Enterprise Software

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.

Workday’s shares slid up to 10% after analysts trimmed price targets, citing a modest FY‑26 subscription‑revenue outlook of $8.83 billion—only $13 million above prior guidance. The cloud‑software firm is betting on AI, highlighted by its $1.1 billion acquisition of Sana and the rollout of AI‑driven agents across finance, HR and planning. Despite early AI‑related revenue gains, Q3 earnings missed expectations, prompting target cuts from $340 to $235 and concerns over integration risk, competitive pressure from SAP/Oracle and cautious corporate IT spending. The stock trades around $240, roughly 8× forward subscription revenue.

ServiceNow CEO Bill McDermott addresses concerns about AI potentially displacing enterprise software. He emphasizes ServiceNow’s integration with major AI hyperscalers, viewing it as a collaborative ecosystem rather than a threat. McDermott argues that AI models won’t replicate ServiceNow’s comprehensive solutions for business processes, especially in complex environments. He highlights the limitations of siloed AI deployments and stresses the importance of a cross-functional approach. Additionally, ServiceNow announced a five-for-one stock split to attract retail investors, following strong earnings that exceeded expectations.