Salesforce's Agentforce Adoption Lags, Impacting Annual Results
Wednesday, Feb 26, 2025 5:26 pm ET
Salesforce (NYSE: CRM), the world's leading AI crm platform, recently reported annual results that fell short of analysts' expectations, with Agentforce adoption lagging behind projections. The company's fourth-quarter revenue grew by 8% year-over-year (Y/Y) to $9.99 billion, while adjusted earnings per share (EPS) came in at $1.75, missing estimates. For fiscal 2026, salesforce projected full-year revenue of $40.5 billion to $40.9 billion and adjusted EPS of $11.09 to $11.17, also below analyst consensus.

The slower-than-expected adoption of Agentforce, Salesforce's AI-powered customer service platform, has contributed to the company's disappointing results. While Agentforce has handled over 380,000 conversations on help.salesforce.com, achieving an 84% resolution rate, the platform's growth has not met initial expectations. Several factors may be contributing to the slower adoption, including employee resistance, lack of early involvement, insufficient communication of benefits, and a lack of understanding about the importance of AI.
To address these challenges and accelerate Agentforce adoption, Salesforce should focus on the following strategic initiatives:
1. Address employee concerns and resistance: Salesforce should acknowledge and address employee concerns about job displacement openly and transparently. Emphasizing the augmentative nature of AI and highlighting the benefits for employees, such as freeing them from repetitive tasks and allowing them to focus on higher-value work, can help alleviate fears.
2. Involve employees in the implementation process: By including employees in the planning and implementation of Agentforce from the beginning, Salesforce can foster a sense of ownership and commitment. Encouraging employees to provide feedback and suggestions throughout the process can also help ensure the platform's success.
3. Communicate the "What's in it for me?" factor: Clearly communicating the advantages of Agentforce for employees, such as improved job satisfaction, skill development, and career growth, can help generate enthusiasm and support for the platform.
4. Educate employees about the importance of AI: Providing training and education on AI can help employees understand its potential and how it can empower them. Highlighting the growing importance of AI in the industry and the need for employees to embrace it to future-proof their careers can also be beneficial.

In addition to addressing Agentforce adoption challenges, Salesforce can drive future growth through strategic partnerships and initiatives, such as its recent expansion with Google Cloud. This partnership provides customers with more choice in AI models and capabilities, enhanced AI-enabled contact center capabilities, and access to advanced AI models and infrastructure. By leveraging these strategic initiatives, Salesforce can regain momentum and drive future growth.
In conclusion, Salesforce's annual results fell short of expectations due to slower-than-expected Agentforce adoption. To address these challenges and accelerate growth, the company should focus on addressing employee concerns, involving employees in the implementation process, communicating the benefits of Agentforce, and educating employees about the importance of AI. Additionally, strategic partnerships and initiatives, such as the recent expansion with Google Cloud, can help Salesforce regain momentum and drive future growth. By taking these steps, Salesforce can overcome the challenges it faces and continue to be a leader in the AI CRM market.