financetom
Technology
financetom
/
Technology
/
Microsoft lowers AI software sales quota as customers resist new products, The Information reports
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Microsoft lowers AI software sales quota as customers resist new products, The Information reports
Mar 10, 2026 9:25 PM

Dec 3 (Reuters) - Multiple divisions at Microsoft ( MSFT ) have lowered sales growth targets for certain artificial intelligence products after many sales staff missed goals in the fiscal year that ended in June, The Information reported on Wednesday.

It is rare for Microsoft ( MSFT ) to lower quotas for specific products, the report said, citing two salespeople in the Azure cloud unit.

Shares of the company, which is one of the biggest winners of the generative AI boom thanks to its early bet on ChatGPT-maker OpenAI, fell more than 2% in premarket trading. The stock has gained about 16% this year.

The Windows maker did not immediately respond to a Reuters request for comment.

Lower sales growth goals for Microsoft's ( MSFT ) AI products are likely to fans fears about real-world adoption of AI as an MIT study from earlier this year had found that only about 5% of AI projects advance beyond the pilot stage.

U.S. tech giants are under investor pressure to prove that their hefty investments in AI infrastructure are generating returns.

Microsoft ( MSFT ) reported a record capital expenditure of nearly $35 billion for its fiscal first quarter in October and warned that spending would rise this year. Overall, U.S. tech giants are expected to spend around $400 billion on AI this year.

The companies have said the outlay is necessary to overcome supply constraints that have hobbled their ability to capitalize on AI demand.

Microsoft ( MSFT ) has predicted that it would remain short on AI capacity at least until the end of its current fiscal year in June 2026.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Arun Koyyur)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Verizon uses GenAI to improve customer loyalty
Verizon uses GenAI to improve customer loyalty
Jun 18, 2024
By Supantha Mukherjee STOCKHOLM, June 18 (Reuters) - U.S. telecom company Verizon is using generative AI to stop 100,000 customers from leaving its service this year by predicting why a customer is calling, connecting them with a suitable agent and reducing store visit time, CEO Hans Vestberg said on Tuesday. The company receives around 170 million calls every year and...
HPE CEO unveils 'simple' AI hardware aimed to help businesses
HPE CEO unveils 'simple' AI hardware aimed to help businesses
Jun 18, 2024
June 18 (Reuters) - Hewlett Packard Enterprise ( HPE ) CEO Antonio Neri pitched a new line of hardware, software and services to businesses interested in deploying various forms of artificial intelligence at its Las Vegas conference on Tuesday. Since the launch of OpenAI's ChatGPT in 2022, businesses of all sizes have been scrambling to develop and incorporate AI, to...
Senator says US needs to 'up our game' on tracking Chinese tech efforts
Senator says US needs to 'up our game' on tracking Chinese tech efforts
Jun 18, 2024
WASHINGTON (Reuters) - The chair of the Senate Intelligence Committee said on Tuesday that U.S. intelligence agencies need to do a better job in tracking Chinese advanced technology and other efforts across a variety of fields. Our intel community is so used to traditionally spying - you spy on the military, you spy on the government. You don't necessarily follow...
Expert Outlook: Zuora Through The Eyes Of 8 Analysts
Expert Outlook: Zuora Through The Eyes Of 8 Analysts
Jun 18, 2024
In the last three months, 8 analysts have published ratings on Zuora ( ZUO ) , offering a diverse range of perspectives from bullish to bearish. The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish...
Copyright 2023-2026 - www.financetom.com All Rights Reserved