Salesforce has announced a fresh round of price increases for several of its flagship cloud products, doubling down on artificial intelligence as the centerpiece of its future—even as mounting concerns about the actual capabilities of its AI tools raise questions about whether the tech is ready for prime time.

Starting August 1, the company will raise prices by an average of 6% for Enterprise and Unlimited editions of Sales Cloud, Service Cloud, Field Service, and selected Industry Cloud offerings. Products under the Starter, Pro, and Foundations tiers will be exempt from the hike. This follows a 10% across-the-board increase implemented just last August, which Salesforce similarly justified by citing growing AI integrations.

The Agentforce Rollout: Salesforce’s Big AI Bet

The price bump comes as Salesforce officially launches two versions of its new AI platform, Agentforce, which the company claims will deliver a new era of automation across customer relationship management and enterprise workflows. These tools are designed to deploy AI agents—autonomous software components meant to perform multi-step tasks with little human involvement.

The two tiers of Agentforce include:

1. Agentforce Add-on ($125/user/month): Available to Enterprise and Unlimited customers, it includes access to AI agents, industry-specific templates, analytics dashboards, and a prompt-builder designed to ease non-technical user interaction with the AI.
2. Agentforce 1 Editions ($550/user/month): A premium version offering additional customization, higher-tier features for specific cloud verticals, and annual allocations of 1 million Flex Credits and 2.5 million Data Services Credits per company.

Flex Credits, introduced in May 2025, replace the $2-per-interaction pricing model. This shift, Salesforce argues, gives enterprise customers more flexibility to manage usage and costs. The Agentforce suite also retires the “Einstein” brand, previously used for Salesforce’s AI tools.

However, the company’s own leadership has admitted the pricing model is a work in progress. Bill Patterson, EVP of CRM applications, said in June: “Any business that thinks they have [AI pricing] all figured out is kidding themselves.”

Slack Gets AI Integration—and a Price Bump

Slack, which Salesforce acquired in 2021 for $27.7 billion, is also undergoing an AI overhaul. New features include Salesforce Channels, which merge Slack conversations with CRM data to allow users to discuss and act on records inside the Salesforce UI.

The Slack Business+ plan will jump from $12.50 to $15 per user per month. Additionally, a new Enterprise+ tier bundled with Agentforce 1 Editions promises cross-platform AI-powered search across Slack, Salesforce data, and connected third-party apps—all from a unified dashboard.

But Is the Tech Ready?

While Salesforce is positioning itself at the frontier of AI in enterprise software, its internal data suggests a reality check is warranted.

Just a day before the price hike announcement, research led by a Salesforce employee revealed that large language model (LLM) agents only completed single-step CRM tasks correctly 58% of the time. That figure plunged to 35% when multiple steps were involved. These numbers feed into customer skepticism, particularly as many firms rely on Salesforce systems to manage mission-critical business operations.

User complaints have also emerged across forums and platforms, with some calling the pricing changes premature and pointing to frequent “hallucinations”—a term used when AI systems fabricate or distort information.

Wall Street Reaction

Investor sentiment was mixed. Salesforce’s stock enjoyed a temporary bump after the announcement but soon returned to previous levels, reflecting broader uncertainty about the company’s strategy. CFO Amy Weaver has previously warned that price increases “take a while to roll through our customer base,” suggesting a longer runway before the financial upside materializes.

To hedge its bets, Salesforce has started pivoting away from solely marketing AI models, focusing instead on building a layer of AI-enhanced applications. The company is aiming to position itself not just as a model provider, but as the go-to platform for AI-driven productivity tools across sales, service, and customer experience management.

Salesforce’s aggressive AI push mirrors a broader industry trend as enterprise software vendors seek to redefine their offerings with automation and predictive tools. The company has joined rivals like Microsoft, Oracle, and Adobe in embedding generative AI into nearly every product tier, with the hope of anchoring customers more deeply into their ecosystems.

However, as AI promises meet real-world limitations, Salesforce is facing an uneasy path between investor expectations, customer patience, and technological readiness.

Microsoft is preparing to lay off thousands of employees, with sales teams likely to bear the brunt of the cuts, as the tech giant pushes deeper into artificial intelligence while reining in costs across other business areas.

The layoffs are expected to be announced in early July, shortly after the close of the company’s fiscal year, according to people familiar with the matter who requested anonymity.

Though the final number of affected employees has not been confirmed, the cuts are expected to impact roles beyond sales, suggesting a broad internal restructuring as Microsoft prioritizes its AI infrastructure buildout. The company has so far declined to comment on the upcoming layoffs.

This fresh round of terminations will follow a May downsizing that eliminated around 6,000 positions, most of which came from product development and engineering. Those layoffs spared most customer-facing roles, including marketing and sales. But that appears to be changing as Microsoft increasingly turns to third-party firms to handle sales of its software products to small and mid-sized businesses.

AI Ambitions Forcing a Workforce Rebalance

At the heart of Microsoft’s workforce reshaping is its ambitious AI strategy. The company plans to spend $80 billion in capital expenditures this fiscal year, a massive jump from prior years, with the bulk of the investment directed toward data center construction and server infrastructure. The goal is to ease capacity constraints for its rapidly growing suite of AI services, including those powered by OpenAI, in which Microsoft has invested over $13 billion to date.

These data centers underpin Microsoft’s Azure cloud platform and its integration of AI models into products like Office 365 (Copilot), Bing, and GitHub. But building and maintaining AI capacity is costly, prompting Microsoft to impose strict financial discipline in other business units.

Executives have been clear that the company will “keep a lid on spending” in non-AI areas to meet investor expectations. In recent quarters, CFO Amy Hood has repeatedly signaled that AI-related investments would be offset by cuts in operational costs elsewhere.

Sales Teams in Transition

Microsoft had 228,000 employees globally at the end of June 2024, with around 45,000 working in sales and marketing. Sources indicate that the new layoffs will heavily affect these customer-facing teams, many of whom have seen their responsibilities shift as the company pivots to digital-first and partner-led sales strategies.

Back in April, Microsoft informed employees it would begin outsourcing more sales tasks, particularly in the small and medium business (SMB) segment. This strategy aligns with industry trends: as AI and automated tools become more adept at handling lead generation, customer engagement, and support, traditional sales roles are being reevaluated.

The company has also been reshaping how it sells its enterprise software and cloud products, moving away from labor-intensive direct sales and leaning more heavily on AI-powered tools and partner networks.

A Broader Pattern Across Big Tech

Microsoft’s workforce cuts echo similar moves by other tech giants. Amazon CEO Andy Jassy recently confirmed that generative AI and AI agents will reduce the company’s corporate workforce over time, even as new AI roles emerge.

In recent months:

• Meta has laid off tens of thousands while shifting resources to its Llama AI program.
• Google has consolidated multiple teams and cut staff across ad sales, recruiting, and engineering as it pours funding into Gemini, its AI initiative.
• Salesforce and SAP have made cuts to restructure for AI readiness.
• Even cybersecurity firm CrowdStrike announced a 5% reduction in staff, citing AI as a driver of back- and front-office efficiency.

The Future of Microsoft’s Workforce

While Microsoft insists these layoffs are part of its routine fiscal-year-end reevaluation, this year’s timing and scale suggest something more structural. With AI driving both innovation and disruption, the company is realigning its workforce to meet what CEO Satya Nadella calls “the AI age.”

The company’s fiscal year closes on June 30 and traditionally brings performance reviews, organizational changes, and business model updates. But this year’s changes come with added urgency as Microsoft races to stay ahead in an AI arms race that’s transforming the economics of Big Tech.

In a market where compute power and infrastructure scale define success, Microsoft is betting big on automation—and that means fewer humans in traditional roles. The company is not alone, but as one of the most powerful players in the industry, its strategy sends a message that AI will not just change the way people work—it will change who gets to work at all.

President Donald Trump has once again delayed enforcement of the divestment order against TikTok’s U.S. operations, marking the third time since assuming office in January that the administration has moved the deadline.

The new 90-day extension, confirmed by White House Press Secretary Karoline Leavitt on Wednesday, pushes the cutoff to September 17, 2025, offering China’s ByteDance more time to negotiate the sale of TikTok’s American business.

“President Trump will sign an additional Executive Order this week to keep TikTok up and running,” she said. “As he has said many times, President Trump does not want TikTok to go dark. This extension will last 90 days, which the Administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure.”

The reprieve comes just days ahead of the original June 19 deadline mandated under a national security law that the U.S. Supreme Court upheld shortly before Trump’s second inauguration. The law, passed in April 2024 with bipartisan support, requires ByteDance to divest its U.S. TikTok assets or face a ban, with penalties extending to app store operators like Apple and Google and internet service providers that support the app.

Political, Legal, and Market Friction

The extensions have already provoked strong reactions on Capitol Hill, especially from Senate Republicans who argue the law was explicit in allowing only one 90-day reprieve.

Legal experts say Trump’s action could open the door for lawsuits challenging executive overreach.

Despite the legal ambiguity, Trump has been consistent in stating he does not want TikTok shut down entirely. Speaking to NBC News last month, he reiterated that while data security is a legitimate concern, banning the app outright could hurt younger people who use it regularly.

There is also strategic political calculus behind the decision. TikTok played a key role in social media outreach during the 2024 campaign. Though Trump has been vocally critical of the platform in the past, his current stance seeks to balance national security fears with user base sensitivities and diplomatic considerations with Beijing.

Several entities, including Oracle, AppLovin, and Frank McCourt’s Project Liberty, have expressed interest in acquiring TikTok’s U.S. assets. However, negotiations have stalled amid ongoing uncertainty about whether the Chinese government would approve such a sale. Observers believe the stalemate reflects broader trade and diplomatic tensions between Washington and Beijing.

Notably, a previous TikTok shutdown in January led to the app being briefly removed from the Apple App Store and Google Play. It returned only after Trump’s initial executive order granted a delay. The same scenario could recur if no concrete sale agreement is reached by the new September deadline.

Trump’s administration has privately hinted that tariffs or other trade levers could be adjusted to break the deadlock with Beijing.

TikTok remains one of the most popular social media platforms in the United States, boasting over 170 million users and generating $10.4 billion in ad revenue in 2024 alone. Its user base, content creators, and advertisers have expressed relief at the extension, but uncertainty over the app’s long-term future continues to cloud business decisions.

According to a recent Pew Research survey, public sentiment against a TikTok ban is declining. Only about one-third of Americans now support removing the app, compared to nearly half in 2023.

Analysts say rivals like Meta (owner of Instagram and Facebook), Snap, and Reddit could benefit from prolonged ambiguity, possibly absorbing creators and ad budgets that might otherwise remain with TikTok.

A Crucial Three Months Ahead

The Trump administration insists the additional 90 days will be used to finalize a deal that secures American user data and ensures operational independence from China. National Security Adviser Michael Waltz and Vice President JD Vance are reportedly spearheading negotiations with potential acquirers.

In the background, ByteDance is also managing litigation and lobbying. Legal experts point out that the Supreme Court’s ruling upholding the law puts pressure on ByteDance to act swiftly.

Some legal experts have argued that there’s no fourth extension authorized by law, and if this deal isn’t closed by September, enforcement becomes inevitable unless Congress rewrites the statute.

However, TikTok will remain online and fully functional in the United States, with its fate hinging on the outcome of high-stakes talks between tech giants, lawmakers, and diplomats. The next three months are expected to determine the future of the embattled short-form video app.

Google’s legal battle to overturn a record €4.125 billion ($4.7 billion) European Union antitrust fine suffered a significant setback Thursday after an influential advisor to the EU’s top court urged judges to dismiss the tech giant’s appeal.

Juliane Kokott, advocate general at the European Court of Justice (ECJ), recommended that the court uphold a 2022 ruling by the EU’s General Court, which had slightly reduced the original fine but maintained the substance of the European Commission’s decision.

In her non-binding opinion, Kokott said the court should reject Google’s arguments and confirm the General Court’s judgment that the U.S. tech giant indeed abused the dominant position of its Android mobile operating system.

The fine, originally imposed in 2018 by the European Commission, remains the largest ever levied by the EU in an antitrust case. At the time, the Commission concluded that Google used Android’s dominance in the mobile space to illegally cement its search engine’s market leadership by forcing smartphone manufacturers to pre-install Google Search and Chrome as a condition for accessing the Play Store.

Commission’s Verdict on Android’s Market Power

The Commission’s case centered on how Google structured its licensing arrangements for Android, which the regulator said deprived rivals of a fair opportunity to compete. According to the Commission, manufacturers who wanted to use Google’s Play Store and other proprietary apps had to agree to exclusively pre-install Google’s own search and browser apps, effectively squeezing out competing software from the market.

Margrethe Vestager, the EU’s competition chief, had described Google’s practices as “illegal under EU antitrust rules,” adding that the company denied consumers “the benefits of effective competition in the important mobile sphere.”

Google’s Pushback and Its Broader Argument

Reacting to Thursday’s development, Google said it was “disappointed” with Kokott’s recommendation, which it believes sends the wrong signal to developers and users relying on open-source platforms.

“Android has created more choice for everyone and supports thousands of successful businesses in Europe and around the world,” a Google spokesperson told CNBC. The company further argued that the EU’s case, and the resulting fine, could discourage investment in open platforms.

Google maintains that Android, which it distributes free of charge, has enhanced competition by enabling smartphone manufacturers to customize devices and offer affordable handsets in both mature and emerging markets. The company also said it had made changes to its business practices following the original 2018 decision, including offering users in Europe a choice of default search engines on Android devices.

What Comes Next?

While Kokott’s opinion is not binding, it carries substantial weight in the ECJ’s final deliberations. Historically, the court follows the advocate general’s recommendation in approximately 80% of cases. A final ruling from the ECJ is expected in the coming months.

If the court affirms the judgment, it would be the third consecutive major loss for Google in high-profile EU antitrust cases. It would also underscore the European Commission’s authority to regulate Big Tech and its ability to enforce competition policy against dominant players in digital markets.

Google has been fined more than €8 billion by the EU across three separate cases, including another for favoring its own shopping service in search results and a third involving online advertising.

The Android case remains particularly important due to its far-reaching implications for the mobile ecosystem and the future of bundled services in digital platforms.

A final defeat in the case could embolden EU regulators to more aggressively pursue other ongoing investigations involving Apple, Amazon, and Meta under the bloc’s evolving competition laws. It may also influence how global regulators, including those in the U.S. and U.K., interpret platform dominance and anti-competitive bundling in mobile and digital ecosystems.

As the Digital Markets Act begins to take effect, Thursday’s opinion reaffirms Europe’s tough stance against perceived abuses of platform power and sets a precedent that could affect how open-source business models are regulated across industries.