Salesforce CEO Benioff: AI Powers Up to 50% of Work

Marc Benioff, Chairman and CEO of Salesforce, spoke on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland, discussing the company's accelerated use of artificial intelligence. According to Benioff, AI is now handling 30% to 50% of the company's work, marking a significant shift in how technology is reshaping business operations.

"All of us have to get our head around this idea that AI could do things, that before, we were doing, and we can move on to do higher-value work," Benioff said. This digital labor revolution is not just a Salesforce phenomenon; it's a trend sweeping through the tech industry as companies seek to trim costs, boost efficiencies, and transform their workforce with AI.

The impact of AI on the tech industry is substantial. Earlier this year, Salesforce restructured around AI, cutting more than 1,000 positions. Other tech giants like CrowdStrike, Klarna, and Amazon are making similar moves. Klarna CEO Sebastian Siemiatkowski reported that the company has reduced its headcount by 40% due to AI investment, while Amazon CEO Andy Jassy stated that the e-commerce giant will use AI to reduce roles.

Benioff described the rise of AI in the workforce as a "digital labor revolution," with Salesforce achieving about 93% accuracy with the technology. "It's pretty good," he said, but acknowledged that hitting 100% accuracy is not realistic. He added that other vendors are at much lower levels due to a lack of data and metadata to build higher accuracy.

The integration of AI is not without challenges. Companies must navigate the ethical and practical implications of AI adoption, including job displacement and the need for new skills. However, the potential benefits are significant, with AI enabling smarter automation, better forecasting, and real-time decision-making.

As the tech industry continues to evolve, the role of AI will only become more prominent. Salesforce's journey with AI is a testament to the transformative power of technology and the potential for businesses to thrive in an AI-driven world.