When AI assistants replace apps: Enterprise software vendors face long-term risks, Bank of America says Microsoft Corporation (MSFT.US) has already seized the initiative.

Bank of America Corp said in a report that if AI assistants become the mainstream way people use software, it could deal a blow to enterprise software vendors, though the bank believes Microsoft Corporation (MSFT.US), Salesforce, Inc. (CRM.US), and ServiceNow (NOW.US) are well positioned to adapt to the shift. The brokerage noted that once users move to conversational AI interfaces, they may no longer need to directly open various applications. Even enterprises that hold data and business processes will face long-term risks as a result. The report also mentioned that leading AI labs could potentially move into the application layer in the future, creating competition. Bank of America said that leveraging the massive channels brought by Office, Teams, Outlook, and Windows, combined with its Copilot product strategy, Microsoft Corporation has a standout advantage in capturing the next-generation interaction interface. As for Salesforce, Inc., Bank of America believes it is pursuing a "dual-track" strategy: on one hand, using Slack to control the user interaction entry point, and on the other, opening up its own data and business processes for third-party AI interfaces such as Claude (Anthropic) to call upon. But this approach could weaken the influence of Salesforce, Inc.'s own interface. Analysts said: "Therefore, we believe Salesforce, Inc.'s approach is a pragmatic hedge: rely on Slackforce as much as possible to hold the interaction entry point, while opening external interface access and keeping data and business context within the enterprise." Bank of America analyzed that ServiceNow may not necessarily need to control the interaction interface, provided it can continue to control the underlying governed business processes and execution layer. The report also mentioned that Workday (WDAY.US) faces a lower risk of being replaced, but faces greater pressure to justify increased spending on its own AI interface, due to limited IT budgets.