AI Monetization Drives Salesforce Stock Upgrade

AI monetization is drawing investor attention as Salesforce expands Agentforce, reports revenue growth and receives a Bank of America stock upgrade

Salesforce shares gained 3.5% on October 12 after Bank of America changed its rating on the stock from Underperform to Buy. The bank sees room for growth as the company works to turn its artificial intelligence products into a stronger source of income.

Analyst Tal Liani put a $285 price target on Salesforce. The shares reached $237.23 on Monday, although they remained down about 13% for the year. The move followed a difficult period for investors, who have been waiting to see whether the company's AI investments will pay off. Investor's Business Daily reported the upgrade.

Agentforce Revenue Draws Investor Interest

Agentforce has become an important part of Salesforce's plans for AI monetization. The platform lets businesses use AI agents for tasks such as answering customer questions and supporting sales teams.

Salesforce reported $1.5 billion in annual recurring revenue from Agentforce in its second-quarter fiscal 2027 results. That was up from $1.2 billion in the previous quarter. The increase suggests that demand is growing, though investors will want to see whether customers continue using the service and spending on it.

The company's quarterly results provide further details about its performance.

Salesforce is also changing how customers pay for AI agents. Instead of relying only on standard software subscriptions, consumption-based pricing ties charges more closely to how much a customer uses a service. This could give Salesforce another way to earn revenue, but the results will depend on actual usage and customers' willingness to pay.

Bringing AI Into Everyday Work

The broader Salesforce AI strategy centres on making its tools easier to use alongside software that employees already rely on.

At its September Dreamforce conference, the company introduced AIforce. The offering brings business data, workflows and AI agents into workplace tools, including Anthropic's Claude and Slack. Salesforce and Anthropic had also expanded their partnership in August.

The idea is to let employees work with AI without constantly switching between different applications. Whether that approach catches on will depend on how useful it proves in practice. Businesses will look for clear benefits, such as less time spent on routine tasks or quicker responses to customers, before committing more money.

There is still plenty of competition in the market. Salesforce needs to show that its products can do more than attract attention and that customers will keep paying for them.

Bank of America's upgrade signals greater confidence in Salesforce's prospects. Still, the company's share price will depend on more than analyst opinion. Continued customer demand, revenue growth and evidence that its AI products can generate lasting income will matter in the quarters ahead.

Frequently Asked Questions

1. Why did Salesforce stock rise on October 12?

The shares gained 3.5% after Bank of America upgraded its rating from Underperform to Buy. The bank pointed to improving prospects for Salesforce's AI business.

2. What is AI monetization?

AI monetization means generating revenue from artificial intelligence products and services. For Salesforce, that includes selling tools such as Agentforce to business customers.

3. What is Agentforce used for?

Agentforce lets businesses deploy AI agents to handle certain tasks, including customer service and sales support. These agents can help manage routine work within business processes.

4. What is Bank of America's price target for Salesforce?

Analyst Tal Liani set a $285 target after upgrading the stock. This is an estimate, not a promise that Salesforce shares will reach that price.

5. Can Salesforce's AI strategy help increase revenue?

It could, if businesses adopt the tools and continue paying to use them. Revenue growth will depend on customer demand, the usefulness of the products and competition from other software companies.