Leidos and Moveworks Bring Agentic AI Capabilities to Government Agencies

Rhea-AI Summary

Leidos (NYSE:LDOS) and Moveworks have announced a strategic partnership to bring agentic AI capabilities to government agencies in the U.S., U.K., and Australia. The collaboration aims to enhance government worker efficiency by implementing AI-powered digital personal assistants for automating daily work processes.

Leidos has helped Moveworks achieve U.S. government security certification ready status, ensuring secure and compliant AI solutions for federal agencies. The partnership will enable government employees to focus more on core missions by automating administrative tasks such as managing computers, navigating databases, and drafting emails.

Moveworks, which surpassed $100M ARR in September 2024 and has a $2.1 billion valuation, currently serves 350+ large enterprises and over 5 million employees. Leidos, headquartered in Reston, Virginia, reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025.

Positive

• Strategic expansion into government sector AI solutions
• Secured government certification status, enabling access to federal contracts
• Partnership with established AI company serving 350+ enterprises
• Access to Moveworks' $100M ARR business and proven technology

Negative

• Increased exposure to government regulatory compliance risks
• Potential cybersecurity risks associated with handling sensitive government data

Insights

Technology Strategy Analyst

This partnership between Leidos and Moveworks represents a strategic technology expansion rather than an immediate revenue driver. By integrating Moveworks' agentic AI capabilities, Leidos strengthens its digital modernization portfolio specifically for government clients—a core market segment for the company.

The critical achievement here is Leidos helping Moveworks achieve government security certification ready status, addressing a major barrier to AI adoption in highly-regulated government environments. This creates a competitive moat against AI providers without such certifications and positions Leidos as an enabler for government digital transformation.

Context is important here: government agencies typically have extended procurement cycles and cautious technology adoption timelines. While commercial organizations have embraced agentic AI more rapidly, government implementation will likely follow a more measured pace, suggesting this partnership's value will materialize gradually.

Moveworks' credentials are notable—$100M ARR, 10% Fortune 500 penetration, and a $2.1B valuation—indicating Leidos has secured a partnership with an established enterprise AI provider rather than an experimental technology. This reduces implementation risk while still delivering innovative capabilities.

The diversified geographic focus across US, UK, and Australia markets aligns with Leidos' existing international government footprint, enabling cross-selling opportunities with minimal additional investment in market development.

Government Contracts Specialist

This partnership represents a calculated entry into the emerging government AI market, where adoption has lagged commercial sectors primarily due to security and compliance hurdles. The explicit mention that Leidos helped Moveworks achieve security certification ready status is particularly significant in government procurement contexts.

Government agencies face mounting pressure to improve operational efficiency amid budget constraints, making AI-enabled process automation increasingly attractive. By focusing this partnership on administrative task automation, Leidos targets the low-hanging fruit of government digital transformation—areas with minimal regulatory complexity but meaningful efficiency gains.

From a contracting perspective, this capability could strengthen Leidos' position on IDIQ contracts (Indefinite Delivery/Indefinite Quantity) and government-wide acquisition vehicles, where technology differentiation can secure greater task order share. It also potentially opens doors to modify existing contracts to incorporate these new capabilities, accelerating revenue generation compared to pursuing entirely new procurement vehicles.

The multi-country approach spanning US, UK, and Australia leverages Leidos' established presence in the Five Eyes intelligence alliance nations, where security credentials and cross-border technology sharing agreements facilitate faster adoption of cleared technologies.

While financial terms remain undisclosed, government AI initiatives typically begin with pilot programs before expanding, suggesting a gradual rather than immediate revenue impact for Leidos shareholders.

RESTON, Va., April 9, 2025 /PRNewswire/ -- Leidos (NYSE:LDOS), a leading information technology partner for governments worldwide, and Moveworks, the leading agentic artificial intelligence (AI) assistant for enterprises, are collaborating to increase the efficiency of government workers in the U.S., U.K., and Australia.

Agentic AI helps people do their work better and faster as a digital personal assistant that knows how to make decisions and automate daily work processes. As commercial organizations are embracing it, the Leidos-Moveworks partnership will allow government agencies to adopt the technology with assured security and compliance.

"For decades, Leidos has been at the forefront of helping government agencies achieve their mission objectives with speed and precision," said Steve Hull, president of digital modernization at Leidos. "Our expertise in AI and cybersecurity provides a solid foundation for introducing this transformative technology to the government sector. We're excited to bring these capabilities to government agencies where rapid, intelligent solutions will bring great benefits."

Government employees using agentic AI for administrative tasks such as managing computers and mobile phones, navigating databases and drafting emails will have more time to focus on their agencies' core missions.  

"Collaborating with Leidos allows us to elevate the standard of government employee support," said Bhavin Shah, CEO and co-founder of Moveworks. "Our focus is on developing AI solutions that enhance the efficiency and quality of operations within government agencies."

Leidos helped Moveworks achieve U.S. government security certification ready status to work with federal agencies. That ensures Moveworks is equipped to support government agencies with secure and compliant AI solutions.

Learn more about the Leidos and Moveworks partnership.

Learn more about Moveworks' Government solutions.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 48,000 global employees, Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025. For more information, visit www.leidos.com.

About Moveworks

Moveworks is the leading agentic AI assistant, helping businesses transform with a single place that empowers the entire workforce. Moveworks enables organizations to boost productivity by streamlining how employees across the company find answers and automate tasks. Currently 350+ large enterprises and over 5 million+ employees rely on Moveworks — including 10% of the Fortune 500. Customers include Hearst, Instacart, Palo Alto Networks, Siemens, Toyota, and Unilever. Moveworks surpassed $100M ARR in September of 2024 and has raised $315 million in funding at a $2.1 billion valuation from investors such as Alkeon, Bain, Iconiq, Kleiner Perkins, Lightspeed, Sapphire, and Tiger Global. The company is based in Mountain View, CA and has offices in Austin, Bangalore, New York, San Francisco, and Toronto. For more information, follow Moveworks on LinkedIn or visit Moveworks.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 3, 2025, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.  

Media Contact:                                                       

Victor Melara
Press Secretary & Senior Media Relations Manager
703.431.4612
victor.a.melara@leidos.com

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SOURCE Leidos

FAQ

What is the purpose of the Leidos (LDOS) and Moveworks partnership?

The partnership aims to bring agentic AI capabilities to government agencies in the U.S., U.K., and Australia, helping increase efficiency by automating administrative tasks for government workers.

How will government agencies benefit from the LDOS-Moveworks collaboration?

Government employees will have more time to focus on core missions by using AI to automate administrative tasks like managing computers, navigating databases, and drafting emails.

What security measures has LDOS implemented for the Moveworks partnership?

Leidos helped Moveworks achieve U.S. government security certification ready status, ensuring secure and compliant AI solutions for federal agencies.

What is Moveworks' current market presence as of 2024?

Moveworks serves 350+ large enterprises, has over 5 million employees using its platform, reached $100M ARR in September 2024, and has a $2.1 billion valuation.