supplier, notifies the requester and supplier about onboarding status, and updates the case to Closed rejected.
    Supplier document strategy generator AI agent
    • Generates dynamic onboarding flows that are customized to meet the supplier's compliance and regulatory documentation requirements. Flows are customized based on the following two factors:
      • The region in which the supplier is based.
      • The industry in which the supplier operates.

    • Automatically creates tasks for the onboarding flow by referencing all published Knowledge Base (KB) articles.
    Note:
    In the approval stage, supplier managers can also approve or reject supplier onboarding using the Yes and No buttons.

    Activities in the AI driven supplier onboarding playbook

    Table 2. Activities in the AI driven supplier onboarding playbook
    Activity Description
    AI suggested similar suppliers This activity is triggered when an onboarding request originates from a sourcing request. When a shopper selects an external supplier to fulfill a purchase request, an onboarding request is created automatically to onboard the external supplier.
    The AI suggested similar suppliers activity analyzes the sourcing request and suggests similar suppliers. You can select either of the following options to proceed:
    • Cancel the current onboarding request by selecting the reject button.
    • Continue with the current onboarding request by selecting the continue button.
    AI driven primary data validation This activity is triggered during the registration stage to validate banking details submitted by the supplier contact. It cross-references the banking details against the information in the attached proof and highlights any discrepancies, enabling the supplier relationship manager to resolve them.

    A supplier task is first created for the supplier contact to submit banking details through the Supplier Collaboration Portal. Once the supplier contact submits the banking details, the AI driven primary data validation activity is triggered. The supplier relationship manager can then choose to update either the record or the attached proof to resolve the discrepancies.

    Note:
    Supplier contacts must select the Extract values from the attachment to auto-populate form fields. checkbox while completing the supplier banking information task to auto-populate bank name, account holder name, and account number.

    The AI agent decision log displays the AI agents that are working to resolve the case, and you can watch their interactions, decisions, and thought processes as they happen in real time.