- Reports of Microsoft cutting AI sales quotas denied
- The company did not deny adjusting its growth expectations
- Azure quarterly revenue still up 40% year-over-year
Microsoft reportedly cut sales targets for some AI products after struggling to meet them, says The information.
The company’s Azure AI agent creation platform was highlighted as a key underperforming product in terms of sales.
However, Microsoft denied the drop in sales quotas, noting that The information confused growth objectives and sales quotas.
Is Microsoft struggling to sell its AI products?
“The information“The story inaccurately combines the concepts of growth and sales quotas, which shows their lack of understanding of how a sales organization works and is remunerated,” a company spokesperson commented.
“Overall sales quotas for AI products have not been lowered,” they stressed.
The information reported that fewer than one in five workers in any of Azure’s U.S. sales units reached the previous 50% growth target for Foundry. Another sales unit would have had a quota to double the foundry’s sales, but that quota would have been lowered to 50%.
Although Redmond denied cutting its sales quotas, the company did not deny cutting its growth targets per se. TechRadar Pro requested clarification from Microsoft, but we have not yet received a response.
With that in mind, it’s possible that Microsoft, and many other companies, will struggle to move certain AI products as the world seeks to determine where AI is most useful.
Azure’s revenue grew 40% last quarter, reflecting strong demand for cloud-based technologies, including AI.
CEO Satya Nadella said the company “will continue to grow [its] investments in AI in terms of capital and talent to capture the enormous opportunities ahead.
Microsoft stock fell about 3% after the initial report, but it has since started to recover.
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