Workday's stock has been in a slump. Its CEO is leaning into agentic AI. (www.businessinsider.com)

Workday's recent earnings call unveiled a mixed outlook as its stock tumbled by 10% following a weaker-than-expected subscription revenue forecast. CEO Anil Bhusri emphasized a shift toward "agentic AI" as a potential growth catalyst, focusing on improving business processes and reducing costs. He articulated a vision where AI could handle more tasks traditionally done by humans, while acknowledging the broader implications for workforce displacement. However, he clarified that this shift isn’t about replacing employees but responding to industry-wide transformations. Despite reporting growth in revenue and net income, the sentiment around AI's disruptive potential has led to a broader sell-off in software stocks, impacting Workday and companies like LegalZoom and Okta. Bhusri's cautious approach to guidance reflects his intention to exceed expectations, even as the company anticipates that its AI-driven products won’t yield significant revenue until later in the year. This approach aligns with Workday's strategic focus on integrating AI into its human resources and financial software, positioning the company to adapt to the evolving landscape of technology in business.