Close to a trillion dollars has been invested in Artificial Intelligence (AI), leading investors to seek clear returns on their investments. The key may lie in “agentic automation,” where AI agents take over human tasks, potentially saving companies up to $3.7 trillion annually. This shift presents a significant opportunity for enterprise software firms, notably Salesforce, which has gained an early advantage with its Agentforce platform. AI agents can handle various roles more efficiently than traditional automation, enhancing productivity and reducing labor costs. This new technology could transform software industries, generating substantial revenue growth and reshaping the future of work as businesses leverage AI to enhance their operations.
By Amit Nath
Artificial Intelligence (AI) has become a massive player in the investment world, with nearly a trillion dollars poured into its infrastructure. Investors are now keen to know when and how the return on these investments will materialize. A promising answer lies in the realm of AI-enabled “agentic automation.”
Agentic automation refers to AI systems taking on tasks typically done by humans, tasks that account for a staggering $3.7 trillion in global spending. This shift from human labor to digital processes is opening a wealth of opportunities, particularly for companies that develop enterprise software. Salesforce, with its innovative Agentforce platform, is leading the charge in this emerging Market of digital workers.
AI’s Killer App: Agentic Automation
In an era where customers often endure long waits to resolve service issues, the need for efficient solutions is more urgent than ever. AI agents are set to revolutionize customer service and operational tasks. Unlike traditional automation, which executes fixed commands, AI agents can adapt to various scenarios, similar to rolling dice instead of using a calculator. This flexibility allows them to take on a wider array of tasks traditionally performed by humans.
Unlocking Oceans of ROI
Agentic AI has the potential to replace a significant portion of labor costs, estimated at $3.7 trillion. By investing roughly $500 billion into this technology, companies could see a staggering $3.2 trillion increase in profits—an ROI exceeding 6 times the initial investment. Moreover, digital labor scales much more efficiently compared to human labor, providing an added edge to businesses.
The world could experience a gradual transition in the job Market as AI technology matures, leading to new forms of employment and industry evolution.
Agentic Automation Represents a High-Value Opportunity for Software Firms
The implementation of agentic automation is poised to accelerate growth in the software industry significantly. This surge could lead to an expanded Market worth an impressive $3 trillion over a decade, reshaping the landscape of enterprise software.
Who Wins in an Agentic AI World
Three primary advantages will drive benefits for leading software companies:
1. Data Reinforcement: Access to high-quality data will greatly enhance the effectiveness of agentic AI, solidifying competitive advantages for firms like Salesforce and Microsoft.
2. Early Optimization: Companies using agentic AI internally first can demonstrate immediate efficiency gains, creating a positive feedback loop for attracting new customers.
3. Value-Based Pricing: Businesses are likely to align prices with the actual value delivered through agentic AI, creating more significant revenue opportunities.
The Agentforce Platform (Salesforce)
Salesforce stands out as a remarkable winner in this new arena. Its Agentforce platform is transforming digital labor expectations. Early users of Agentforce have reported noteworthy improvements. For example, OpenTable found a significant boost in efficiency for customer inquiries, and a medium-sized bank saw promising results, predicting a marked increase in spending on Salesforce services.
What This Means for Investors
For investors, Salesforce’s development trajectory suggests multiple opportunities:
– Expanded Market: By venturing into the digital labor Market, Salesforce is broadening its reach beyond traditional customer management systems.
– Competitive Edge: The integration of data and tools positions Salesforce favorably against its competitors.
– Recurring Revenue: Agentforce opens new streams of income, encouraging deeper user engagement across various departments.
Overall, Salesforce’s evolution remains underappreciated by the Market, pointing to a bright future ahead. Beyond Salesforce, there are promising investment opportunities in companies that possess substantial customer data and platforms conducive to agentic AI, including ServiceNow and Microsoft.
Amit Nath is the Director of Research at Montaka Global Investments. To learn more about Montaka, please call +612 7202 0100.
Note: Montaka is invested in ServiceNow, Microsoft, and Salesforce.
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What are AI agents in the workplace?
AI agents are smart software programs that can handle tasks usually done by humans. They can learn from data, make decisions, and even assist people in their jobs. They help make work more efficient and can take over repetitive tasks.
How are AI agents changing jobs?
AI agents are changing jobs by automating tasks. This means they can do things like sorting emails, scheduling meetings, or analyzing data. This allows human workers to focus on more complex and creative tasks.
Will AI agents take away jobs?
Some people worry that AI agents will replace jobs, but many experts believe they will change jobs instead. While some tasks might go away, new jobs may be created that involve working with AI or managing the technology.
How can workers adapt to AI agents?
Workers can adapt by learning new skills. This could mean getting training in technology, improving soft skills like communication, or being open to new ways of working. Being flexible and willing to learn will help workers stay relevant.
What industries are most affected by AI agents?
Industries like customer service, finance, and healthcare are seeing big changes because of AI agents. These sectors use AI for tasks like responding to customer inquiries, processing data, and even diagnosing medical conditions.