Have you ever wondered what it takes for a tech giant to pivot into the future while keeping investors happy? In the fast-paced world of enterprise software, one company is navigating a tricky tightrope: balancing bold AI innovation with the demands of a traditional business model. Salesforce, a titan in customer relationship management (CRM), is betting big on its AI platform, Agentforce, to reshape how businesses operate. But with its stock down over 27% this year, the question looms: can Salesforce turn the tide and prove its critics wrong?
The AI Revolution Meets Salesforce’s CRM Legacy
Salesforce has long been the gold standard in CRM, helping businesses manage customer interactions with ease. But the rise of artificial intelligence has shaken things up. Agentforce, Salesforce’s AI platform, promises to take things further by automating tasks, streamlining operations, and cutting costs. It’s a bold move, but not without risks—especially when Wall Street is watching closely. Investors are skeptical, and the company’s stock has taken a beating. So, what’s the plan to get back on track?
Agentforce: A Game-Changer for Businesses
Let’s start with the good news. Agentforce is already making waves for companies that have embraced it. Take a small business tax firm, for example. After piloting Agentforce, they deployed a virtual chat agent to handle client inquiries, freeing up staff for more complex tasks. The results? They’re planning to cut seasonal hiring by 50% in 2026. That’s huge for their bottom line, but it’s a double-edged sword for Salesforce.
By automating routine tasks, we can focus our team on high-value work, reducing our dependency on extra staff.
– Chief Technology Officer at a tax firm
This kind of efficiency is exactly what Agentforce is designed for. It’s not just about answering questions—it’s about reasoning and solving problems with minimal human input. Other companies, like a household appliance manufacturer, are using Agentforce to centralize data and respond to customers faster, aiming for a five-star consumer experience. A digital notebook maker has scaled Agentforce across its IT and HR departments, with plans for more. Even a major medical institution is gearing up to use it for patient call management by year-end.
- Enhanced efficiency: Automates repetitive tasks, saving time and resources.
- Data centralization: Streamlines access to critical information for faster decision-making.
- Scalability: Adapts to various departments, from customer service to HR.
These success stories highlight Agentforce’s potential to transform businesses. But here’s the catch: if companies need fewer employees to do the same work, they’re also buying fewer Salesforce licenses. That’s a problem when your revenue relies on a seat-based pricing model.
The Investor Dilemma: AI vs. Core CRM
Salesforce’s stock has had a rough year, and it’s not hard to see why. The company’s heavy investment in AI has raised eyebrows. Critics argue that Salesforce is pouring money into Agentforce at the expense of its core CRM platform—the very thing that made it a household name in enterprise software. With shares dropping from a high of $369 in December 2024 to their current lows, investors are nervous.
I’ll be honest: I get the concern. If AI reduces headcounts at client companies, it could shrink the number of users paying for Salesforce’s software. That’s a direct hit to the software-as-a-service (SaaS) model that’s been the company’s bread and butter. But is it fair to say Salesforce is neglecting its roots?
Agentforce enhances our core products, creating a unified platform where humans and agents work together seamlessly.
– Salesforce CEO
The CEO’s argument is compelling. Agentforce isn’t a standalone gimmick—it’s woven into Salesforce’s ecosystem, enhancing its CRM tools. The company reports over 6,000 paid Agentforce deals and a 60% increase in clients moving from pilots to full deployments. That’s not nothing. But the numbers need to translate into revenue growth, and fast.
Balancing AI Growth with Traditional Revenue
Here’s where things get tricky. Salesforce’s traditional revenue comes from selling licenses per user—what’s known as the seat-based model. If Agentforce reduces the need for human staff, fewer seats are needed. So, how does Salesforce keep the cash flowing? The answer lies in its usage-based consumption model for Agentforce, where clients pay based on how much they use the AI.
It’s a shift, no doubt. But it’s not impossible. Think of it like swapping a fixed phone plan for a pay-as-you-go model. If Salesforce can scale Agentforce’s usage-based revenue fast enough, it could offset the dip in seat-based licenses. The challenge is speed—competitors like ServiceNow are already nipping at Salesforce’s heels with their own AI-driven offerings.
| Business Model | Revenue Source | Challenge |
| Seat-Based | Per-User Licenses | Reduced headcounts lower license sales |
| Usage-Based | AI Consumption | Scaling revenue to match core business |
The good news? Salesforce still dominates the CRM market with a 20.7% share, far ahead of Microsoft, Oracle, and SAP. That gives it some breathing room to figure this out. But the clock is ticking, and investors want results.
Dreamforce: The Moment of Truth
Every year, Salesforce’s Dreamforce conference is a big deal. It’s where the company shows off its latest innovations and rallies its community. With Dreamforce just weeks away, all eyes are on Salesforce to deliver a knockout performance. Investors want hard evidence that Agentforce is driving revenue across the board—not just in AI but in the core CRM business too.
According to a senior Salesforce executive, the focus is on making Agentforce simpler and more accessible. They’re even exploring ways to let agents create agents—a meta-concept that could blow minds if it works. Imagine AI building its own tools to solve your business problems. That’s the kind of innovation that could get Wall Street excited again.
- Show customer success: Highlight real-world wins from Agentforce deployments.
- Prove revenue growth: Share data on how AI is boosting overall sales.
- Simplify adoption: Make it easier for businesses to integrate Agentforce.
If Salesforce can nail these points at Dreamforce, it might just turn the narrative around. A strong showing could lift the stock, which is currently trading at a relatively modest 21 times 2026 earnings estimates—down over 30% from its peak.
The Activist Investor Wildcard
Here’s where things get spicy. Activist investors, like Starboard Value, have upped their stake in Salesforce by 47% recently. These folks aren’t here to sit quietly—they want change. In the past, activists pushed Salesforce to boost efficiency and profitability, and it worked. The stock nearly doubled in 2023 and climbed another 27% in 2024. Could they do it again?
Activists can help Salesforce expand margins and avoid bad acquisitions.
– Industry analyst
I think there’s something to this. Activists bring pressure, sure, but they also bring focus. If they can nudge Salesforce toward smarter investments and tighter operations, it could be a win for everyone. The trick is balancing that push for efficiency with the need to keep innovating in AI.
Why I’m Still Optimistic About Salesforce
Look, I’m not saying Salesforce is out of the woods. The stock’s had a rough ride, and the transition to an AI-driven model is messy. But there’s a lot to like here. The company’s still the CRM king, with a massive market share and a loyal customer base. Agentforce is proving its worth, and the leadership team has a track record of navigating big shifts.
Perhaps the most interesting aspect is how Salesforce is blending AI with its core offerings. It’s not about replacing humans—it’s about making them more effective. Companies using Agentforce aren’t just cutting costs; they’re improving customer experiences and scaling operations in ways they couldn’t before. That’s a powerful story to tell investors.
Salesforce Success Formula: 50% Innovation (AI + CRM) 30% Customer Adoption 20% Investor Confidence
The road ahead isn’t easy. Salesforce needs to prove that Agentforce can drive enough revenue to offset any slowdown in its core business. It also needs to fend off competitors and keep investors happy. But if anyone can pull it off, it’s a company with Salesforce’s track record. Dreamforce could be the turning point—let’s see if they deliver.
So, what do you think? Can Salesforce silence its critics and get its stock back on track? Or is the AI gamble too risky? One thing’s for sure: the next few months will be a wild ride for this tech giant. Stay tuned.
