Salesforce’s New AI Strategy Adapts to Job Losses and Shifts Pricing Model

Source: YahooFinance

By Priya Khosla September 19, 2024

At its annual Dreamforce conference, Salesforce unveiled a significant shift in its artificial intelligence (AI) strategy, acknowledging that AI may lead to job losses. The software giant, traditionally known for its human-assisting AI tools, now focuses on autonomous AI agents capable of managing tasks like customer service and scheduling without human supervision. This marks a pivot from AI features that required human input, with Salesforce announcing that it will charge $2 per conversation handled by these AI agents. This new pricing structure allows Salesforce to protect its revenue in the face of potential workforce reductions driven by AI.

Salesforce’s CEO, Marc Benioff, emphasized the potential of these AI agents to increase workforce capacity without the need to hire more employees, particularly during busy periods. The company argues that this approach will offer efficiency gains while reshaping how businesses use AI. The move is part of a broader trend in the software industry, where companies like Workday and ServiceNow have also been developing AI solutions but have struggled to meet customer expectations or capitalize on revenue growth compared to hardware companies like Nvidia.

The new AI strategy reflects concerns that AI will lead to reduced corporate workforces, which could impact software subscription-based models. By pricing based on outcomes rather than the number of users, Salesforce aims to safeguard its business. As corporate call centers and other departments adopt AI-driven solutions, the need for human workers is expected to decrease, forcing software companies to rethink how they charge for their services in an AI-driven future.