© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Dive Brief:

• Salesforce updated its AI acceptable use policy to place guardrails around its AI services, according to a document published Wednesday. The update comes amid increased industry scrutiny over generative AI data use.
• Customers are not allowed to leverage the company's AI products — or any third-party services linked to Salesforce services — for purposes related to child abuse, deepfakes, prediction of protected categories or automating decisions with legal effects, among other use cases.
• "These policy updates allow customers to use Salesforce products with confidence, knowing they and their end users are receiving a truly ethical AI experience from product development to deployment," said Paula Goldman, chief ethical and humane use officer at Salesforce, in a blog post Wednesday.

Dive Insight:

The policy update from Salesforce is the latest effort from the provider to address the risk concerns of would-be enterprise technology adopters. 

In June, the company rolled out Einstein GPT Trust Layer, a service designed to let customers access enterprise-ready data security and compliance safeguards while leveraging generative AI tools. 

"The GPT Trust Layer gives connected LLMs secure, real-time access to data without the need to move all of your data into the LLM itself," said Marc Benioff, Salesforce chairman and co-CEO, speaking in May during the company's Q1 2024 earnings call. "While they're using the LLMs, the data itself is not moving and being stored in the LLM. That is what our customers want."

As enterprise adoption of generative AI advances, more than half of IT leaders say inaccuracies and cybersecurity are associated risks of the emerging technology, according to a report from QuantumBlack, AI by McKinsey. 

Salesforce, with its guidelines clearly stating usage limitations, is showing leadership among the provider ecosystem in terms of responsible AI, according to Juliette Powell and Art Kleiner, professors at New York University.

"On the surface, the new policy may look unenforceable, but it's an addition to Salesforce's Acceptable Use and External Facing Services Policy, which clearly states that violators could lose their Salesforce licenses," the professors said via email. "It will be really interesting to see which companies are targeted first." 

The new policy from Salesforce comes as another major provider updated its own terms of service in response to criticisms over data use. 

Zoom updated its terms and conditions to clarify the provider would be able to access customer content for safety and legal purposes, but not use any customer data to train third-party or its own AI models. 

Kori O’Brien, SVP Alliances and Partner Sales, Salesforce

For many of us, the most jarring part of the COVID-19 crisis is the uncertainty. How long will it last? How will it change us? And what will our world look like when it’s finally over?

“The only thing that seems certain is that the future will surprise us,” said Andrew Blau, managing director of Deloitte Consulting LLP.

Blau and a group of “scenario planning” leaders— technology pioneers, Global Business Network founders, inaugural editors of Wired, and heads of NGOs and philanthropic organizations—recently came together to tackle these questions and map out four possible scenarios for business leaders to assess. Their report, The world remade by COVID-19; Planning scenarios for resilient leaders, is a joint effort by Deloitte and Salesforce.

“Scenario planning is a tool that helps leaders think about and manage uncertainty to make better decisions,” Blau said. “Scenarios are stories designed to show choices you might not have seen before. They allow you to see possibilities in the future by focusing on what’s really uncertain, rather than what is certain, and how those uncertainties add up in surprising ways.”

Here are the four scenarios they outlined, taking into account the technological, environmental, economic, political, and social effects of the COVID-19 crisis over the next few years.

1. The Passing Storm - In this best-case scenario, governments around the world collaborate and communicate swiftly and impactfully. Health systems respond effectively. Society complies with quarantine regulations. We collectively eradicate the illness sooner than anticipated. Even though we call it “the passing storm,” it’s a storm that leaves a serious impact, especially for small businesses and the low- to middle-income population, who may struggle to recover.
2. Good Company - As governments struggle to handle the unprecedented pandemic, large companies step in to fill the void. A surge of public-private sector partnerships emerge as companies raise their hands as part of the global solution, serving customers, employees, communities, and shareholders. It’s a scenario in which trust in companies is renewed and the relationship between the public and private sectors is remade.
3. Sunrise in the East - China and other East Asia countries manage the disease more effectively, causing the global center of power to shift. The East becomes the leader in global coordination of health systems and businesses. Their strong, centralized governmental response—including direct foreign investments intended to mitigate the pandemic—becomes the “gold standard.” People begin to accept greater surveillance as a necessity to safeguard their health and the health of their loved ones..
4. Lone Wolves - This worst-case scenario imagines a world where the disease feels out of control for longer than we’re prepared for. The lack of coordination allows the virus to keep spreading, returning to places that thought they were safe. Growing anxiety and economic distress drive social unrest and loss of faith in institutions of all kinds. Countries isolate themselves, shorten supply chains, and restrict trade and travel in the name of safety.

Faced with these four scenarios, here are the questions leaders may ask themselves.

1. Which of your previous expectations need to be rethought?
2. What are the biggest threats to your current business in these worlds?
3. What would you need to do differently if any of these scenarios becomes the future?
4. Which scenario best describes the world your organization appears to be preparing for?

Blau was quick to caution that these possible scenarios are not predictions.

“In fact, I think of them as the antidote to predictions,” he said. “They’re a structured way of thinking about what might happen. You are much more resilient if you are prepared for a range of possibilities.”

In addition to partnering with Salesforce for The World Remade report, Deloitte has recently developed and deployed a number of technology assets, to help their clients and communities to manage the impacts of COVID-19 including ConvergeHEALTH™ Connect for Crisis Response, GovConnect: Community Resource Engine, and ConvergeHEALTH™ Connect for Public Sector.

At Salesforce, taking care of one another is our first priority. We developed Salesforce Care, a set of free rapid response solutions, to help companies stay connected to their employees, customers, and partners right now. Since launching, more than 3,700 companies from 47 countries have signed up. Visit salesforce.com to learn more.

In an exciting announcement, Salesforce has introduced Einstein Studio, empowering users to create and deploy their bespoke AI models. This innovation opens doors for businesses to harness AI’s potential in a personalized and tailored manner, driving enhanced insights and efficiency.

Einstein Studio is designed to offer a user-friendly environment for building AI models that suit specific business requirements. This cutting-edge platform empowers users to take charge of their AI journey, even without extensive technical backgrounds. By combining intuitive tools and robust capabilities, Einstein Studio ensures that the power of AI is accessible to a broader spectrum of professionals.

With Einstein Studio, companies can tailor AI models to match their unique data and challenges. This level of customization allows for a deeper understanding of customer behaviors, more accurate predictions, and optimized decision-making processes. The ability to deploy these custom models directly within the Salesforce ecosystem enhances user experiences and drives intelligent automation across various touchpoints.

Furthermore, Einstein Studio’s integration within the Salesforce platform simplifies the deployment process. This seamless integration eliminates the need for complex integrations, ensuring that businesses can swiftly implement their custom AI models into their existing workflows. In this case, Salesforce integration services are becoming very significant. 

This announcement underscores Salesforce’s commitment to democratizing AI and making it a practical tool for businesses of all sizes. By putting the power of AI model creation and deployment in the hands of users, Einstein Studio empowers organizations to unlock new dimensions of growth and innovation.

In the rapidly evolving landscape of AI, Einstein Studio stands as a testament to Salesforce’s dedication to staying at the forefront of technological advancements. This tool not only amplifies the capabilities of businesses but also reinforces Salesforce’s position as a leader in providing solutions that bridge the gap between technology and business needs.

In conclusion, the unveiling of Einstein Studio marks a significant stride in the AI arena. Businesses now have the means to develop and implement AI models that resonate with their unique objectives, fostering better insights and smarter decision-making. As this cutting-edge platform becomes an integral part of the Salesforce ecosystem, it ushers in a new era of customized AI solutions that drive success across industries.

The stock of Salesforce Inc. (CRM) has seen a -1.43% decrease in the past week, with a -8.34% drop in the past month, and a -0.63% decrease in the past quarter. The volatility ratio for the week is 2.09%, and the volatility levels for the past 30 days are at 1.91% for CRM. The simple moving average for the last 20 days is -3.11% for CRM stock, with a simple moving average of 14.47% for the last 200 days.

Is It Worth Investing in Salesforce Inc. (NYSE: CRM) Right Now?

Salesforce Inc. (NYSE: CRM) has a higher price-to-earnings ratio of 550.08x compared to its average ratio, and the 36-month beta value for CRM is at 1.20. Analysts have varying views on the stock, with 31 analysts rating it as a “buy,” 3 rating it as “overweight,” 15 as “hold,” and 1 as “sell.”

The average price suggested by analysts for CRM is $240.71, which is $32.35 above the current market price. The public float for CRM is 943.32M, and currently, shorts hold a 0.79% of that float. The average trading volume for CRM on August 22, 2023 was 6.50M shares.

CRM) stock’s latest price update

Salesforce Inc. (NYSE: CRM)’s stock price has increased by 2.05 compared to its previous closing price of 204.83. However, the company has seen a -1.43% decrease in its stock price over the last five trading sessions. Zacks Investment Research reported 2023-08-21 that Salesforce.com (CRM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock’s prospects.

Analysts’ Opinion of CRM

Many brokerage firms have already submitted their reports for CRM stocks, with Morgan Stanley repeating the rating for CRM by listing it as a “Equal-Weight.” The predicted price for CRM in the upcoming period, according to Morgan Stanley is $278 based on the research report published on July 31, 2023 of the current year 2023.

CRM Trading at -3.30% from the 50-Day Moving Average

After a stumble in the market that brought CRM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.25% of loss for the given period.

Volatility was left at 1.91%, however, over the last 30 days, the volatility rate increased by 2.09%, as shares sank -7.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -0.24% lower at present.

During the last 5 trading sessions, CRM fell by -1.43%, which changed the moving average for the period of 200-days by +30.79% in comparison to the 20-day moving average, which settled at $214.91. In addition, Salesforce Inc. saw 57.65% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at CRM starting from Benioff Marc, who sale 15,000 shares at the price of $205.12 back on Aug 17. After this action, Benioff Marc now owns 16,086,166 shares of Salesforce Inc., valued at $3,076,807 using the latest closing price.

Benioff Marc, the Chair and CEO of Salesforce Inc., sale 15,000 shares at $208.23 during a trade that took place back on Aug 16, which means that Benioff Marc is holding 16,101,166 shares at $3,123,394 based on the most exact closing price.

Stock Fundamentals for CRM

Current profitability levels for the company are sitting at:

• +5.93 for the present operating margin
• +65.09 for the gross margin

The net margin for Salesforce Inc. stands at +0.66. The total capital return value is set at 2.55, while invested capital returns managed to touch 0.29. Equity return is now at value 0.60, with 0.40 for asset returns.

Based on Salesforce Inc. (CRM), the company’s capital structure generated 25.50 points at debt to equity in total, while total debt to capital is 20.32. Total debt to assets is 14.50, with long-term debt to equity ratio resting at 22.02. Finally, the long-term debt to capital ratio is 17.55.

When we switch over and look at the enterprise to sales, we see a ratio of 6.27, with the company’s debt to enterprise value settled at 0.09. The receivables turnover for the company is 2.89 and the total asset turnover is 0.31. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.95.

Conclusion

In conclusion, Salesforce Inc. (CRM) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.