"Snowflake CEO Sridhar Ramaswamy argues that business applications run the risk of simply being a 'dumb data pipe' for the 'big brain' of AI. Is this a valid concern? There is no doubt that this fear exists. Dark red stock prices for Salesforce, HubSpot, ServiceNow, and many other software companies over the past few months suggest that investors are anything but reassured."
"There must certainly be added value for these specialized agents, for example, that they are more accurate, operate more securely, and are easier to use. For experienced users of existing platforms, this is already the case. A solution such as NetSuite or Salesforce offers AI functionality as an extension of familiar systems, whereby adoption of these features almost always takes place without migration."
Centralized AI models that can access enterprise data risk turning business applications into passive data conduits unless applications provide distinct operational value. Model providers aim to make data universally accessible, enabling external AI to query the same datasets that embedded assistants use. Central data platforms and cloud warehouses partner closely with AI vendors and host models internally, reducing the need to rely on application-specific intelligence. Specialized application agents must therefore demonstrate advantages such as higher accuracy, stronger security, seamless usability, and avoidance of costly migrations. Ultimately, customer choice will determine whether organizations keep AI functionality inside applications or rely on centralized intelligence.
Read at Techzine Global
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