News: 0174989713

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Can AI Really Replace Salesforce and Workday? (theinformation.com)

(Friday September 13, 2024 @11:21AM (msmash) from the trillion-dollar-question dept.)


Can AI kill the enterprise software app industry that's led by companies such as Salesforce and Workday? [1]The Information :

> That's the trillion-dollar question at the heart of recent comments from the CEO of Klarna, Sebastian Siemiatkowski, who's made a name for himself -- and drawn some skepticism too -- as a chief cheerleader of OpenAI's software. In the latest example from a couple of weeks ago, Siemiatkowski told investors in his buy now, pay later firm that it's shutting down a lot of the enterprise software apps it uses, including some run by the above-mentioned CRM and HR firms, because it can replicate them with AI. SeekingAlpha [2]picked up those comments, which went viral in recent days.

>

> The idea behind the comments is the following: Conversational AI can understand natural-language commands and be ordered to write software code, so companies can cheaply and quickly build customized apps that do most of the things that traditional enterprise apps can do, especially if most of what those apps do is manage corporate data. Siemiatkowski [3]expanded on the comments in a Wednesday X post, saying he wasn't looking to primarily save money on software license fees "even though that is nice upside."



[1] https://www.theinformation.com/articles/can-ai-really-replace-salesforce-and-workday

[2] https://seekingalpha.com/news/4144652-klarna-shuts-down-salesforce-as-service-provider-workday-to-meet-same-fate-amid-ai-initiatives

[3] https://x.com/klarnaseb/status/1833969666860982741



No (Score:2)

by Baron_Yam ( 643147 )

I'm very confident that today's AI can't handle taking a client's data and process it in a useful way unless the client's data is so incredibly standardized that it has no deviations from the standard at all.

Typically, you need to have an intelligent understanding of the data schema because it is almost universal that something non-standard will have been hacked into place, and if not, they'll still want something non-standard from the output.

AI has the A but not the I. It'll do something, it might even be

The bandwagon is busy (Score:2)

by Hoi Polloi ( 522990 )

AI is barely out of the gate but every investor and ceo is foaming at the mouth thinking it is the answer to everything.

Re: (Score:2)

by Baron_Yam ( 643147 )

AI has more potential than 'blockchain', so there's that. But it's still only as there's no clear path to actual intelligence over the current appearance of it.

They forget the key feature... (Score:2)

by fropenn ( 1116699 )

...of outsourcing your software is when one of your employees does something really stupid that reveals confidential customer information or, say, just spitballing here, BSD's computers globally shutting down airlines and businesses all over the world...you can "blame the software supplier."

Re: They forget the key feature... (Score:2)

by oneiros27 ( 46144 )

Yep. the old 'no one ever got fired for hiring IBM', or Oracle, or whoever it is these days

Almost any large business could have done it cheaper by hiring competent programmers and doing the same work in house. Especially as almost all of those companies start raising their rates once they have your data and you're locked in

Nope - Deterministic algorithms are superior to ML (Score:3)

by Somervillain ( 4719341 )

If you can trust AI/ML to do the job, you didn't care about the job to begin with. Enterprise apps codify workflows and processes to ensure consistency. ML is designed to answer things that are difficult to impossible to answer with algorithms. You'd never have AI/ML determine if it's freezing outside. We have math for that. We use it for things that cannot be objectively determined with current methods, like "is this spam?" "is this nudity?" "is this a pedestrian?"

First of all OpenAI is an overhyped scam, but even if it worked as promised, it was never designed to codify process. AI, as we know it, is designed to augment algorithms...to handle edge cases, not replace well-codified processes. You NEVER want to use AI when conventional code will do. Conventional code is always superior. It is deterministic...ML really isn't. It's also very expensive and an ecological disaster from all the computing waste. Now in this case, are they using generative AI to write code?....well...

1. It has to work...it'll take just as much time, if not more, to verify...remember, if money is on the line, it has to actually work. Writing code that "works sometimes" is really fucking easy...any decent programmer can churn out code really fucking fast. Writing code that "works correctly"..."scales"...and most importantly, is maintainable down the road?...that's what you're paying for in delays (if the programmer is good).

2. You still have to maintain it. Is your business process set in stone? It never evolves? well...someone has to modify it...most businesses tweak their processes many times a year...that's why they hire developers, analysts, QA, etc. Generating code is really fucking easy....making a small change to working code?....really fucking hard and error prone. How much do you trust AI to make surgical changes without side effects?...a problem that vexes most highly skilled experienced developers with a LOT more contextual knowledge.

Don't fall for the sales pitch. If what he said was actually true, he wouldn't be telling you, he'd be showing you...There are literally TRILLIONS of dollars at stake. If he COULD do this...he'd be the richest human in history. You're hearing the modern day equivalent of someone telling you they've mastered alchemy and can turn lead into gold.

Kill? Maybe. Replace? No. (Score:2)

by gweihir ( 88907 )

At this time LLMs are still nothing but a massive hype with very few actual applications and they are all niche. All the big players are hemorrhaging money on AI. The only ones profitable are the hardware suppliers. And there is really no sane reason to expect this to change anytime soon.

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feet, we'll have 6 more weeks of Pro football."
-- Chuck Newcombe