How does RBC Capital Markets view AI's impact on Microsoft and Salesforce?

RBC believes Microsoft and Salesforce are well-positioned to benefit from AI, not threatened by it.

Is AI an opportunity or a threat to the software sector?

According to RBC, AI is an opportunity for growth, not an existential threat, especially for companies that proactively adopt it.

2 Big Misconceptions About AI's Long-Term Impact on Software

Rishi Jaluria, managing director at RBC Capital Markets, shares his thoughts on the software sector and the fear of AI disruption, pointing out two big misconceptions.

July 20, 2026

2 min read

Source: Yahoo Finance Video

In an interview with Yahoo Finance, Rishi Jaluria, managing director at RBC Capital Markets, shared his thoughts on the software sector and the fear of AI disruption.

Details

Jaluria highlighted two major misconceptions about AI's long-term impact on the software sector. First, the belief that AI will completely replace traditional software, whereas he believes it will enhance it. Second, the fear that large companies like Microsoft (MSFT) and Salesforce (CRM) will be negatively affected, but he thinks these companies are well-positioned to benefit from AI.

Context

These comments come amid growing concern in the software sector about AI's impact on traditional business models. However, Jaluria believes that companies that proactively adopt AI will be the long-term winners.

What It Means for Investors

For investors, Jaluria's analysis suggests that AI is not an existential threat to the software sector but rather an opportunity for growth. Companies that invest in AI and integrate it into their products may see significant competitive advantages.

Frequently Asked Questions

Some believe AI will completely replace traditional software and that large companies like Microsoft and Salesforce will be negatively affected, but analyst Rishi Jaluria argues the opposite.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.