working day CEO Karl Eschenbach on Thursday sought to allay concerns that artificial intelligence is disrupting software business models.
“That’s a big deal, it’s not true,” he told CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland, adding that AI is a tailwind for the company, “not a headwind.”
Software stocks have been sold off in recent months on fears that new AI tools will upend the industry and displace long-standing, ongoing businesses that once brought in huge profits.
Workday’s stock price fell 17% last year and has fallen another 15% since the start of 2026. The company surprised some analysts and investors with its lackluster subscription revenue outlook in its third-quarter earnings report.
In other places, adobe and sales force Last year, it decreased by 21%. hubspot It plummeted by more than 40%.
Eschenbach said companies are turning to Workday for more AI tools and first-party data, and the company is leveraging that to stay ahead of third-party tools.
Many software companies are investing in more tools to enhance their AI software stacks and stay ahead of AI competitive pressures.
Last year, Workday introduced AI and ServiceNow earlier this week signed a three-year agreement with OpenAI to enhance its services.
“We are uniquely positioned to be one of the AI winners within the enterprise because of our track record and, ultimately, the trust we have from our customers,” Eschenbach said.
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