Microsoft shares fell more than 2% on Wednesday after The Information reported that the company quietly lowered sales quotas for its Azure AI Foundry platform. The move came after many Microsoft sales teams failed to hit aggressive growth targets in the last fiscal year — an unusual step for the tech giant.
Azure’s Foundry product allows enterprises to build and deploy autonomous AI agents. While the broader AI boom continues, adoption of agent-based systems has lagged among traditional businesses.
🚨 $MSFT Microsoft Lowers AI Software Sales Quotas as Customers Resist Newer Products -- THE INFORMATION
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Taking market down pic.twitter.com/jFTsyFcwh8
Less than 20% of sales staff in one U.S. Azure unit met a 50% growth target for Foundry, the report said. Another unit saw its quota cut after most employees missed a mandate to double sales.
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The slowdown adds to broader concerns about real-world enterprise uptake, echoing past struggles like private equity firm Carlyle’s issues integrating AI tools across its data systems. Microsoft declined to comment.
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TIPP Staff
TIPP Staff
