D.A. Davidson's Gil Luria: There are still software companies that can benefit from AI

Core Insights - The application software industry is facing potential disruption from AI platforms, similar to the challenges faced by package software companies during the dotcom era [1][2] - Current market dynamics indicate that while AI is a disruptive force, its impact on application software companies is not immediate, and it may take time for significant changes to occur [2][4] Company Analysis - Salesforce has struggled this year, particularly due to its early bet on Agent Force, which was not ready for market adoption, leading to neglect of its core business [6][10] - In contrast, Service Now has performed well by focusing on its core business, demonstrating the importance of maintaining a strong foundational offering [6][5] - The differentiation in application software companies currently lies between those with strong core businesses, like Service Now, and those struggling, like Salesforce [5][6] Market Readiness - Corporate America is not fully prepared for the changes that Salesforce is attempting to implement, as changing business software is complex and infrequent [8][9] - High expectations for business software results create a low tolerance for inaccuracies, which AI currently struggles to meet in a business context [9][10]