Microsoft stock sinks on report AI product sales are missing growth goals

Microsoft pushed backmost connected a study Wednesday that the institution lowered maturation targets for artificial intelligence bundle income aft galore of its salespeople missed those goals successful the past fiscal year.

The company's banal sank much than 2% connected The Information report.

A Microsoft spokesperson said the institution has not lowered income quotas oregon targets for its salespeople.

The income lag occurred for Microsoft's Foundry product, an Azure endeavor level wherever companies tin physique and negociate AI agents, according to The Information, which cited 2 salespeople successful Azure's unreality unit.

AI agents tin transportation retired a bid of actions for a idiosyncratic oregon enactment autonomously.

Less than a 5th of salespeople successful 1 U.S. Azure portion met the Foundry income maturation people of 50%, according to The Information.

In different unit, the quota was acceptable to treble Foundry sales, The Information reported. The quota was dropped to 50% aft astir salespeople didn't conscionable it.

In a statement, the institution said the quality outlet inaccurately combined the concepts of maturation and quotas.

"Aggregate income quotas for AI products person not been lowered, arsenic we informed them anterior to publication," a Microsoft Spokesperson said.

The AI roar has presented opportunities for businesses to adhd efficiencies and streamline tasks, with the companies that physique these agents touting the powerfulness of the tools to instrumentality connected enactment and let workers to bash more.

OpenAI, Google, Anthropic, Salesforce, Amazon and others each person their ain tools to make and negociate these AI assistants.

But the adoption of these tools by accepted businesses hasn't seen the aforesaid surge arsenic different parts of the AI ecosystem.

The Information noted AI adoption struggles astatine backstage equity steadfast Carlyle past year, successful which the tools wouldn't reliably link information from different places. The institution aboriginal reduced however overmuch it spent connected the tools.

Read the afloat communicative from The Information here.