Microsoft has hit a rough patch in its AI push, with fresh reports indicating that the company’s aggressive spending on artificial intelligence may not yield quick revenue gains. Shares fell by as much as 3% on Wednesday after The Information reported that the tech giant is struggling to convince customers to fully adopt its newest AI products.
According to the report, Microsoft has quietly reduced several internal AI sales growth targets after some sales teams missed their quotas. The slowdown appears tied to weaker-than-expected customer enthusiasm, despite the company’s heavy marketing of tools like Copilot and other enterprise-focused AI solutions.
Microsoft is one of the few global “hyperscalers” pouring tens of billions into AI infrastructure. Any signs that adoption could take longer than expected immediately ripple into the market, especially at a time when tech valuations are already stretched. Over the past month, leading AI stocks have come under pressure amid concerns that investor optimism around generative AI may be cooling.
For a company that has positioned itself at the center of the AI revolution, the report raises key questions about the timeline for monetizing these investments. Slower uptake could force a broader recalibration in the tech industry, where competitors and investors alike have been betting heavily on rapid AI-driven growth.
Microsoft disputed the report, telling CNBC that it has not lowered quotas for its AI products. Even so, the stock reaction highlights growing investor sensitivity to any hint that AI’s commercial impact may be less immediate than projected.
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