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

AI Impact on Application Software - AI is a disruptive force but its impact on application software markets may take time due to the precise and integrated nature of business software [2][3] - AI technology may not be a great fit for business software due to the need for precise results, unlike consumer applications where there is more tolerance for errors [2][9] - The benefit of AI is clear in areas like data aggregation (Snowflake) and application observation (Datadog) [3] - Application software companies are talking about AI, but the impact will be slow [5] Salesforce's Situation - Salesforce's underperformance is attributed to betting on Agent Force before it was ready and neglecting its core business [6][7][10] - The challenges faced by Salesforce are due to both the company's premature investment in Agent Force and corporate America's lack of readiness for the technology [8] - Changing business software is complicated, infrequent, and requires high accuracy, which current AI software cannot guarantee [8][9] Competitive Landscape - The differentiation in application software is currently between companies with strong core businesses (Service Now) and those without (Salesforce) [5] - Service Now's stock has performed better due to its continued execution in its core business [6]