Seeking to keep their business ahead of their competitors, Salesforce (CRM) is going deeper into generative AI.
The company unveiled its “AI cloud” Monday morning ahead of a presentation by CEO Marc Benioff at an investor event in New York City. According to Salesforce, its AI Cloud products enable a variety of use cases, such as auto-generating personalized content for marketers and auto-generating code for developers.
Another important component of the new product is preventing large language models from holding sensitive customer data. This element is intended to address growing concerns within enterprises about generative AI that over-levers on customer data.
A new survey conducted by Salesforce found that 73% of employees believe generative AI poses new security risks. About 60% of people planning to use this technology don’t know how to keep their data safe.
“AI is reshaping our world and transforming business in ways we never imagined, and every company needs to be AI-first,” Benioff said in a statement.
Wall Street expects next-generation AI to open up new growth for the company, as Salesforce’s stock has hovered around 65% since the beginning of the year despite a sluggish economy.
“Salesforce persuades us of our strong position in the generative AI revolution by explaining the “GPT trust layer” built into Einstein GPT and the ability to leverage real-time access to large amounts of valuable data within that platform.” Powerful, sophisticated, and differentiated arguments. It provides a path for our clients to operate GenAI safely and effectively,” JP Morgan analyst Mark Murphy said in a recent memo.
But despite expectations of new AI products, investors are still eyeing Salesforce’s near-term prospects as customer spending becomes more cautious.
A few weeks ago, Salesforce only reiterated its full-year revenue guidance and said it would take longer to close the deal.
Salesforce shares are down 1.6% since its bleak outlook on May 31. The S&P 500 is up 2.2% over the same period.
The outlook follows Salesforce’s more enthusiastic quarter a few months ago, when the company fended off attacks from activist investors, slashed costs and pushed a new AI effort to improve margins. became.
“Better than expected, but signs of the future are bleak,” Guggenheim Museum analyst John Diffucci wrote in a research note.
Brian Sotzi Executive editor at Yahoo Finance. Follow Sotzi on Twitter @BrianSozzi and further LinkedIn. Bank Crisis Tips? Email brian.sozzi@yahoofinance.com
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