AI agents are benefitting businesses, while GenAI benefits consumers. Both Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems will benefit differently from Agentic AI. For example, the ERP system providers benefit from cost reductions and efficiency gains, making AI an essential element for complex workflows. On the other hand, AI adoption among CRM system providers is driven by more efficient customer interaction and a better user experience which enhances brand differentiation. Businesses focused on automation will adopt ERP Agentic AI, while those prioritising customer experience will choose CRM Agentic AI solutions.
AI agents drive cost efficiency. In the US, a physical human agent would cost USD15–25 per hour and handle 4-6 interactions, translating to a cost of USD4-6 per interaction. In comparison, adopting Salesforces’ Agentforce will halve the cost with each interaction at only USD2. Internally, the all-in per interaction cost (compute power, AI model licensing, API overhead) for using Agentforce is even lower at USD0.65-0.75. This effectively enhances the gross margin to a range of 60-70%. Furthermore, advancements in AI technology like DeepSeek are driving down operational costs (AI Model Licensing), further driving cost efficiency. In Mar 2025, Salesforce launched AgentExchange, a marketplace designed for partners, developers, and the Agentblazer community to build and monetise Agentforce solutions. This platform enables corporate users to adopt plug-and-play AI agents without heavy in-house development.
Favour hyperscalers in addition to ERP and CRM. Besides the aforementioned application providers, hyperscalers like Alibaba, Amazon, and Microsoft are equally important by providing compute power, storage platforms, and the vast SaaS ecosystem. Expect high revenue growth and profitability ahead. Major players such as Salesforce, SAP, and Alibaba reported above-consensus adjusted earnings in 4Q24 (calendar year), driven by cloud growth and AI deployment. In terms of forecast, Salesforce has guided revenue growth of 7-8% y/y for FY1/26F with their Agentforce and Data Cloud contributing USD900mn in annual recurring revenue in 4Q25, reflecting a 120% y/y growth. SAP forecasts cloud revenue growth of 26-28% in FY12/25, while the street expects Alibaba cloud revenue to achieve a CAGR of 18% over FY25F-FY27F. In addition to cloud revenue, Alibaba could potentially monetise its AI solutions such as: i) AI-To-Consumers Qwen Chat, ii) AI-To-Business Dingtalk, iii) AI search assistant, and iv) AI-related projects in Tmall within the next two to three years.
Prefer SaaS providers and Chinese hyperscalers. SaaS providers are well-positioned to accelerate AI service monetisation by integrating directly into their existing products, utilising the AI infrastructure, compute power, and storage of hyperscalers. In China, the hyperscalers are in the early stage of cloud revenue growth, while SaaS infrastructure providers have yet to catch up. ERP and CRM providers will gain significant advantages from AI agents globally. These applications will not only proactively generate insights for autonomous decision-making, but also automate system configurations, ultimately lowering costs and making advanced solutions accessible to businesses of all sizes. In this backdrop, Salesforce and SAP have higher exposure to the CRM and ERP segment, while Alibaba is the largest hyperscaler in China.
The information published by DBS Bank Ltd. (company registration no.: 196800306E) (“DBS”) is for information only. It is based on information or opinions obtained from sources believed to be reliable (but which have not been independently verified by DBS, its related companies and affiliates (“DBS Group”)) and to the maximum extent permitted by law, DBS Group does not make any representation or warranty (express or implied) as to its accuracy, completeness, timeliness or correctness for any particular purpose. Opinions and estimates are subject to change without notice. The publication and distribution of the information does not constitute nor does it imply any form of endorsement by DBS Group of any person, entity, services or products described or appearing in the information. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment or securities. Foreign exchange transactions involve risks. You should note that fluctuations in foreign exchange rates may result in losses. You may wish to seek your own independent financial, tax, or legal advice or make such independent investigations as you consider necessary or appropriate.
The information published is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to subscribe to or to enter into any transaction; nor is it calculated to invite, nor does it permit the making of offers to the public to subscribe to or enter into any transaction in any jurisdiction or country in which such offer, recommendation, invitation or solicitation is not authorised or to any person to whom it is unlawful to make such offer, recommendation, invitation or solicitation or where such offer, recommendation, invitation or solicitation would be contrary to law or regulation or which would subject DBS Group to any registration requirement within such jurisdiction or country, and should not be viewed as such. Without prejudice to the generality of the foregoing, the information, services or products described or appearing in the information are not specifically intended for or specifically targeted at the public in any specific jurisdiction.
The information is the property of DBS and is protected by applicable intellectual property laws. No reproduction, transmission, sale, distribution, publication, broadcast, circulation, modification, dissemination, or commercial exploitation such information in any manner (including electronic, print or other media now known or hereafter developed) is permitted.
DBS Group and its respective directors, officers and/or employees may have positions or other interests in, and may effect transactions in securities mentioned and may also perform or seek to perform broking, investment banking and other banking or financial services to any persons or entities mentioned.
To the maximum extent permitted by law, DBS Group accepts no liability for any losses or damages (including direct, special, indirect, consequential, incidental or loss of profits) of any kind arising from or in connection with any reliance and/or use of the information (including any error, omission or misstatement, negligent or otherwise) or further communication, even if DBS Group has been advised of the possibility thereof.
The information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The information is distributed (a) in Singapore, by DBS Bank Ltd.; (b) in China, by DBS Bank (China) Ltd; (c) in Hong Kong, by DBS Bank (Hong Kong) Limited; (d) in Taiwan, by DBS Bank (Taiwan) Ltd; (e) in Indonesia, by PT DBS Indonesia; and (f) in India, by DBS Bank Ltd, Mumbai Branch.