Slack CEO Is Ready to Ride AI Wave

 Lidiane Jones, CEO of Slack Technologies, speaks during a keynote at the 2023 Dreamforce conference in San Francisco, California, on September 14, 2023. (AFP)
Lidiane Jones, CEO of Slack Technologies, speaks during a keynote at the 2023 Dreamforce conference in San Francisco, California, on September 14, 2023. (AFP)
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Slack CEO Is Ready to Ride AI Wave

 Lidiane Jones, CEO of Slack Technologies, speaks during a keynote at the 2023 Dreamforce conference in San Francisco, California, on September 14, 2023. (AFP)
Lidiane Jones, CEO of Slack Technologies, speaks during a keynote at the 2023 Dreamforce conference in San Francisco, California, on September 14, 2023. (AFP)

Artificial Intelligence is transforming Slack, the widely used workplace messaging platform, its CEO told AFP just nine months after taking on one of the most high profile jobs in Silicon Valley.

Lidiane Jones was handed the reins to Slack after the departure of its co-founder and CEO Stewart Butterfield who exited two years after his company's acquisition by Salesforce, the San Francisco-based enterprise software giant.

Life at Slack after the blockbuster $27.7 billion transaction was not always smooth sailing and Jones, a former Microsoft executive who shot up the ranks in just a few years at Salesforce, was made chief executive to bring stability.

Jones took the job in January, only a few weeks after the launch of ChatGPT made the world aware of the superpowers of AI, and Slack has moved quickly to not fall behind, especially against its archrival Microsoft.

"It's amazing what has happened to the world," Jones said of this AI moment that has captured the imagination of Silicon Valley and the world.

"We've launched more features in the last nine months than in the several years before."

Brazilian-born and living in the Boston area, Jones was in San Francisco for "Dreamforce", Salesforce's big annual event to plug its new products and AI was on everyone's mind.

Many believe that tools such as Slack are first in line to be profoundly transformed by generative AI, which can produce texts, images and sounds on request in everyday language.

Originally designed to facilitate teamwork and internal communication, Slack, along with its equivalents such as Teams from Microsoft, have rushed out new versions supercharged by AI to act as something close to an online assistant.

"When I got back from my two-week vacation this summer, I had mountains of messages from customers and colleagues to catch up on," Jones said.

"I asked 'Slack AI' to summarize everything and in two hours I was up to date, instead of spending a whole day, or even the week."

She said this recourse to new AI tools works for summarizing all types of content or for fully automating complicated administrative tasks, like approving expenses or connecting users to in-house expertise.

Data is strength

Unlike Microsoft, users can also speak to generative AI chatbots directly within Slack from several providers, such as Claude from start-up Anthropic, and soon ChatGPT, from OpenAI.

This availability of a wide range of third-party apps and tools "is our strength", said Jones.

"We're quite different from Teams...We're first and foremost a very open platform."

The comparison to Teams is a sensitive one. In 2020, when still a startup, Slack filed a complaint at the European Union against Microsoft for bundling Teams in its hugely popular Office Suite.

With some 300 million monthly users, Microsoft's conversation and videoconferencing app surpasses Slack with its 12 million daily active users, according to data from 2019, the last time they were made public.

Microsoft acquiesced to many of Slack's demands in Europe, but the investigation by the EU continues and the Windows giant could yet face more fallout from European regulators.

But thanks to its major investments in OpenAI, Microsoft won a head start in generative AI.

But Jones insisted that Slack is equally suited to excel in AI thanks to the quality of its data, the key ingredient in the technology's magic formula.

"We have all of a company's knowledge on the platform... staff are collaborating across different departments, all of that unstructured data is there," she said.

"That makes our AI capabilities so powerful, because it has so much context," she added.

Won't 'reinvent the wheel'

For the time being, Slack has no plans to develop its own language model, the systems at the heart of generative AI that have made OpenAI a household name.

"We don't feel we need to reinvent the wheel," Jones joked, while reserving the possibility of one day designing a more specialized model.

On an even more distant horizon, Slack may one day develop highly personalized AI agents, sort of digital secretaries that know users down to their most personal detail.

"It is definitely a plausible future. And, look, I have a family, I work, it's very busy... Isn't it amazing to think that a system can track all of it in one place?"

"But it's gonna take time" to make people comfortable to do that, she said.

"I think there's a possibility and desire, but the trust boundary is going take a while for us to get there."



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.