NEW YORK — Investors are increasingly separating the winners from the losers in the AI software market as companies take very different approaches to the technology.
Recent results from cybersecurity company CrowdStrike and software giant Salesforce have strengthened investor interest in companies demonstrating measurable demand for AI-powered products. CrowdStrike shares surged after its earnings report, while Salesforce has also benefited from stronger bookings and demand for its AI platform.
Investors Want Evidence AI Can Make Money
The AI investment boom has created enormous expectations for software companies.
But investors are beginning to ask a more specific question: which companies can actually turn AI into revenue?
Cybersecurity is one area where AI can have a direct commercial application.
Security companies can use AI to identify suspicious activity and help analysts respond more quickly.
That can provide a measurable benefit for customers.
Salesforce is taking a different approach by integrating AI agents into its enterprise software.
The company is attempting to make AI part of everyday business workflows.
That strategy could potentially increase the value of existing software subscriptions.
However, not every software company has been able to demonstrate similar momentum.
Some investors fear AI could actually reduce the value of traditional software products by allowing businesses to automate tasks that previously required specialized applications.
That creates a major divide within the technology sector.
Companies that use AI to strengthen their products may benefit.
Companies whose products can be replaced by AI could face pressure.
The distinction is becoming increasingly important for U.S. investors.
Rather than buying technology stocks simply because they have an AI strategy, investors are increasingly examining revenue growth, customer adoption and profitability.
That could make the next phase of the AI market much more selective.
