Amid a broader slump in software stocks, Workday’s CEO Anil Bhusri reaffirmed the company’s focus on artificial intelligence as a key driver of future growth during the company’s Tuesday earnings call. Despite reporting strong revenue and net-income gains for the quarter ended January, Workday’s shares dropped nearly 10% after the company issued a forecast for slower subscription revenue growth than analysts had anticipated. Bhusri acknowledged the market’s concerns, which have been fueled by fears that AI could disrupt traditional software business models. The sell-off began in early February, sending the tech sector into a deep bear market and affecting companies across industries, including LegalZoom, Thomson Reuters, and Okta. Rather than dwell on the challenges, Bhusri framed AI as an opportunity to enhance business efficiency. “We're working really hard to figure out how we improve business process execution for our customers at a lower cost,” he said. He highlighted the potential of agentic AI models—systems that can autonomously perform tasks—to replace certain aspects of human labor. “What can agents do to replace human labor?” he asked. “And then obviously, longer term, we've got to figure out what we're going to do with those humans that are displaced.” The comments underscored Workday’s strategic pivot toward AI-powered tools in its core HR and finance software platforms. The company is investing heavily in developing agentic products designed to automate workflows, reduce operational costs, and deliver greater value to enterprise clients. While the company did not directly address investor anxiety about AI’s disruptive potential, Bhusri maintained a cautious tone on guidance, noting his track record of under-promising and over-delivering. “I don't know if you remember me when I was a CEO before, but I do try to be conservative on the guide and then beat it,” he said, reinforcing confidence in Workday’s long-term strategy despite near-term headwinds.