ServiceNow and Salesforce positioned as AI-era SaaS winners as software sector faces threat from AI coding tools

SaaS stocks have been hit hard this year as investors worry that agentic AI (AI agents that complete tasks independently) will replace custom software. Bears point to Claude Code and similar AI coding tools as evidence that organizations can build their own software without vendor tools. However, an Alibaba study found 75% of AI-generated code failed within a year, and Claude Code itself became less reliable after launch due to security issues.

ServiceNow and Salesforce differ from vulnerable UI-wrapper SaaS tools because they sit at the center of customer data and workflows—ServiceNow as the orchestration layer for technical infrastructure, Salesforce as the master record for customer and operational data. This deep integration makes them harder to replace, and their data-management capabilities position them as platforms for AI agents to pull clean, structured data from (reducing AI hallucinations).

Analysts project ServiceNow could reach $160 per share (85% upside from current levels) based on 20% revenue growth and its potential as an agentic AI orchestration platform. Salesforce could reach $300 per share (70% upside) given its 11% projected compound annual growth rate through fiscal 2030 and its Informatica acquisition for data cleansing. For business professionals, this means these two vendors are betting their survival on becoming infrastructure for AI-driven operations rather than user-facing tools.