Marc Benioff downplays software apocalypse fears: 'It may be eaten by the SaaS-quatch'

Business Insider

February 26, 2026

AI-Generated Deep Dive Summary

Marc Benioff, CEO of Salesforce, has dismissed fears of a "SaaSpocalypse," an imagined scenario where artificial intelligence (AI) wipes out software-as-a-service (SaaS) companies. During Salesforce's Q4 earnings call, Benioff humorously suggested that if such an event were to occur, it might be "eaten by the 'SaaS-quatch'" due to the resilience and adaptability of SaaS platforms. He emphasized that this is not the first time the industry has faced challenges, referencing past difficulties like the 2020 pandemic. Benioff's comments come amid rising concerns about AI's impact on SaaS companies. The release of agentic AI tools by Anthropic and a recent research report forecasting an AI-driven recession have spooked investors, causing a dip in software stocks, including Salesforce and Asana. However, Benioff argued that Salesforce's focus on AI agents, particularly its Agentforce platform, is driving demand and countering potential threats. He also highlighted that leading AI companies like Anthropic rely heavily on Salesforce and Slack for their operations. The CEO's remarks resonated with investors, as Salesforce shares rose by about 2% following the call. Benioff's tone of confidence reflects a broader effort among SaaS leaders to reassure stakeholders. Workday CEO Aneel Bhusri echoed similar sentiments during his company's earnings call, noting that AI companies like Anthropic and OpenAI depend on traditional software systems for critical functions such as HR and ERP (enterprise resource planning). Bhusri emphasized the complexity and security requirements of these systems, suggesting that AI alone cannot replace them. This matters to business readers because it addresses concerns about the future viability of SaaS platforms in an increasingly AI-driven world. Benioff's assurances highlight the adaptability and strategic focus of leading tech companies, which may help stabilize investor confidence. The broader context underscores the ongoing tension between innovation and tradition in the

Verticals

businessfinance

Originally published on Business Insider on 2/26/2026