Microsoft stock falls after report of lowered AI sales quotas

Investing.com -- Microsoft (NASDAQ: MSFT) stock fell 2% Wednesday morning following a report from The Information that the tech giant has reduced sales quotas for its AI software products as customers show resistance to newer offerings.

The report indicated that Microsoft has lowered expectations for how quickly it can monetize its newer AI products, known as "agents," which are designed to automate multi-step tasks. According to the publication, multiple Microsoft divisions have reduced sales growth targets for certain AI products after many salespeople missed their goals in the fiscal year that ended in June.

This adjustment is reportedly unusual for Microsoft, suggesting the company is facing unexpected challenges in convincing customers to increase spending on AI technologies. The Information noted that the change reflects growing resistance from companies to pay premium prices for AI solutions.

The news had broader market implications, sending ripples through the AI industry and tech sector. The Nasdaq 100 declined 0.6% in pre-market trading as investors reassessed the near-term growth potential of AI-related investments.

Microsoft had previously positioned 2025 as a breakthrough year for AI capabilities that could automate complex tasks, such as generating dashboards from company sales data. However, the report suggests the adoption timeline may be longer than initially anticipated.

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