Microsoft drops AI sales targets in half after salespeople miss their quotas

Microsoft has reduced sales growth targets for its AI agent products after many salespeople missed quotas in the fiscal year ending in June. The company has struggled to meet ambitious sales goals for its AI offerings, leading to this adjustment. AI agents are specialized AI language models designed for autonomous multistep tasks, a key focus for Microsoft's 2025 strategy. Despite promises of automating complex tasks, such as generating dashboards and writing reports, the company has faced challenges in delivering on these commitments. Sales quotas for products like Foundry, which aids in developing AI applications, have been halved after salespeople failed to meet initial targets.