After weeks of getting bashed, two software giants can make the case for why AI won't kill them
Business Insider
February 25, 2026
AI-Generated Deep Dive Summary
After facing significant challenges due to fears about AI replacing their roles in the market, two major software companies—Salesforce and Snowflake—are preparing to present their cases for why they remain essential despite these concerns. Both firms have seen their stock prices drop sharply this year, with Salesforce down 27% and Snowflake down 26%. As they report earnings, they aim to shift the narrative that AI will render them obsolete, a sentiment that has been fueled by speculative commentary from figures like Nassim Taleb and startups like Anthropic, which have capitalized on fears of AI disruption.
Salesforce, a leader in enterprise software with a focus on customer relationship management (CRM), is particularly vulnerable to AI automation. The company’s reliance on seat-based subscriptions makes it a prime target for AI tools that promise to streamline workflows. While Salesforce has developed its own AI agents, such as Agentforce, to compete, the platform has faced internal and external skepticism. Additionally, Benioff's recent controversial remarks at an employee event have further distracted from his company’s efforts to prove its resilience.
Snowflake, a data-warehousing giant, appears positioned to benefit from AI but faces its own set of challenges. The company excels in organizing and analyzing vast amounts of data, which is crucial for AI models. However, Snowflake's CEO has cautioned that as AI becomes more dominant, the company might be relegated to serving as a "dumb data pipe," a role with lower margins compared to being seen as critical software. This potential shift could impact its standing in customers' toolkits and its ability to maintain high pricing.
For readers interested in business, this story highlights the broader implications of AI disruption on established industries. While AI poses significant risks, it also creates opportunities for companies that can adapt and innovate. Salesforce and Snowflake are testing whether they can prove their value beyond being mere victims of technological change, making their earnings reports a pivotal moment for both firms and the software industry as a whole.
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Originally published on Business Insider on 2/25/2026