Parnassus Investments Chief Investment Officer Todd Ahlsten warned that the seat-based licensing model, a core revenue driver for enterprise software giants Salesforce (NYSE: CRM) and ServiceNow (NYSE: NOW), faces structural pressure from the rise of AI agents. The concern stems from the potential for companies to increase output without adding employees, thereby reducing the need for additional software licenses.

Ahlsten stated on Bloomberg Tech that the long-term bankability of the seat license model is challenging as AI tools from Anthropic, OpenAI, and Google’s Gemini allow firms to do more work with fewer human users. "The seat license model is just going to be under a lot of pressure," he said. "We wish them well. They're good companies. I just think the long-term bankability of that is going to be challenging."

Shift in Pricing Dynamics

Traditionally, software revenue grew in tandem with corporate hiring. AI disrupts this link by enabling productivity gains without corresponding headcount expansion. Consulting firm Bain & Company analyzed more than 30 SaaS vendors introducing generative AI and found that about 65% had adopted hybrid pricing. This approach layers AI usage or feature-based charges on top of traditional seat pricing, signaling a move away from pure headcount dependency.

Company Adaptations

Both Salesforce and ServiceNow are adjusting their revenue models to account for this shift. They are adding usage-based AI pricing to capture value from digital workers even if human seat growth stalls.

Salesforce CEO Marc Benioff noted that the company maintained its engineering workforce at about 15,000 for roughly two years while AI helped engineers achieve more output. This internal efficiency mirrors the external risk Ahlsten highlighted: if customers grow without hiring, they may require fewer new seats.

However, Salesforce reported on its May earnings call that its Sales and Service products still saw year-over-year seat growth. Additionally, the company noted that its 10 customers making the heaviest use of its AI agents increased their total Salesforce spending by 1.5 times over the previous year.

ServiceNow CEO Bill McDermott told the Wall Street Journal that roughly half of net new business revenue now comes from non-seat-based models. This diversification suggests the company is already mitigating reliance on traditional licensing.

What the Numbers Show

The data reveals a divergence between traditional growth drivers and emerging revenue streams. While Salesforce reports continued seat growth, its highest-value AI adopters are increasing spend by 1.5 times, suggesting that usage-based models may yield higher revenue per unit of engagement than seat licenses alone. Meanwhile, ServiceNow’s disclosure that 50% of net new revenue is non-seat-based indicates a more advanced transition away from headcount-dependent metrics compared to peers still reporting pure seat growth.

Salesforce announced on Wednesday that it will release its second quarter fiscal 2027 financial results on August 26, 2026, after the close of the market. The cloud computing software company will host a live broadcast at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss the quarterly performance with the investment community. This announcement sets the timeline for investors to evaluate the firm’s progress in its AI CRM initiatives and overall financial health for the period.

The live broadcast and replay of the earnings call will be available on the Salesforce Investor Relations website at www.salesforce.com/investor . Investors and analysts will be able to access the presentation materials and listen to management’s commentary regarding the quarter’s operational and financial outcomes.

Key Dates and Details

Salesforce, listed on the New York Stock Exchange under the ticker symbol CRM, positions itself as the world’s number one AI CRM platform. The company helps organizations become Agentic Enterprises by integrating humans, agents, apps, and data on a trusted, unified platform to unlock growth and innovation.

Investor relations inquiries can be directed to investor@salesforce.com , while public relations matters should be addressed to pr@salesforce.com . The announcement serves as a procedural notice for the upcoming earnings cycle, ensuring stakeholders are aware of the specific date and time for the financial disclosure.