- Reports that Microsoft reduced AI sales quotas have been debunked
- The company did not deny having adjusted its growth expectations.
- Azure Quarterly Revenue Still Up 40% Year Over Year
Microsoft has reportedly lowered its sales goals for some AI products after struggling to meet them, according to The information.
The company’s Azure AI agent creation platform was highlighted as a key product that has underperformed in terms of sales.
However, Microsoft has denied lower sales quotas, noting that The information He confused growth objectives with sales quotas.
Is Microsoft having difficulty selling its AI products?
“The informationThe story “incorrectly conflates the concepts of sales growth and quotas, demonstrating their lack of understanding of how a sales organization works and is compensated,” a company spokesperson said.
“Total sales shares of AI products have not decreased,” they stressed.
The information reported that fewer than one in five workers in one of Azure’s U.S. sales units met the previous 50% growth target for Foundry. Another sales unit reportedly had a quota to double Foundry’s sales, but it is believed to have been reduced to 50%.
Although Redmond denied lowering its sales quotas, the company did not deny lowering its growth targets, per se. TechRadar Pro He requested clarification from Microsoft, but we have not yet received a response.
With this in mind, Microsoft and many other companies may find it difficult to pivot some AI products as the world discovers where AI is most useful.
Azure revenue increased 40% last quarter, reflecting strong demand for cloud-based technologies, including artificial intelligence.
CEO Satya Nadella said the company “will continue to grow [its] investments in AI in both capital and talent to take advantage of the enormous opportunity that lies ahead.”
Microsoft shares fell about 3% after the initial report, but have since begun to recover.
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