Salesforce Pushes Back on ‘SaaSpocalypse’ Fears, Says AI Agents Are Powering Growth

Salesforce has firmly rejected growing speculation that artificial intelligence could derail the software-as-a-service (SaaS) business model. Instead, the company argues that AI agents are making SaaS platforms more powerful and indispensable for enterprises worldwide.

Speaking during the company’s fourth-quarter earnings call, Salesforce CEO Marc Benioff addressed concerns about what some investors have labelled a “SaaSpocalypse” — the idea that AI-driven systems could reduce the need for subscription-based enterprise software. According to Benioff, such fears misunderstand how businesses are actually deploying AI tools.

“You’ve heard about the SaaSpocalypse? And it isn’t our first. We’ve had a few of them,” he said during the call. Later, he added, “If there is a SaaSpocalypse, it may be eaten by the Sasquatch because there are a lot of companies using a lot of SaaS because it just got better with agents."

The comments came alongside strong financial results that the company believes reinforce its position. Salesforce reported $10.7 billion in revenue for the fourth quarter, reflecting a 13 per cent year-on-year increase. For the full fiscal year, revenue reached $41.5 billion, up 10 per cent. Net income stood at $7.46 billion.

Part of this growth was supported by Salesforce’s $8 billion acquisition of Informatica last year, which expanded its data management capabilities. Looking ahead, the company forecast revenue between $45.8 billion and $46.2 billion for the coming year, signalling confidence despite market volatility.

However, investor unease persists. In recent weeks, SaaS stocks have faced pressure amid concerns that AI agents might replace traditional per-seat or per-employee subscription models. Critics argue that if AI systems can automate workflows independently, companies may require fewer software licences.

Salesforce counters that AI agents are not replacing SaaS — they are enhancing it. To demonstrate this, the company not only highlighted its earnings but also announced a nearly 6 per cent increase in its quarterly dividend to $0.44 per share and unveiled a $50 billion share buyback programme. Such measures are typically aimed at reinforcing shareholder confidence and signalling strong cash flow.

The company also shifted the tone of its earnings presentation, blending financial updates with live product demonstrations and customer endorsements. Senior leaders from SharkNinja, Wyndham Hotels and Resorts, and SaaStr joined the discussion to share how Salesforce’s AI-powered agents are helping automate workflows and improve efficiency.

In a move to quantify the value of these AI capabilities, Salesforce introduced a new performance metric called agentic work units (AWU). Rather than measuring AI performance through token usage, AWU tracks whether an agent successfully completes a tangible business task — such as updating customer records or executing workflows.

Salesforce president and CMO Patrick Stokes explained the rationale: “You can ask it a question and it can write you a poem, but that’s not really all that valuable in the enterprise world.”

At the core of Salesforce’s vision is the belief that SaaS platforms will remain the system of record, controlling enterprise data and workflows, while AI models function as flexible, interchangeable layers operating in the background. This contrasts with AI-first companies that place artificial intelligence at the centre of enterprise architecture.

For Salesforce, the message is clear: AI agents are not dismantling SaaS — they are redefining and strengthening it.