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."

What you need to know

• Salesforce CEO Marc Benioff recently bashed Microsoft for its Copilot AI service.
• He claimed Microsoft's AI efforts are a "tremendous disservice" to the industry while referring to Copilot as the new Microsoft Clippy, further suggesting it doesn't work or deliver value.
• Benioff predicts the hype around Copilot will fade, potentially sending the service to the Microsoft Graveyard as its user base dwindles.

Microsoft is undoubtedly among the major key players in the AI landscape. Market analysts and experts are betting on the tech giant to become the world's most valuable company in the next five years . They attributed their predictions to Microsoft's strategic multi-billion partnership with OpenAI and 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. In an episode of the Rapid Response podcast dubbed "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."

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 agents last 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 of the ridiculous amount of electricity required to power the operations coupled with cooling 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, including Microsoft and NVIDIA, raised $6.6 billion , saving the AI firm from collapsing and pushing its market capitalization to $157 billion.

Interestingly, another report claims OpenAI might endure a massive $44 billion loss before seeing profit in 2029 , partly due to the Microsoft tie-up. This happens amid investors raising concerns about spending on AI projects with 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 predict Microsoft will buy OpenAI within the next 3 years . Besides, $7 trillion and many years to build 36 semiconductor plants and additional data centers isn't a small ask.

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