The Rise of Agentic AI: Salesforce Positioned for a Tech Revolution

With 2025 on the horizon, artificial intelligence (AI) software is set to dominate. While the spotlight has recently been on semiconductor companies like Nvidia, software firms are now ready to thrive as well, following significant investments in data centers for generative AI technologies.

According to Tech analyst Dan Ives from Wedbush, “The time has come for the broader software space to get in on the AI Party as we believe the use cases are exploding.”

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The concept of Agentic AI is gaining traction in the tech world, representing one of the most practical uses of generative AI beyond basic chatbots. This technology enables AI systems to autonomously tackle complex challenges through advanced reasoning and strategic planning.

Numerous companies are racing to develop their own agentic AI solutions; however, Salesforce‘s (NYSE: CRM) Agentforce appears primed to excel in this emerging field.

Image source: Getty Images.

Salesforce’s Foray into Agentic AI

With a long-standing reputation as a leader in cloud-based customer relationship management (CRM) software, Salesforce is well-situated to take full advantage of Agentic AI.

Building on years of experience, the company launched Agentforce at its Dreamforce conference in September. This platform empowers users to create and tailor autonomous AI agents capable of supporting both employees and customers around the clock. According to Salesforce, Agentforce successfully resolves 83% of queries on its help site and integrates seamlessly across various products, including CRM and Slack.

Salesforce’s robust track record of customer relationships, cultivated over 25 years, positions the company favorably compared to its competitors. CEO Marc Benioff emphasized during a recent earnings call that Agentforce has dramatically broadened the company’s total addressable market (TAM), stating, “We’ve really created a whole new market, a new TAM, a TAM that is so much bigger and so much more exciting than the data management market, it’s hard to get our head completely around.”

Salesforce has secured 200 deals for Agentforce, and Benioff characterized the demand as “incredible.”

Stocks are surging in response to AI’s potential to enhance productivity significantly, with Agentforce being among the first applications to harness this power. As Benioff noted, “This is really a moment where productivity is no longer tied to workforce growth, but through this intelligent technology that can be scaled without limits.”

Implications for Salesforce’s Growth

Salesforce’s growth rate has noticeably declined since pre-pandemic times, recording an 8.3% increase in the third quarter. Currently, there is no indication in the outlook that Agentforce will contribute significantly to growth yet.

For the upcoming fourth quarter, Salesforce anticipates a revenue growth of 7% to 9% and expects remaining performance obligations (RPO) to grow by 9%, which reflects the expansion of its order backlog for the next year.

It may take more time for Agentforce and Agentic AI to positively influence the company’s growth as the product was only recently introduced.

Given its highly scalable nature, Agentforce could ultimately deliver robust profit margins for Salesforce. Once the software is developed, the incremental costs for additional customers are nearly negligible, with primary expenses related to cloud computing resources. The significant research and development groundwork is already established, allowing for a substantial profit increase from Agentforce.

This potential profitability is one reason why cloud infrastructure companies are investing heavily in Nvidia components to build AI capabilities. The value proposition of programs like Agentforce offers tremendous benefits and efficiency improvements, which customers are likely willing to pay substantially for.

While the precise impact of Agentforce on Salesforce’s growth remains uncertain, investors should pay close attention to Benioff’s insights, considering this new technology has the potential to transform the company.

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Jeremy Bowman has no position in any of the mentioned stocks. The Motley Fool holds positions in and recommends Nvidia and Salesforce. The Motley Fool has a disclosure policy.

The views and opinions expressed are those of the author and do not necessarily reflect the views of Nasdaq, Inc.