The news: Salesforce executives are banking on the enthusiasm surrounding AI to boost sales after the software giant posted its slowest revenue growth in 13 years. What happened: Salesforce posted its latest quarterly results on Wednesday. While they surpassed analysts' estimates, the company's sales have generally contracted as orders slow down. CEO Marc Benioff said customers are solely focused on AI and, more specifically, generative AI, which could be a driving factor for Salesforce revenue.
Why it matters: Salesforce has already been investing significantly in generative AI tools, contributing to a 36% increase in capital expenditures year-over-year. While Salesforce is in an era of "careful spending," the company is adding AI functionalities across its sales, marketing, and workplace communication software and recently debuted Einstein GPT, an enhanced version of its AI assistant for customer relationship management (CRM). What's next: Salesforce's profitability is on the rise, and its current revenue outlook does not include the potential benefits from AI, according to Mike Spencer, investor relations EVP. Benioff also envisions using data to make Salesforce's messaging app, Slack, artificially intelligent, and recently launched a $250M venture fund to invest in generative AI startups.
|
