Key Points
The next major advancement in artificial intelligence (AI) is anticipated to be agentic AI, where AI agents operate independently, accomplishing tasks with minimal human oversight. This technology suggests a future where AI agents collaborate with human workers.
Numerous companies are vying for opportunities in this domain. Among the most notable are SoundHound AI (NASDAQ: SOUN) and Salesforce (NYSE: CRM). Each company approaches the technology from a unique angle, contributing to their distinctiveness.
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Let’s explore the prospects of these two stocks to determine which might be the better investment.
SoundHound AI: A Front-Runner in Voice Technology
In recent years, SoundHound has positioned itself as a frontrunner in AI voice technology. The company has developed a platform utilizing “speech-to-meaning” and “deep meaning understanding” technologies, enabling it to interpret user intent even before they complete their speech, mimicking human conversational processing. This technology has garnered significant traction in sectors such as automotive and dining.
Recognizing the direction of AI development, SoundHound smartly acquired Amelia, integrating its virtual agents used across various industries, including healthcare and finance. Combining their technologies, they have launched a voice-first AI agent platform, further bolstered by a recent acquisition focused on workflow automation.
Salesforce: Building a Data Advantage
A leader in customer relationship management (CRM) software, Salesforce has faced pressure on its stock due to fears of being outpaced by AI advancements. Concerns about software-as-a-service (SaaS) companies suggest that as AI becomes more efficient, fewer software licenses will be needed, and companies may opt to build custom software using AI.
However, these concerns may be exaggerated. SaaS companies can adapt their pricing strategies, and the process of transitioning from established software to new solutions is complex. Moreover, Salesforce is evolving toward an agentic AI platform, acquiring Informatica for master data management, enabling it to serve as a comprehensive data source for organizations. This positions Salesforce uniquely as clean, organized data is crucial for effective AI function.
The Conclusion
Personally, I lean towards investing in Salesforce due to its favorable valuation and strategic positioning to lead in agentic AI. However, SoundHound may present more upside given its smaller scale, as its voice technology could distinguish it in the burgeoning AI agent landscape.
