AI integration

Salesforce shares fell 5% in after-hours trading despite strong Q4 fiscal 2026 results, including revenue exceeding expectations. The dip was triggered by fiscal 2027 revenue guidance falling slightly short of projections, and broader AI concerns impacting software stocks. The company also announced a $50 billion share buyback and a raised long-term revenue target.

Thoma Bravo co-founder Orlando Bravo sees the software sector as undervalued, particularly due to a lack of profitability. He notes that many public software companies rely on revenue multiples, which he considers risky. Bravo believes companies with deep, decades-long domain expertise are currently trading at attractive valuations, especially as AI integration highlights the value of this specialized knowledge. While acknowledging AI’s progress, he stresses that it cannot fully replace human R&D expertise in developing complex enterprise solutions.

The software sector faces a downturn, with stocks plummeting due to generative AI advancements. While companies like Box see significant drops, CEOs like Aaron Levie express excitement about AI’s potential for their products. New AI tools can create digital products rapidly, causing market apprehension about obsolescence. Some analysts remain optimistic, seeing current drops as buying opportunities and urging software companies to integrate AI to stay competitive. Meanwhile, AI infrastructure and model developers like Anthropic and OpenAI are securing massive funding.

Google is embedding its Gemini AI capabilities directly into Chrome, enhancing the browser with features like image generation, personalized responses using user data, and an “Auto browse” function for complex tasks. This move deepens competition with rivals and aims to create a more seamless, personalized web experience. The integration includes a refreshed design with a persistent Gemini panel and a “universal assistant” vision, challenging OpenAI’s Atlas browser and solidifying Google’s AI-powered internet strategy.

Citi has successfully integrated AI into its daily operations, empowering approximately 4,000 employees across diverse roles. Instead of siloed pilots, the bank fostered pervasive team-level adoption through its “AI Champions” program. This strategy prioritized employee training and support, enabling widespread use of firm-approved AI tools for everyday tasks with robust safeguards in place. This approach offers valuable lessons for other enterprises looking to scale AI initiatives effectively.

Google introduces “Personal Intelligence” for Gemini, allowing the AI to access user data from Gmail and Photos for tailored responses. This feature aims to deepen AI integration and boost Gemini’s capabilities, competing with Apple Intelligence. Initially available to US subscribers of AI Pro and AI Ultra, it will be opt-in. Google assures users that their data is used to improve functionality while maintaining privacy safeguards.

Salesforce is embedding generative AI into Slack, enhancing Slackbot for Business+ and Enterprise+ subscribers. This AI-powered bot understands conversational context and accesses data from connected services, aiming to reduce communication chaos. Salesforce believes this integrated approach offers an advantage over standalone AI tools by leveraging proprietary business data and internal workflows securely. This strategic move, reportedly the fastest feature rollout in Salesforce history, seeks to boost user engagement and productivity.

XPeng is accelerating its global expansion by establishing localized supply chain teams in Europe and ASEAN by 2026. This “In Local, For Local” strategy aims to create integrated operational ecosystems, enhance efficiency, and reduce costs. Following localized production in 2025, these new units will manage regional suppliers. XPeng anticipates half of its sales will be international within a decade, driven by AI integration and advanced manufacturing, even exploring robotics and flying vehicles with existing partners.