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Salesforce Doubles Down on AI with Agentforce amid Revenue Concerns

Salesforce is making a major push with its artificial intelligence product, Agentforce, as the company aims to lead what its CEO, Marc Benioff, describes as a “digital labour revolution.” Despite the enthusiasm surrounding Agentforce, there are uncertainties about whether businesses will invest in this technology. The software giant, known for its customer relationship management systems, unveiled its AI capabilities at the annual Dreamforce conference held in San Francisco.

Agentforce represents Salesforce’s initiative to automate various business processes using AI “agents.” These digital workers can perform multiple tasks autonomously, such as responding to customer service inquiries, managing sales leads, and personalizing product recommendations. Unlike traditional chatbots that rely on fixed scripts, Agentforce agents can analyze problems, access information from diverse sources, and take actions independently of human input.

Despite the promising technology, questions linger regarding the potential displacement of human workers. More pressing for Salesforce is the challenge of converting interest into revenue. Since its launch approximately one year ago, the company has secured 12,000 contracts for Agentforce. However, only around 6,000 of these are from paying customers, which represents less than 4 percent of Salesforce’s total customer base of 150,000. This disparity between experimentation and monetization has raised concerns among investors, contributing to a 25 percent decline in Salesforce’s stock this year, even as the broader technology sector sees gains.

During a recent earnings call, Marc Benioff shared the company’s third-quarter fiscal results for 2025, revealing revenue of $9.44 billion, an increase of 8 percent year-over-year. “Agentforce is at the heart of a groundbreaking transformation,” he stated, emphasizing the importance of this technology for the company’s future.

Investor sentiment remains cautious. Investment bank Jefferies has maintained a “buy” rating on Salesforce, setting a price target of $375, which is nearly 50 percent higher than current trading levels. Despite this optimistic outlook, the firm cautioned that Salesforce’s stock may not experience the anticipated re-rating until the company can demonstrate a significant increase in paying customers for its AI offerings.

As the AI landscape evolves, Salesforce’s strategy with Agentforce will be critical. The company must balance innovation with the necessity of convincing businesses to invest in its advanced solutions. The success of this initiative could define not only its future but also shape the broader market for AI-driven business solutions.

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