Software company Salesforce Inc’s CRM shares are ticking higher after the company announced London as the location for its first artificial intelligence (AI) center.
Salesforce shares are trading higher by 3.36% at $244.64 at last check Thursday.
What Happened: The company’s facility aims to foster collaboration among industry experts, developers, and customers, facilitating innovation and skill development in AI, reported Reuters.
Salesforce is hosting 18,000 attendees at its annual London World Tour event on Thursday. A year ago, the U.S. cloud software company announced a $4 billion investment in Britain over the next five years, with a focus on advancing AI technologies.
Zahra Bahrololoumi, chief executive of Salesforce U.K. and Ireland, highlighted the enthusiasm among customers regarding AI’s potential benefits, coupled with a cautious approach to emerging risks.
“No company will adopt AI unless they can trust it, which is why we are so well positioned,” she said, referring to Salesforce’s Einstein technology that includes a “Trust Layer” to protect customer data.
Related Read: Snowflake CEO Targets AI Acquisitions To Boost Growth: Report
Why It Matters: Salesforce is “sending a clear message to customers and partners on AI,” Bahrololoumi emphasized.
The goal is to work closely with customers and partners to harness AI’s transformative potential responsibly.
Salesforce is “deeply committed to working closely together so that you can reap the rewards of this transformative technology, while ensuring it is a force for good,” Bahrololoumi said.
In May, Salesforce posted its first quarterly revenue miss since 2006, along with providing a softer-than-expected guidance.
Analyst Reaction: Goldman Sachs analysts find Salesforce to be "an under-appreciated generative AI winner.” There is room for meaningful margin expansion, they say.
Price Action: Salesforce stock has gained about 11% in the last 12 months. Investors can gain exposure to the stock via IShares Expanded Tech-Software Sector ETF IGV and First Trust Dow Jones Internet Index Fund FDN.
Disclaimer:This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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