tech
December 4, 2025
Microsoft drops AI sales targets in half after salespeople miss their quotas
Report: Microsoft declared “the era of AI agents” in May, but enterprise customers aren’t buying.
TL;DR
- Microsoft has lowered sales growth targets for its AI agent products.
- Salespeople missed quotas for AI agent products in the fiscal year ending June.
- AI agents are designed to perform multistep tasks autonomously.
- Microsoft has integrated AI agent features into products like Word, Excel, and PowerPoint.
- Some Azure sales units saw significant reductions in AI product sales targets.
- Enterprises may not be willing to pay premium prices for current AI agent tools.
- Microsoft salespeople face challenges selling Copilot, with some customers preferring ChatGPT.
- Current AI agent technology may not be ready for high-stakes autonomous business work.
- AI language models can confabulate, confidently generating false outputs.
- Agentic AI systems can still make catastrophic mistakes and are unreliable for hands-off autonomous work.
- AI agents inherit limitations from underlying AI models, especially with novel problems.
- Microsoft continues to invest heavily in AI infrastructure.
- Much of Microsoft's AI revenue comes from AI companies renting cloud infrastructure.
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