What just happened? As more AI platforms come to market, vendors are jockeying to position their offerings as the best. That rivalry may be behind Salesforce CEO Marc Benioff's recent disparaging comments about Microsoft Copilot. But he is not the first to voice complaints about the product.
Salesforce CEO Marc Benioff has strong opinions about Microsoft's Copilot AI, claiming it has fallen short of customer expectations and failed to deliver the promised value. During Salesforce's second-quarter earnings call, Benioff stated that many customers are disappointed with Copilot's accuracy and responsiveness, adding that Microsoft has let down numerous clients with its AI offerings.
In response to Benioff's comments, Jared Spataro, Microsoft's corporate VP for AI at work, told Fortune that they are receiving positive feedback from customers. He cited a 60% increase in Copilot customers and a doubling of daily users in the last quarter.
But Benioff doubled down on his position on Copilot during an interview that took place during Salesforce's recent Dreamforce conference. "We all know now that Microsoft Copilot is basically the new Microsoft Clippy, that customers have not gotten value from it," he said.
Benioff's critique comes as Salesforce prepares to launch its own AI platform called Agentforce. Set to debut in October, Agentforce will initially focus on sales and customer service. Some major clients, including ADP, OpenTable, and Wyndham, are already using Agentforce.
Benioff claims that Agentforce AI agents are resolving over 90% of ADP's customer service inquiries. The Salesforce CEO predicts that Agentforce will represent a significant leap forward in AI technology for their customers. Unlike Copilot, he said, Agentforce offers a fully integrated platform approach, criticizing Microsoft for promoting a DIY model that he believes is costly and ineffective for customers.
Of course, Benioff's comments come amid growing competition in the AI space, with major tech companies vying for dominance in enterprise AI solutions.
To be fair, there are some fundamental differences between Agentforce and Copilot. Agentforce uses autonomous AI agents that can work independently with minimal human input, while Copilot is more of an AI assistant that works alongside humans.
Such distinctions between the various platforms may be the source of Copilot's problems with its customers.
Launched in 2023, Microsoft Copilot integrates OpenAI's ChatGPT technology into Microsoft 365 applications like Word, Excel, and PowerPoint. A chief complaint by customers is that it does not stack up well against ChatGPT, according to Business Insider, which cited employees with direct knowledge of customer feedback.
"Every time a customer starts using it, they start comparing it to ChatGPT and saying, 'Aren't you guys using the same technology?'" one of the people said.
In response, Microsoft explained that customers don't understand the differences between ChatGPT and Copilot: Copilot for Microsoft 365 is built on the Azure OpenAI model, combining OpenAI's large language models with user data in the Microsoft Graph and the Microsoft 365 apps. Microsoft says this means its tools have more restrictions than ChatGPT, including only temporarily accessing internal data before deleting it after each query.
Microsoft employees also told BI that Copilot for Microsoft 365, the version that has reached most customers so far, has received mixed to slightly positive feedback.