Salesforce CEO claims Microsoft has done a ‘tremendous disservice’ to the AI industry: “Copilot is just the new Microsoft Clippy. It doesn’t work or deliver value.”

Salesforce CEO claims Microsoft’s Copilot AI won’t be around for the long haul because it’s disappointing and doesn’t deliver value.

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What you need to know

What you need to know

Microsoft is undoubtedly among the major key players in the AI landscape. Market analysts and experts are betting onthe tech giant to become the world’s most valuable company in the next five years. They attributed their predictions toMicrosoft’s strategic multi-billion partnership with OpenAIand its early adoption and integration of AI across its tech stack.

However, Salesforce CEO Marc Benioff is of a different opinion on Microsoft’s trajectory in the AI landscape. Inan episode of the Rapid Response podcastdubbed “Salesforce can beat Microsoft in AI,” the CEO discussed the company’s efforts in the AI landscape, including a recap of the company’s just-concluded Dreamforce conference and Agentforce.

For context, Agentforce is Salesforce’s new tool designed to help build customized AI agents. Benioff claimed Salesforce is probably the largest AI enterprise supplier in the world, with the capability of doing “a couple of trillion AI transactions per week.” The CEO further claims the company’s Agentforce offering is what AI was meant to be while referring to client  feedback since shipping the entry:

“This must be witchcraft, this is crazy with what’s happening with my customers right now.”

Later in the interview, the host asked Benioff how Agentforce differs from Microsoft’s Copilot AI offering. “Microsoft has done a tremendous disservice not only to our whole industry but also all the AI research that has been done.”

According to Benioff:

“When you look at how Copilot has been sold to our customers, it’s disappointing. It doesn’t work. It spews data all over our floors, it doesn’t deliver value. I haven’t found a customer who has transformational work with Copilot. Copilot is just the new Microsoft Clippy.”

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The CEO claims unlike Microsoft’s confusing narrative, Saleforce’s Agentforce will make it possible for customers to see what is real and how easy it is to get value from AI with low hallucinogenic. “I don’t think Copilot will be around,” added Benioff. “I don’t think customers will use it.”

He predicts the transformation of enterprise with agents at the forefront. He further added that Agentforce will be the number one supplier of agents. “I think will have more than a billion agents running from Salesforce within the next 12 months.”

Microsoft unveiled Copilot agentslast month to help automate business processes and promote efficiency.

Who will win the AI arm’s race?

Based on recent events, it’s becoming clear that AI is an expensive venture. For instance,OpenAI spends up to $700,000 per day to keep ChatGPT running. This is on top ofthe ridiculous amount of electricity required to power the operationscoupled withcooling water.

The ChatGPT maker was reportedly on the verge of bankruptcy, with a $5 billion loss within the next 12 months lingering over its head. OpenAI found itself in a tough financial situation due to its exorbitant spending on AI model training and staffing. However, investors, includingMicrosoft and NVIDIA, raised $6.6 billion, saving the AI firm from collapsing and pushing its market capitalization to $157 billion.

Interestingly, another report claimsOpenAI might endure a massive $44 billion loss before seeing profit in 2029, partly due to the Microsoft tie-up. This happens amidinvestors raising concerns about spending on AI projectswith little profit to show. Investors will likely pull back from the AI hype, prompting them to channel their investments elsewhere.

At this point, startups like OpenAI might face difficulty generating enough revenue to fund their next-gen advances. Market analysts predictMicrosoft will buy OpenAI within the next 3 years. Besides,$7 trillion and many years to build 36 semiconductor plants and additional data centersisn’t a small ask.

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Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You’ll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.