In a bold move, Salesforce CEO Marc Benioff has publicly criticized Microsoft’s AI tools, branding them as “overhyped” and “underperforming.” The outspoken executive targeted Microsoft’s Copilot AI tool, claiming it’s ineffective and prone to data leaks. Benioff’s remarks come as a direct response to Microsoft’s recent unveiling of new Dynamics 365 AI agents, which directly compete with Salesforce’s own AI agent product, Agentforce.
The timing of Benioff’s criticism is no coincidence. Just a day before his interview with Business Insider, Microsoft announced 10 new AI agents for its Dynamics 365 CRM offering. This announcement came mere days before the release of Salesforce’s Agentforce, which is set to be generally available on Friday. Benioff asserted that Microsoft has “really disappointed so many of our customers” by creating unrealistic hype around their AI solutions. He further criticized the accuracy of Copilot, stating that it “spills corporate data” and jokingly labeling it “Clippy 2.0,” a reference to the infamous 1990s Microsoft Office digital assistant.
Benioff’s comments underscore the growing rivalry between Salesforce and Microsoft in the AI-driven CRM market. Both companies are aggressively pushing their own AI solutions, each claiming to offer the most robust and secure platform for businesses. Benioff highlighted the success of Salesforce’s own AI solutions and reiterated the company’s continued dominance in the CRM market. Despite Microsoft’s recent gains in CRM market share, Benioff expressed confidence in Salesforce’s position.
The tension between the two tech giants reached a new peak when Microsoft rebranded Copilot as “agents.” Benioff viewed this move as a sign of “panic mode” due to Microsoft’s alleged lack of data and security models, which he believes leads to inaccuracies and data leaks. In contrast, he lauded Salesforce’s Agentforce for seamlessly integrating data, workflows, and security into a unified platform.
Microsoft’s recent “AI Tour” in London saw them emphasize the ability of businesses to develop autonomous AI agents using their Copilot Studio platform. This allows organizations to customize AI-driven agents to streamline enterprise functions. Analysts have noted that Salesforce’s Agentforce platform is on par with Microsoft’s offerings, with Piper Sandler upgrading Salesforce’s rating and raising its price target.
