Generative artificial intelligence (AI) represents an extraordinary technology, and we have merely begun to explore its vast potential. At present, it functions as an auxiliary tool alongside regular workflows, but it is poised to transition into a new era: Agentic AI. Also known as AI agents, Agentic AI involves programming software to carry out tasks typically performed by humans. This next phase of AI implementation is crucial, as it will empower pioneers in the field to achieve more with less. Salesforce (NYSE: CRM) stands as a leader in the agentic AI domain. The software company is aggressively promoting and integrating agentic AI and offers a premier platform for its implementation. Salesforce’s platform is highly conducive to agentic AI integration Salesforce develops customer relationship management (CRM) software, a sector known for its breadth, encompassing a business's interaction with potential customers from the marketing phase through to post-sale support. Numerous interactions occur along this spectrum, and Salesforce's software provides essential support at each stage. AI agents can automate many customer interactions, which explains why agentic AI is a significant trend for Salesforce. Like most software-as-a-service (SaaS) companies, the cost increases with the addition of features beyond the base software package, marking a pivotal moment for the generative AI trend; we are nearing a stage where companies are beginning to monetize their AI investments. Marc Benioff, Salesforce’s CEO and co-founder, is extremely optimistic about agentic AI.

During the company's 2024 Dreamforce conference, he remarked, "This is what AI was meant to be. " Such a bold claim highlights the potential for companies to enhance efficiency and allow employees to engage in tasks that require creative thinking—a transformative shift for many workers. But will this technology propel Salesforce’s stock to new heights? Salesforce needs this innovation to rejuvenate growth Salesforce is a well-established software company that has transitioned from a focus on growth at any cost to prioritizing profitability in recent years. Nevertheless, its sales growth has lagged behind the rates typical within the software industry over the past few quarters. In the third quarter of fiscal 2025 (which concluded on October 31), revenue grew by 8% year over year, reaching $9. 44 billion. Earnings per share (EPS) increased to $1. 60 from $1. 26 the previous year, a notable 27% rise. The faster EPS growth compared to revenue is attributable to Salesforce's improving margins. In the same quarter last year, the operating margin stood at 17. 8%, while this year, it rose to 20. 6%. This is an essential trend to monitor, as some of the most profitable software companies can attain profit margins as high as 30%. Although it may take time for Salesforce to reach this benchmark (if it can), achieving it would likely delight shareholders.