Microsoft lowers AI sales targets as enterprise adoption slows
GeokHub
Contributing Writer
SAN FRANCISCO — Dec 3 (GeokHub) Microsoft has adjusted down sales growth targets for some of its artificial intelligence–related software after several internal sales teams failed to meet their goals, marking an unusual shift in expectations for the tech giant’s AI business.
The change, reported this week, reflects resistance from some corporate customers toward adopting newer AI products, particularly tools designed to automate complex workplace tasks. Analysts say this suggests that while enthusiasm for AI remains high, real-world enterprise uptake may be progressing more slowly than industry leaders once anticipated.
The adjustments appear across multiple divisions, including parts of the company tied closely to its cloud services and AI platforms. Microsoft rarely lowers product-specific quotas, making the reported shift notable amid broader scrutiny of how quickly AI investments translate into revenue.
Shares of the company dipped in early trading as investors reacted to the news, highlighting renewed market sensitivity around tech firms’ AI strategies. Despite the recent pullback, Microsoft’s cloud and AI businesses continue to grow, underpinning its long-term investment in tools like workplace automation and productivity software.
Industry observers say the development underscores a broader recalibration: companies may need more time to fully integrate AI into core operations, and vendors might have to balance ambitious growth targets with the pace at which customers are ready to buy and deploy advanced AI solutions.
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