Workday CEO Carl Eschenbach on Thursday tried to ease worries that artificial intelligence is destroying software business models.

“It’s an overblown narrative, and it’s not true,” he told CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland, calling AI a tailwind and “absolutely not a headwind” for the company.

Software stocks have sold off in recent months on concerns that new AI tools will upend the sector and displace longstanding and recurring businesses that once fueled big profits.

Workday shares lost 17% last year and have sunk another 15% since the start of 2026. In its third-quarter earnings report, the company shared lackluster subscription revenue guidance that spooked some analysts and investors.

Elsewhere, Adobe and Salesforce lost 21% last year, while HubSpot plummeted more than 40%.

Eschenbach said businesses are leaning on Workday for more AI tools and its first-party data, which the company is leveraging to stay ahead of third-party tools.

Many software businesses have been investing in more tools to boost their AI software stacks and preempt competitive AI pressures.

Workday slashed about 1,750 jobs last year to invest in AI and ServiceNow signed a three-year deal with OpenAI earlier this week to bolster its offerings.

“We are uniquely positioned to be one of the AI winners in the enterprise because of our incumbency, and lastly, because of the trust we get from our customers,” Eschenbach said.

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