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Salesforce Reveals It Was “Too Optimistic” About AI after Cutting 4,000 Jobs

Salesforce, the global SaaS giant, has acknowledged that it overestimated how effectively AI could replace human roles, especially in customer support. This comes after the company laid off nearly 4,000 employees, reducing its support workforce from roughly 9,000 to about 5,000, citing AI automation as the reason.

But in a rare moment of candor, Salesforce’s SVP of Product Marketing, Sanjna Parulekar, said that the company was “more confident about large language models a year ago.”
In other words: AI didn’t perform as reliably as they expected.

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Automation Didn’t Deliver the Way Salesforce Anticipated

Salesforce deployed AI agents (including tools under the Agentforce suite) to replace parts of its frontline support operations.
However, real-world behavior of generative AI exposed limitations:

1. AI became unreliable with complex instructions

LLMs performed well for simple tasks. But as instructions grew more detailed, models began skipping steps, improvising, or producing inconsistent responses, unacceptable for business-critical workflows.

2. Customers started complaining

Issues like missing support surveys and unpredictable AI behaviors led to customer dissatisfaction.
This contradicted the idea that AI agents could fully replace human support at scale.

3. The hype didn’t match the operational reality

Executives realized that probabilistic AI (LLMs) often lacks the precision and guardrails required for enterprise automation.

Salesforce stock is down 23% since start of the year. Source: Google Finance

The Role of AI in Workforce Replacement vs. Redefining Business

Salesforce’s shift reveals broader industry patterns:

  • AI augments humans, but can’t fully replace them yet.
  • Companies are moving toward deterministic workflows (predictable, rule-based automation) instead of depending entirely on generative AI.
  • Leaders are recalibrating expectations after a year of aggressive AI-first strategies.

This is a major acknowledgment:
Even the companies building AI tools are reconsidering how far AI can realistically go today.

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What Salesforce Is Doing Next

Rather than doubling down on generative AI for everything, Salesforce is now:

  • Prioritizing predictable automation systems for mission-critical tasks
  • Keeping humans in the loop
  • Positioning AI as an enhancement, not a replacement
  • Focusing on reliability over hype

This balanced approach is likely to influence how companies adopt AI in 2025 and beyond.


What This Means for Working Professionals

If you’re a mid-career professional in tech, business operations, customer success, finance, or similar fields, this shift has clear implications:

– AI literacy is essential

Understanding how to use AI tools matters more than fearing replacement.

– Human judgment still beats AI in ambiguous or relationship-driven work

Roles requiring nuance, decision-making, context, and empathy remain hard to automate.

– Upskilling is now a differentiator

Being able to work with AI, not against it is becoming a core career advantage.


Closing Note: The Future Is Hybrid Humans + AI

Salesforce’s admission is an important reminder:
AI is powerful, but not omnipotent. Human expertise still anchors the workforce.

The smartest professionals will combine both, scaling their capabilities with AI while leaning on human strengths that automation can’t touch.

Original article:
https://www.msn.com/en-in/money/news/after-laying-off-4-000-employees-and-automating-with-ai-agents-salesforce-executives-admit-we-were-more-confident-about/ar-AA1SPol1

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