Microsoft Corp (NASDAQ:MSFT) shares fell 2.1% on Wednesday morning after a report suggested the company has lowered expectations for sales of its newer artificial intelligence products among business customers.
The Information reported that Microsoft has reduced growth goals for AI software, citing two salespeople in the Azure cloud unit. The division is a key focus for investors as it is central to Microsoft’s AI strategy.
However, the company has not cut quotas or targets for its sales staff, CNBC reported.
It is uncommon for Microsoft to adjust sales targets for specific products. Investors worry that the move could signal weaker-than-expected adoption of AI tools in real-world business applications, raising concerns that the excitement driving valuations may be overextended.
The report highlighted that Carlyle Group began using Microsoft’s Copilot Studio last year to automate tasks such as meeting summaries and financial modeling but later reduced spending after encountering difficulties in integrating the software with other applications.
Microsoft has previously indicated that it expects to remain short on AI capacity at least until the end of its current fiscal year in June 2026.