Klarna to Halve Workforce with AI, Plus Box CEO Post-Earnings 8/28/24

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Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.8 • 56 Ratings

🗓️ 28 August 2024

⏱️ 14 minutes

🔗️ Recording | iTunes | RSS

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Summary

Salesforce earnings tonight a major test of AI's impact on the software winter, especially after the CEO of Buy Now Pay Later giant Klarna said he aims to use AI to cut his workforce in half, and that he's shutting down a lot of SaaS providers, including Salesforce and Workday. Plus, Box shares are jumping after beating on the top and bottom lines and hiking their revenue outlook. We speak to CEO Aaron Levie on its partnership with Nvidia, AI strategy around utilizing data, the debate around regulating AI development and more.

Transcript

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0:00.0	Welcome back, Gay Clear, news signed today of how AI is reshaping companies, the CEO of
0:08.0	Binai Palat-Jayt a giant, Klana, saying on a call he expects AI to cut their workforce in half and cut their reliance on
0:14.8	major software companies one of which is reporting later today.
0:17.8	Deidreboza has more in today's Tech Check. Hey Dee.
0:21.0	Hey Wolf, I know you've been talking about this story, but I want to put it into some more
0:24.4	context and really where software in this AI race that continues to be the lager this year,
0:29.6	and a lot of folks are wondering when the benefits and the stock gains will flow to those companies
0:34.9	building AI features and services. A lot of SAS companies. A possibility that these
0:39.8	investors may have to consider is that this is years out or never.
0:44.0	Salesforce, which reports after the bell today, is a key barometer.
0:47.6	Mark Benyoff has spent the better part of the last few years, touting the benefits of
0:51.2	AI and how CRM is sitting on an AI gold mine, but it is reaping
0:55.9	none of the benefits yet.
0:57.7	Last quarter, Sales Force projected the slowest sales growth in its history and recent comments which you mentioned from the
1:03.7	clarinet CEO that could confirm the worst case scenario instead of seeing an
1:07.9	AI boost sales force and some other SAS names could be totally
1:11.6	disrupted I want to show you this slide from
1:14.0	Clarna's first-half investor update. Thanks to AI adoption the startup was able to
1:19.4	cut sales and marketing costs by 11% year over year.
1:23.0	Customer service costs, they were cut by 10%.
1:26.6	Yes, the company spending more on tech and product development,
1:29.4	but CEO Sebastian Simeikowski says that he's shutting down quote a lot of our SAS providers
	...

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