What’s another day in the tech world without Silicon Valley titans hurling barbs at one another? Salesforce CEO Marc Benioff is back in familiar territory, partaking in one of his favorite activities—taking a swing at Microsoft’s AI offerings, ensuring he’s making headlines once again.
During a recent interview, Benioff suggested we’d all be better off tuning out the clamor surrounding AI, particularly from anyone other than him. “Microsoft has truly let down numerous customers,” Benioff said to Business Insider, asserting that the tech giant has inflated expectations around its AI solutions. “They’ve done it by delivering a level of hype that hasn’t translated into success,” he added, emphasizing his skepticism.
Of course, Benioff is heavily invested in creating doubt regarding the effectiveness of Microsoft’s much-hyped AI copilot, bringing billions to the argument.
Just a day prior to Benioff’s remarks, Microsoft unveiled 10 new AI agents for its Dynamics 365 suite, innovations that directly compete with Salesforce’s upcoming AI agent, Agentforce, which is set to hit the market this Friday.
“Microsoft’s struggle with engaging customers who have experienced any level of success with their AI solutions is evident,” he added during his conversation with Business Insider, casting further shadows on Microsoft’s achievements in AI.
This latest jab at Microsoft and its CEO Satya Nadella comes on the heels of Benioff’s recent fiery comments made two weeks ago on the podcast Rapid Response, where he asserted that “Microsoft’s actions have severely hurt not just our entire industry, but also the vast amount of AI research conducted to date.”
In contrast, Microsoft pushed back against these critiques, referring Fortune to customer data that indicates nearly 60% of Fortune 500 companies utilize Copilot. Despite Benioff’s claims of disappointment, Microsoft’s client base continues to flourish, with Copilot user numbers surging over 60% quarter-over-quarter. Notably, the number of users engaging with the product daily has nearly doubled during the same timeframe, showcasing strong user adoption push according to the company’s latest metrics.
Benioff touts his own AI, acknowledges there’s room for improvement
Benioff remains optimistic about AI’s vast potential but critiques prevailing narratives on its capabilities. “I’ve never been more excited about anything at Salesforce throughout my career,” he stated on the podcast, indicating his belief that AI is poised to revolutionize not just Salesforce, but the entire software landscape.
However, AI assistants have not completely lived up to the lofty expectations set upon them. Numerous products and chatbot systems leveraging AI often encounter issues like hallucinations and bugs, leading many to question the promised transformations.
Recently, Benioff tweeted that while “AI isn’t yet curing cancer or solving climate change as pundits claim, our current AI tools have immense power to drive significant improvements across various aspects of life in a collaborative manner.”
The focus, instead, revolves around “managing expectations,” a message that, while perhaps less thrilling, is becoming increasingly relevant as the tech world navigates the realities of AI.
Saying that Copilot “spews data all over the floor,” Benioff bluntly stated that he hasn’t “found a customer who has had transformational work” with Microsoft’s tool, which leads to disillusionment for those who believed the prevailing narrative. Salesforce encourages clients to “get their hands in the soil,” insisting they explore the possibilities of what AI can truly deliver, making it an engaging but grounded approach to AI adoption.
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Interview with Marc Benioff, CEO of Salesforce
Editor: Thank you for joining us today, Marc. It’s been an eventful time in the tech landscape, especially with your recent comments regarding Microsoft’s AI offerings. Can you elaborate on your criticisms?
Marc Benioff: Absolutely. I believe Microsoft has let down many of its customers by creating a lot of hype around their AI solutions without delivering substantial results. They’ve inflated expectations, and that disconnect is quite concerning.
Editor: You mentioned that you don’t think AI from Microsoft is engaging enough for their users. What specific evidence do you have to support your claims?
Marc Benioff: The evidence is right in front of us. Their struggles with customer engagement, especially for those who haven’t seen success with their AI products, is telling. Meanwhile, at Salesforce, we’re doubling down on ensuring that our AI tools deliver real value.
Editor: Recently, Microsoft rolled out 10 new AI agents for its Dynamics 365 suite. How do you see Salesforce’s upcoming Agentforce competing in this arena?
Marc Benioff: Our Agentforce is designed to genuinely meet the needs of our customers. While Microsoft is pushing out features, we’re focused on meaningful innovation that addresses real-world challenges. This isn’t just about competition; it’s about creating tools that empower users and businesses.
Editor: You’ve also voiced concerns about the impact of Microsoft’s actions on the broader industry. Can you clarify what you meant by that?
Marc Benioff: I believe that their approach could stifle innovation across the tech sector. When a company’s influence leads to exaggerated promises and unmet expectations, it can hinder progress in AI research and development. We need to cultivate trust and realistic goals in this space.
Editor: Despite your criticisms, Microsoft has reported impressive user adoption rates for their AI Copilot. How do you respond to those metrics?
Marc Benioff: Metrics can be impressive on paper, but we need to look deeper at user satisfaction and real improvements in productivity. It’s not just about numbers; it’s the transformative impact we can deliver to our customers that truly matters.
Editor: Let’s shift back to Salesforce. You’ve expressed excitement about the potential of AI. What can consumers expect from Salesforce in the near future?
Marc Benioff: I’ve never been more thrilled about what Salesforce is doing with AI. We’re on the brink of revolutionizing how businesses operate and interact with their customers. However, I also acknowledge that there’s a journey ahead, and we must recognize where AI can improve and evolve.
Editor: As the landscape continues to change, what’s your ultimate vision for the role of AI in business?
Marc Benioff: My vision is for AI to be an enabler, enhancing human capabilities rather than replacing them. It should streamline processes, foster creativity, and ultimately drive meaningful connections between businesses and their customers.
Editor: Thank you for sharing your insights, Marc. It’s clear that the competition is heating up, and we look forward to seeing how Salesforce continues to innovate in the AI space.
Marc Benioff: Thank you for having me. Exciting times lie ahead!
Outcomes. If customers are using a product but not experiencing transformational results, then we have a fundamental issue. My focus is on ensuring our users realize the benefits of AI in a tangible way, which we believe is where Salesforce excels.
Editor: You mentioned the need for managing expectations around AI. Can you elaborate on what that looks like for Salesforce?
Marc Benioff: Managing expectations is about honesty and transparency with our customers. It’s about acknowledging that while AI has enormous potential, it’s not a magic bullet. For example, we’re working on tools that allow users to engage directly, experiment, and truly understand what AI can do for them, rather than relying on buzzwords and flashy promises.
Editor: Lastly, what are your future expectations for AI at Salesforce?
Marc Benioff: I’m incredibly optimistic about the future. We’re on the cusp of a major transformation in how businesses operate, and our AI capabilities are at the forefront of that change. While there are challenges, I believe that with the right approach, we can harness AI’s power to improve collaboration, increase efficiency, and ultimately drive better outcomes for our customers.
Editor: Thank you for your insights, Marc. It’s clear that the conversation around AI is only just beginning.
Marc Benioff: Thank you for having me! It’s an exciting time to be in technology.
