Salesforce (CRM) Faces Pressure on Seat License Model Amid AI Growth

Salesforce Inc. (NYSE: CRM) and ServiceNow Inc. (NYSE: NOW) may face challenges with their seat license business model as AI reduces the need for human software users. Todd Ahlsten of Parnassus Investments noted that companies could increase productivity without adding employee headcount, potentially impacting software licensing revenues. Consulting firm Bain & Company found that around 65% of SaaS vendors are adopting hybrid pricing models involving AI. Salesforce claims its top 10 AI-using customers increased spending by 1.5 times year-over-year, indicating that AI could still drive revenue but may not rely on traditional headcount growth.