Marc Benioff says it’s ‘crazy talk’ that AI will hurt Salesforce | Equity Podcast

Introduction and Benioff's Perspective on AI

• This episode is presented by Invest Puerto Rico, highlighting the island as a prime location for businesses to thrive (0s).
• Mark Benioff, CEO of Salesforce, is a guest on the podcast, discussing his latest work with Time Ventures and Salesforce Ventures (34s).
• Benioff believes AI agents are the next big thing for enterprise software, transforming the way companies interact with their customers (42s).
• He also explores the application of AI agents in the healthcare space and shares his interest in various gadgets (46s).

Benioff's Investment Activities and Industry Trends

• As a founder of Salesforce, Benioff has experience running a startup and has been in "founder mode" since the company's inception (1m20s).
• Benioff is still actively involved in angel investing through Time Ventures, with a portfolio of over 200 diversified companies, mostly in software and health enterprise software (1m35s).
• Salesforce Ventures has invested over $5 billion in enterprise software, with a remarkable internal rate of return (IRR) of 28% (2m6s).
• Benioff has invested in companies like Fitbit, Aura, Upstart, and Airbnb, but also acknowledges having experienced failures (2m17s).
• He is excited about the current trends in the software industry, which he believes are undergoing a transformational moment, with AI being a key driver of change (2m33s).
• Benioff thinks that the software industry is at a moment of incredible transformation and change, with unprecedented opportunities for customers (2m54s).

Transformative Applications of AI Agents

• A textbook manufacturer is using Salesforce's products, including sales, service, and marketing, and is now implementing a new platform called Agent Force, which allows them to ask the question "what if your workforce had no limits" and potentially transform their business (4m30s).
• This question is a game-changer, as it was not possible to ask in the past 25-45 years of doing business, and it can change how companies think about their business KPIs (5m0s).
• Another example is College Possible, an NGO that does college counseling for high school kids, which is using Salesforce and an agent to democratize the ability to communicate and motivate every kid to go to college (5m59s).
• The idea of a workforce with no limits can be applied to various industries, such as scaling sales and service organizations at peak times (6m26s).

AI Agents and the Future of Enterprise Software

• There is a contingent that believes AI agents will lead to the death of enterprise software, but this is considered "crazy talk" as agents will work together with apps, interfaces, and databases to deliver high levels of accuracy (6m49s).
• The integration of agents with existing technology, such as disc drives, operating systems, databases, and applications, will work together to deliver high levels of accuracy (7m15s).
• It's essential to understand that this is an incredible moment in computer science, and it's crucial to stay with the excitement of the moment while also understanding the underlying technology (7m39s).
• Computer science and AI, specifically Large Language Models (LLMs), are understood, but LLMs are not databases and will not replace the customer interface or user interface layer, which changes the role of Salesforce as a data storage platform (7m43s).

Salesforce's Data Management and Security in the Age of AI

• Salesforce manages 230 petabytes of data for its customers, with a focus on security and a sharing model that controls access to sensitive information, such as bank account balances (8m9s).
• The sharing model is a security model that ensures users can only access authorized data, and this model will still be necessary at the agentic layer to preserve data security and prevent data spills (8m31s).
• The agentic layer will need to use techniques like ensemble rag and workflow to deliver accurate capabilities and ensure data security, and it will also need to have access to the LLM and metadata (9m17s).
• The use of AI agents will not negate the need for a database or application, unless a company is fully automating all human interactions and workflows (9m37s).

AI Agents Enhancing Customer Relationships

• Companies like Disney use Salesforce to manage customer relationships and touchpoints, and AI agents can enhance these relationships by providing personalized experiences and access to customer data (10m19s).
• Disney guides use a Salesforce app to access customer information and provide special perks and services, demonstrating the potential of AI agents to enhance customer experiences (10m52s).
• The use of AI agents can improve customer relationships and provide more personalized experiences, but it will not replace the need for human workers and data management (10m12s).
• The concept of AI agents is being utilized to enhance customer experience, as seen in the example of Disney's use of AI to manage ride flow control and provide personalized recommendations to visitors, with the agent able to look across the entire park and make decisions in real-time with 95% accuracy (11m35s).

Salesforce's Deployment and Management of AI Agents

• Salesforce is also using AI agents in its customer service and is about to deploy a sales agent, with the goal of having a billion agents deployed within a year, and is already the largest and most important supplier of agents in the world (12m12s).
• Salesforce is using its AI agents in its customer service call center and is about to deploy a sales agent, with customers able to access help and resources through the agent on the Salesforce website (12m29s).
• The management of AI agents is being handled by Salesforce administrators, who are part of the Trailblazer Community, which consists of millions of people who are mostly non-programmers and are able to manage the agents through clicks, not code (13m10s).
• Salesforce has extended its platform to include agent force, which is already available on 125,000 Salesforce platforms, and is encouraging its administrators to become "agent blazers" to manage and configure the agents (13m16s).
• The administrators are responsible for turning on the agents, configuring them, setting up guardrails, and tuning them to make them more accurate, before turning them over to sales, customer service, or marketing teams to use (13m46s).

Salesforce Ventures and Ecosystem Growth

• Salesforce Ventures has added $500 million to invest in AI technology and is investing in startups that fit into the Salesforce ecosystem, which now has 75,000 people and is expected to generate $38 billion in revenue this year (14m31s).
• Salesforce is a major software company, operating in 15 major geographies and automating 15 major customer touchpoints, with over 60 acquisitions, including the recent acquisition of Airkit, which has been reintegrated into the platform (14m51s).
• Salesforce has invested in numerous startups, many of which have gone public, such as Snowflake, and has made significant returns on these investments, including a $1.6 billion return on Snowflake alone (15m42s).
• The company believes that innovation comes from both within and outside of Salesforce, and therefore works closely with the startup and private equity communities to stay ahead of the curve (15m59s).

Puerto Rico as an Innovation Hub and Competitive Landscape

• Puerto Rico is being promoted as a hub for innovation, with a vibrant ecosystem, highly skilled and bilingual talent, and competitive tax incentives (16m21s).
• Salesforce is often compared to Microsoft, and while it is not directly chasing Microsoft, it is aware of the competition, particularly in the area of autonomous agents (16m47s).
• Microsoft's co-pilot product has been disappointing to many customers, and the company's strategy of writing its own LLMs has not been transformative for companies (17m20s).
• The speaker is impressed with companies that have successfully transformed themselves using AI and agents, but notes that many companies are still in the experimental phase and have not yet achieved significant ROI (17m56s).

AI in Healthcare and the Potential for ROI

• The largest industry in the United States, Healthcare, is an area where the speaker is excited to see significant ROI from AI and agents (18m17s).
• The international motto of Fakarava is "I don't give a Fakarava," which is fitting given the circumstances of a recent injury, where an MRI was required, made by one of the company's customers, Siemens (19m2s).
• Doctors and nurses are experiencing burnout since the pandemic, leading to morale issues, and patients are often left to advocate for their own healthcare (19m21s).
• The healthcare system in the United States has a gap, leaving patients to manage their own care, but technology is at a point where it can change this, allowing for more personalized and supportive care (20m34s).
• With the help of technology, patients can have a partner in their hospital and doctors, making the healthcare experience more manageable, especially for the elderly (20m43s).
• The idea of Artificial General Intelligence (AGI) raises questions about the future of healthcare, but for now, the focus should be on the present moment and how technology can improve current healthcare experiences (21m44s).
• The current state of healthcare is not ideal, with patients often left to navigate the system on their own, but with the help of technology, this can change, allowing for more supportive and personalized care (20m36s).

Advancements in AI and Addressing Privacy Concerns

• There have been significant advancements in AI over the last two years, particularly with large language models that can produce tremendous accuracy when grounded in the right data and metadata (21m54s).
• These advancements can enable businesses to achieve incredible things, and it's essential to motivate people to understand what they can do today rather than scaring them about potential future implications (22m20s).
• Concerns about the privacy implications of AI, especially in healthcare, are valid, as sensitive data is already being stored by various healthcare providers (22m32s).
• A comprehensive medical record system, such as the one used by UCSF in San Francisco, can professionally manage patient data and provide a holistic view of a patient's health (23m20s).
• This system, surrounded by Salesforce, enables doctors to access and analyze comprehensive data, including medical history, lab results, and scans, to make informed decisions (23m22s).
• The integration of an agentic layer can further enhance productivity in healthcare organizations by interfacing with patients and taking some workload off doctors (24m20s).
• This technology can also provide patients with safe and secure access to their data, enabling them to receive real advice based on science, rather than relying on unverified online sources (24m40s).

Gadgets, Consumer Tech, and Automotive Integration

• The use of gadgets, such as fitness trackers and smart rings, is becoming increasingly popular, with the latest example being the new Series 4 Aura ring (25m10s).
• The intersection of consumer tech and healthcare is leading to innovative solutions, with cars also becoming increasingly advanced and integrated with technology (25m22s).
• General Motors is an example of a company that has done a great job in areas such as electrification and connecting with customers, and Salesforce has been fortunate to build for General Motors' OnStar system, which utilizes Salesforce software to provide customer support (25m27s).
• The OnStar system allows customers to press a button in their General Motors car and receive assistance from a representative, who uses Salesforce software to access the customer's data and provide support (25m42s).
• However, there are still limitations to the system, such as customers being asked to call back during certain hours if they are in a different time zone, but the addition of an "agentic layer" could help to address these issues and provide more comprehensive support (26m16s).
• The agentic layer would allow the system to never miss a phone call and provide immediate support to customers, even if a human representative is not available (26m32s).
• The use of an agentic layer could also help to address the issue of disintermediation between car manufacturers and their customers, as manufacturers often have a lot of data but lack the people to provide value-added services and generate more revenue (27m29s).
• The lack of people to provide support is a common issue in many industries, including healthcare and the auto industry, but the use of agents and agentic layers could help to fill this gap (27m53s).

Privacy Concerns and Data Management in the Age of AI

• However, there are also concerns about the privacy implications of using agents and agentic layers, particularly when it comes to turning over data and decision-making abilities to these systems (28m27s).
• Companies like car manufacturers and retailers have access to customer information, including purchase history and personal data, which can be used to improve customer experience and automate processes like returns and customer service (28m53s).

Retail Applications and Improved Customer Experiences

• Saks Fifth Avenue, a US retailer, uses Salesforce's customer touch points and attended the Dreamforce conference to learn how to automate their return system and customer service, resulting in the implementation of a return agent and customer service agent within two hours (29m4s).
• Salesforce's platform allows companies to augment and extend their capabilities with high-quality AI, resulting in improved customer experiences, as seen in cases with companies like Disney, Sachs, and healthcare companies (29m58s).
• The use of AI in customer service can lead to increased sales, as seen in a test with Gucci, where sales from the call center increased by 35% due to customer service agents having access to product and sales information (30m36s).
• The implementation of AI in customer service may not necessarily lead to job loss, as companies may be able to increase revenue and efficiency with their existing workforce, as seen in the Gucci example (30m52s).
• The use of AI in industries like healthcare may lead to improved customer relations, reduced doctor burnout, and increased mental health support, rather than job loss (31m21s).

Salesforce's Values and Commitment to Trust

• Salesforce prioritizes security, privacy, and trust, with a built-in trust layer in their platform and AI, ensuring that customer data is protected and not shared with data-hungry LLMs (31m56s).
• The company is built on core values, including the 1-1-1 model, which allocates 1% of equity, profit, and time to philanthropy, demonstrating their commitment to trust and responsibility (32m10s).
• Salesforce has given away over a billion dollars and provided 9 million hours of volunteerism, with 60,000 nonprofits running for free on their service, and 15,000 to 18,000 companies following their 1-1-1 model (32m18s).

Salesforce's AI Capabilities and Platform Evolution

• Salesforce has experience in AI, having previously introduced Einstein, and is now the largest AI provider in the world, with 2 trillion Enterprise AI transactions expected this week, and capabilities in predictive, generative, and agent AI (32m36s).
• The company's platform continues to evolve, allowing customers to focus on their business without having to change platforms, and Trailblazers are becoming more capable in what they can do for their customers (32m56s).
• is expected to be a significant year, with temporary CIO budgets becoming permanent, and agents are where the money is landing, with a lot of investment in this area (33m18s).
• Salesforce has an Agent Force Tour underway, with events in major cities such as Seattle, New York, and Chicago, where people can come and see the technology firsthand (34m3s).
• The company believes that the industry has hit a threshold in what computer science can do, and it's an exciting time for everyone to understand and be a part of (34m26s).

Salesforce Events and the Future of Computer Science

• Salesforce's events can be found on their website, and people are encouraged to attend to learn more about the technology and get hands-on experience (34m0s).