It’s autonomous agents vs. bot-like copilots at Salesforce’s (CRM) annual Dreamforce extravaganza in San Francisco this week.
Chat up the 6-foot-7 ringmaster of Dreamforce — Salesforce co-founder and CEO Marc Benioff — and he doesn’t hesitate in predicting a winner in the battle for enterprise artificial intelligence.
“It’s kind of a failed idea,” Benioff told Yahoo Finance of Microsoft’s (MSFT) Copilot, ratcheting up his recent hot takes on the tech giant’s much-publicized AI-powered tool.
Just two weeks ago, Benioff told me Microsoft has “misled” customers on the Copilot front.
Added Benioff, “This idea that there’s some kind of a platform or app that’s going to ride along or bolt on your technology and that’s going to make your company better, and the reality is, [it] just hasn’t worked for customers.”
Microsoft spokesman Frank Shaw didn’t return Yahoo Finance’s request for comment on Benioff’s comments.
At Dreamforce, Benioff and his various teams shared more details on what he has dubbed “Agentforce.“
Agentforce features AI sales agents that go beyond chatbots and can resolve customer inquiries.
Use cases of Agentforce were prominent in Benioff’s jam-packed keynote inside the Moscone Center on Tuesday. They range from an autonomous “agent” named Sophie at high-end retailer Saks helping a customer find the perfect piece of clothing to restaurant reservation platform OpenTable offering up better suggestions for diners.
Agentforce will be released widely to Salesforce customers in October. Benioff said version two of Agentforce is already being tested, and it promises to further refine outcomes for businesses.
Benioff insists the company is building AI with good intentions, but acknowledges development is moving faster than regulatory agencies.
“I think that we are doing a lot of the right things, but we don’t know necessarily what the wrong things are because the future is still somewhat undetermined,” Benioff says (video above).
As for Microsoft, the company unveiled “Wave 2” of its 365 Copilot technology on Monday. The AI assistant is more integrated into applications such as Excel, among other upgrades.
“Who are the five companies that you know who have transformed their businesses with Copilots and are craving Copilots?” Benioff said.
Ultimately, Benioff envisions one billion AI agents in service by the end of fiscal year 2026. Salesforce plans to monetize its new tool by charging per conversation, utilizing a consumption-based model.
The unwrapping of Agentforce comes as Salesforce aims to get back in the good graces of Wall Street following a stock price drubbing in late May amid a more challenging outlook than expected.
Salesforce regained some Street cred after its late August earnings, however.
The company bested Wall Street estimates on sales, operating margins, and earnings.
Quarterly sales increased 11% in Europe and 16% in Asia-Pacific on a constant currency basis. The company’s Americas segment notched 8% sales growth.
The company maintained its full-year sales outlook but lifted its expectations for operating margins. That may spur enthusiasm that Salesforce’s various AI initiatives will boost profits.
Salesforce shares are down 3% year to date, underperforming the S&P 500’s (^GSPC) 18% gain.
“At this point, we believe very little optimism is priced into the shares as it relates to the company’s AI opportunity so we view any early signs of adoption and indication that AgentForce can help drive higher ARPC as a potential positive,” Evercore ISI analyst Kirk Materne wrote in a client note.
Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on X @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com.
Three times each week, I field insight-filled conversations with the biggest names in business and markets on Yahoo Finance’s Opening Bid podcast. Find more episodes on our video hub. Watch on your preferred streaming service. Or listen and subscribe on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
In the Opening Bid episode below, PayPal (PYPL) co-founder and Affirm CEO Max Levchin shares his views on the future of AI.
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