Workday

By Juby Babu Aug 27 (Reuters) – Workday reported a nearly 13% rise in revenue on Thursday and said its AI solutions were seeing strong adoption and driving customer wins, easing ​investor fears of artificial intelligence disruption to its business. The finance ‌and human resources software provider has been embedding AI across its platform to automate tasks from payroll processing to financial forecasting, aiming to boost efficiency for its clients. “Across large and medium enterprises, Al is a key reason companies are ‌modernizing ​their core on Workday.

Over half of our ⁠net new wins in ⁠the second quarter signed up for one or more Al solutions,” Chief Commercial Officer Rob Enslin said on a post-earnings call. Shares of the company were up marginally in extended trading, after falling ​as much as 5% initially, as investors weighed its in-line second-quarter revenue and third-quarter subscription revenue forecast. The rapid evolution of generative ⁠AI has raised investor concerns about potential ⁠disruption and the high cost of research and development ​required to keep pace with Big Tech players also targeting the ​enterprise software market.

Workday, however, is seeing AI as a driver ‌for application sales which is the “opposite of the ‘SaaSpocalypse’ theme,” said Rebecca Wettemann, CEO of industry analyst firm Valoir. The company’s pipeline depends on winning new core deployments and proving AI adoption on top of them, ⁠Wettemann added.