Workday CEO dismisses concerns that AI is destroying software

Investing.com -- Workday CEO Carl Eschenbach called concerns about artificial intelligence destroying software business models "overblown" during an interview on CNBC’s "Squawk Box" Thursday.

Speaking from the World Economic Forum in Davos, Switzerland, Eschenbach described AI as a tailwind for Workday, stating it is "absolutely not a headwind" for the company.

Software stocks have declined in recent months amid fears that new AI tools could disrupt the sector and replace established recurring revenue streams that previously generated substantial profits.

Eschenbach explained that customers are turning to Workday for more AI tools and its first-party data, which the company is using to maintain an advantage over third-party tools.

Many software companies have been investing in additional capabilities to enhance their AI stacks and address competitive AI pressures.

"We are uniquely positioned to be one of the AI winners in the enterprise because of our incumbency, and lastly, because of the trust we get from our customers," Eschenbach said.

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