Microsoft reduced internal sales targets for its AI agent products after market response failed to meet ambitious expectations. Corporate customers hesitate due to difficulties measuring cost-saving effects. They also cite concerns over the reliability and safety of the new technology, particularly for critical functions such as cybersecurity and financial automation.
One cloud sales division achieved less than a fifth of its 50% sales growth target for an AI product designed to help customers build their own applications. Microsoft consequently lowered sales goals significantly for the current fiscal year.
This occurs as Microsoft continues to push its broader AI capabilities, including Copilot tools. These tools have also faced practical application challenges; private equity firm Carlyle, for instance, reduced spending after experiencing data extraction issues.