AI driven supplier onboarding using ServiceNow Otto for SLO

  • Release version: Zurich
  • Updated July 31, 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 automates key onboarding tasks such as supplier registration, information validation, and task list generation. It streamlines the supplier onboarding process by leveraging AI agents to ensure data accuracy, compliance, and efficient workflow management. This playbook is designed to reduce manual effort, improve supplier data quality, and accelerate onboarding times.

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    Accessing the AI driven supplier onboarding playbook

    • Open the Supplier case playbook in the decision builder.
    • Change the case type to AI driven supplier onboarding and save.
    • Configure the default AI models for One Extend capabilities by setting models to True in the Generic Prompt and Summarize records under SysOneExtendCapability.

    Key AI Agents and Their Roles

    • Supplier data steward AI agent: Validates supplier data accuracy and compliance, checks for duplicate supplier records during onboarding, and manages supplier invitations and task assignments. Duplicate supplier onboarding issues can be resolved through updates in the ServiceNow Otto panel.
    • Supplier approval AI agent: Manages supplier activation upon approval, updates company information, sends notifications, and closes cases accordingly. In case of rejection, it provides reasons, notifies involved parties, and updates case statuses.
    • Supplier document strategy generator AI agent: Creates dynamic onboarding workflows tailored to supplier region and industry compliance requirements, automatically generating tasks based on published Knowledge Base articles.

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

    Key Activities in the Playbook

    • AI suggested similar suppliers: When onboarding is initiated from a sourcing request, this activity analyzes and suggests existing similar suppliers to avoid duplicate onboarding. Users can either reject or continue with the onboarding request.
    • AI driven primary data validation: Validates supplier banking details by cross-referencing submitted information with attached proofs. Discrepancies can trigger reopening of banking tasks for updates. Suppliers can auto-populate bank details from attachments to reduce manual entry errors.

    Additional Features

    • The AI agent decision log allows real-time monitoring of AI agent activities, decisions, and reasoning during the onboarding process.
    • Supplier managers can approve or reject onboarding requests directly from the approval stage using simple Yes/No buttons.

    Practical Benefits for ServiceNow Customers

    This AI-driven onboarding playbook helps customers automate and optimize supplier onboarding with AI-enhanced accuracy, compliance checks, and tailored workflows. It reduces manual workload, prevents duplicate supplier entries, and improves communication throughout the onboarding lifecycle. By implementing this playbook, organizations can accelerate supplier activation while maintaining data integrity and regulatory compliance.

    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 ServiceNow Otto 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 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, eliminating the need to onboard a new supplier. 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.
    Note:
    In case of discrepancies, supplier managers can reopen the banking information task. Supplier contacts can then update the required information.

    Supplier contacts can auto-populate the bank name, account holder name, and account number fields by selecting the Extract values from the attachment to auto-populate form fields checkbox.

    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.