How are legacy enterprise software vendors like SAP and Salesforce responding to the AI competitive threat?

Legacy enterprise software vendors like SAP and Salesforce are responding to the AI competitive threat by accelerating their own AI integrations, forming strategic partnerships, and overhauling pricing models to stay relevant amid disruptions from AI-native tools that reduce the need for costly implementations [1][3]. SAP is shifting its focus toward AI-driven growth, establishing a new unit with hundreds of staff to promote AI feature adoption, and introducing use-based pricing to counter threats to its legacy subscription model, following setbacks in cloud transitions [2][6]. Similarly, Salesforce is investing heavily in AI initiatives like Agentforce, which has driven significant revenue growth, and partnering with NVIDIA to integrate advanced AI models for enterprise-grade solutions in regulated environments [7][9]. Overall, these incumbents are adapting by enhancing AI capabilities rather than facing outright replacement, though investor caution persists as AI reshapes competitive moats around data and automation [4][11][12].