Software Giants Turn AI Threat Into a New Revenue Stream

The software industry spent much of the year fearing that artificial intelligence would make its products obsolete. Now, some of the world’s biggest software companies are using AI to create new revenue instead.

The change in sentiment was stark at Salesforce. Shares of the world’s largest customer relationship management company jumped 22.6% on Aug. 27, the biggest one-day increase since 2020. Salesforce reported double-digit revenue growth for its fiscal second quarter, covering May through July, and unveiled Claudeforce, a system developed with AI company Anthropic that links Claude to Salesforce’s platform.

Chief Executive Mark Benioff said after the earnings release, “It’s time to stop the nonsense about a SaaSpocalypse.” The phrase refers to fears that AI agents, which can operate computer systems and handle complex tasks, would reduce the number of people directly using subscription software at work. Those fears intensified in February, when software companies including Salesforce and Adobe lost a combined $285 billion in market value in a single day.

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It’s time to stop the nonsense about a SaaSpocalypse.

A different view is now gaining ground: AI may operate on top of existing software rather than replace it. To check customer information, an AI system needs access to Salesforce’s CRM. To create documents or send emails, it may need Microsoft’s workplace software. Because established software companies control corporate data and workflows, the spread of AI could increase the use of their platforms.

The companies are also changing how they charge. Instead of billing only for the number of employee accounts, Salesforce is expanding fees based on how much work its AI completes. Microsoft has added AI usage charges to its user-based pricing, while Adobe’s Firefly tools consume credits when users generate images and other content. Security companies are seeing a similar reversal. As more AI agents gain access to email, customer information and internal systems, the number of assets that companies must protect is growing.

The shift does not benefit every software provider. Companies offering simple functions that AI can easily perform remain exposed. Analysts say businesses with control over customer data and essential workflows are better placed because AI must pass through their systems to do its work.

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The ability to connect AI models with existing corporate systems and let them use the functions they need is becoming more important.