Salesforce’s (NYSE: CRM) Q4 results and guidance for 2025 failed to spark a rally but did nothing but improve the long-term outlook. The long-term outlook includes a dominating position in the AI services industry driven by new products, including Agentforce, and advances in existing AI technology, including Data Cloud. The two are driving a robust influx of new contracts, a multi-billion dollar revenue stream that has only begun to flow. Is AI still in its earliest stages? Of course, it is; the data center infrastructure to build all the models and support all the apps is still being built. Salesforce is ahead of the game in developing the technology and driving its adoption.
AI services and automation are serious opportunities for this company. The AI software services market value is estimated at $98 billion for 2024; the annual recurring revenue for Salesforce’s Data Cloud and AI at the end of Agent Force’s first quarter of availability was $900 million. That’s about 1% of a market forecast to grow at a 30% CAGR, in which Salesforce takes a share. CRM’s AI and Data Cloud ARR is up 120% year-over-year on client wins and penetration, expected to remain solid in 2025. Regarding the AI software services market, it is expected to sustain a 30% CAGR through 2030 and grow 4x in that time.
