tech
Microsoft drops AI sales targets in half after salespeople miss their quotas
Report: Microsoft declared “the era of AI agents” in May, but enterprise customers aren’t buying.
TL;DR
- Microsoft has lowered sales growth targets for its AI agent products.
- Salespeople have missed quotas for AI agent products, indicating enterprise hesitation to adopt them.
- AI agents, designed for autonomous multistep tasks, are central to Microsoft's sales pitch.
- The technology's tendency to confabulate and make errors makes it unreliable for autonomous business work.
- Microsoft continues to invest heavily in AI infrastructure, even as enterprise adoption lags.
- Much of Microsoft's AI revenue currently comes from AI companies renting cloud infrastructure.