Microsoft's shares experienced a decline of over 2% on Wednesday following a report that the company is reducing its sales growth targets for certain artificial intelligence products. This decision was reportedly made after many members of the sales staff failed to meet their quotas for these products in the fiscal year that concluded in June. The move is considered uncommon for Microsoft, particularly within its rapidly expanding Azure cloud division. The market's reaction suggests investor concern regarding the pace of AI product adoption and the return on Microsoft's substantial investments in the technology. The report has fueled discussions about potential resistance from customers to newer AI offerings and the broader challenge of monetizing significant capital expenditures in the AI sector.
Microsoft Shares Decline After Report of Slashed AI Software Sales Quotas
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