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

Microsoft has denied a report claiming that several divisions within the company have lowered sales growth targets for AI products, asserting that aggregate sales quotas for these products remain unchanged. This response follows a report from The Information indicating that some units had indeed reduced their sales expectations due to missed growth targets.

Microsoft has refuted claims that it has reduced sales targets for its AI software business, following reports indicating that several divisions within the company had adjusted their growth expectations after falling short in the previous fiscal year. The company maintains that aggregate sales quotas for AI products remain unchanged.

Microsoft has introduced new AI-driven features in the November update of Visual Studio 2026, which became generally available on November 11. These enhancements aim to improve developer workflows and productivity by leveraging artificial intelligence capabilities.

Multiple divisions within Microsoft have reduced sales quotas for certain AI products after failing to meet growth targets, marking a rare adjustment in their sales strategy. This decision reflects challenges faced by the company in convincing customers to adopt newer AI offerings amid a competitive landscape.

Tech giants Amazon, Google, and Microsoft are developing exact replicas of popular web platforms like Amazon and Gmail to train AI agents, enabling them to navigate the digital landscape similarly to humans. This initiative aims to enhance the capabilities of AI systems in understanding and interacting with online environments.

Apple has appointed Amar Subramanya, a Bengaluru University graduate and former Google and Microsoft engineer, as Vice President of AI, overseeing the company's global AI strategy. This significant hire comes as Apple seeks to enhance its AI capabilities amid criticism for falling behind in the competitive landscape of artificial intelligence.

Large language models (LLMs) have revolutionized software development by translating natural language into functional code, with tools like Github Copilot and Claude Code leading the charge. A recent comprehensive guide details the lifecycle of code LLMs, from data curation to autonomous coding agents, highlighting the significant advancements in performance metrics.

Google has made its Workspace Studio generally available, aiming to enhance employee engagement with AI agents developed by their teams. This initiative is part of a broader strategy to democratize access to AI tools within organizations, positioning Google against competitors like Microsoft and Amazon in the enterprise AI space.