Select Language:
Salesforce’s CEO, Marc Benioff, has expressed confidence that AI will not spell doom for the SaaS (Software as a Service) industry. During the company’s fourth-quarter earnings call on Wednesday, Benioff downplayed fears that artificial intelligence could lead to a collapse or disruptive overhaul of SaaS platforms. He emphasized that as more businesses adopt SaaS solutions, the integration of AI will only make these systems stronger rather than obsolete.
Market anxiety has surged recently, especially with the launch of new AI tools by companies like Anthropic. There is widespread concern that AI might replace traditional software, weighing on the stocks of major players such as Salesforce and Asana. A recent research report intensified these worries, suggesting that AI development could even trigger an economic downturn.
Responding to these fears, Benioff reassured investors that Salesforce is actively leveraging AI to adapt to the evolving landscape. He highlighted that the company’s Agentforce platform is experiencing strong demand, and noted that several leading AI firms are themselves customers of Salesforce. He added, “Anthropic’s entire business runs on Salesforce and Slack, and I believe most AI companies are in a similar position.”
Benioff’s comments were well-received by the market, with Salesforce’s stock rising about 2% in early Thursday trading. Reflecting on past industry doubts, he pointed out that this isn’t the first time the SaaS sector has faced fears of a “doomsday”—recalling the 2020 pandemic-driven doubts about the software industry’s stability, which eventually proved unfounded.
Meanwhile, other industry leaders are also trying to ease investor concerns. Workday CEO Anil Bhusri emphasized that AI companies, including Anthropic and OpenAI, rely on Workday’s enterprise software for critical functions like human resources and financial planning. He noted that these systems involve complex security measures and regulatory requirements, making them unlikely to be replaced by AI-generated code anytime soon. Bhusri highlighted the limitations of programming atmospherically, asserting that AI cannot easily recreate the sophisticated systems needed for HR or enterprise resource planning.
ChatGPT
Perplexity
Gemini AI
Grok AI
