Salesforce (CRM) Winning On Customer Centricity and Generative AI

So what does Salesforce do that make them a contender in the AI Generative AI race? What is generative AI? In the field of artificial intelligence, Generative AI refers to algorithms that enable the creation of new plausible content from existing content, such as text, audio files, or images. In simple terms, It allows computers to identify patterns in input and then generate similar content based on those patterns.

In contrast to traditional artificial intelligence systems, generative AI is designed to produce a wide range of new content in the form of images, text, and audio. In addition, this differs from predictive AI, also known as supervised learning, which uses historical data to predict future outcomes.

If we look at the customers demographic for Salesforce, it covers a quite a well divided industry, and we could see that the main one is the services industry.

After years of research, artificial intelligence has reached a point that has captured the imagination of everyone, all over the globe. From students and Salesforce candidates to CEOs and industry leaders.

We could see that we are receiving news feeds that is filled with ChatGPT updates, AI tools, this is going to get more common as AI tools unlock new possibilities, excitement grows. Things are getting clearer as more and more enterprises start to explore these tools, seen what these tools can accomplish and how they work.

But how does Generative AI works? All these are make possible because the creation of new content was using generative adversarial networks (GANs). In a GAN, two neural networks are involved: a generator that generates new data and a discriminator that evaluates that data. Together, the generator and discriminator work to create content that is indistinguishable from real data as a result of the feedback they receive from each other.

If we simply use Artificial Intelligence as a standalone with the data that it is trained to use and power. Salesforce’s efforts to be one of the earliest CRM vendor to implement AI capabilities show that they have realised the potential of AI - Generative AI in enterprise software.

Salesforce begin their journey in September 2016 with the launch of Einstein, by combining Artificial Intelligence with its Software-as-a-Service (SaaS) solution, Salesforce has been able to provide predictive analytics, natural language processing (NLP), and machine learning capabilities to customers by using data gathered on every user action.

Here are some of the examples that I would think is significant:

Forecasting and lead and opportunity scoring improve sales by predicting whether a customer will buy a product.

In the context of customer service, it helps with case classification and routing so that retention or problems can be predicted.

In marketing, engagement scoring and predictive recommendations can help predict who is likely to engage with an email and increase conversion rates.

In commerce it helps increase revenue by predicting if a particular product is more or less likely to be purchased based on information about the customer.

If we looked at the department that are using salesforce in an organization, we could see that sales is the highest, followed by IT, which is the new trend as IT department are in charge of collaborative implementing solutions for the other departments.

With the integration of Einstein and generative artificial intelligence, Salesforce allow the ability to create smarter, more personalized chatbot that can understand, anticipate, and respond to customer questions.

This also include increasing first-time resolution rates by providing more accurate answers to nuanced customer queries, analysing customer resolution data to identify trends, drive continuous improvement, and accelerate bot training.

Because of the integration, the training of AI by Salesforce to automatically generate drafts of knowledge articles based on all the case notes employees write, greatly reducing the time to create and maintain them.

If the AI could have better quality and relevance of knowledge of the particular company, then the self-service portals and chatbots would be more useful and provide better value to the users. This can help to free up human employees to focus on complex issues and build long-term customer relationships.

As there have been talks about the trust and inaccuracy of information outputs, including false information, we need to be aware that while the current wave of generative models is very powerful, it is still necessary that we need to have a human intervention on board to prepare for any unforeseen circumstances.

With the publishing of five guidelines for trusted generative AI development in light of the considerable opportunities and challenges associated with this technology, this shows that Salesforce is ahead to address how generative AI can be implemented in enterprise technology and how to balance its transformative potential with its potential risks.

If we looked at how CRM has come back from its lows at the beginning of June, but there are still rooms to go higher which CRM have in mid May 2024.

With the focus shifting now from AI chips or hardware to AI enterprise software providers, CRM is one of the potential candidates I would look at.

From the technical indicators like MACD and KDJ, it is showing promising upside from MACD, and KDJ has been moving positively upwards. The J value is showing more potential upside coming.

I personally would think that this is time to look at getting CRM into our portfolio.

Salesforce has managed to ride on its long-standing expertise in artificial intelligence, combining generative AI models, they are able to help companies to operate more efficiently, respond more empathically to customer concerns, and resolve cases in a more timely manner.

This is what the next phase of Generative Ai would be like, it is into the end user consumption mode, so the focus is how well these AI enterprise software providers do in their sales.

For the technical side, CRM appear to be a potential buy now with upside potential coming soon.

Appreciate if you could share your thoughts in the comment section whether you think CRM could provide us upside with their strong software with generative Ai matured to provide solutions.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.