Microsoft Corp.’s stock fell more than two percent Wednesday after a report suggested that the company’s artificial intelligence software sales fell short of growth expectations, raising questions about the adoption of AI tools in traditional business settings.
The Information reported that many of Microsoft’s sales staff did not meet targets for the company’s Foundry product, an enterprise platform for building and managing AI agents.
A Microsoft spokesperson countered the report, stating that overall sales quotas for AI products have not been reduced.
Foundry is part of Microsoft’s Azure cloud platform, allowing companies to create AI agents capable of performing tasks autonomously. These tools are designed to streamline business operations and improve efficiency by automating workflows.
According to The Information, less than a fifth of salespeople in one US Azure unit achieved the Foundry sales growth target of 50 percent.
In another unit, the original quota aimed to double Foundry sales, but it was reportedly reduced to 50 percent after many salespeople failed to meet the initial goal.
Microsoft’s spokesperson said in a statement, “Aggregate sales quotas for AI products have not been lowered, as we informed them prior to publication.”
Industry experts say slower than expected adoption of AI tools among traditional businesses is not uncommon.
“Companies often overestimate the speed at which employees will embrace new technologies, especially complex platforms like Foundry,” said Jessica Lee, an analyst at TechFront Research.
“It’s not a reflection of the technology itself but rather of integration challenges and organizational readiness.”
AI adoption in enterprises has varied widely. While startups and technology firms have rapidly incorporated AI tools, many established companies have taken a cautious approach.
“Legacy systems and data silos can limit the effectiveness of AI agents,” said Daniel Murphy, a cloud computing consultant based in Seattle.
“Tools that promise seamless integration often require significant adjustment periods before delivering measurable results.”
The AI sector has seen an explosion of products and platforms. OpenAI, Google, Anthropic, Salesforce, Amazon, and others offer tools to build and manage AI assistants, fueling competition in enterprise AI.
Yet Microsoft’s experience highlights a broader trend: adoption of AI products in traditional businesses has not matched the rapid growth observed in other areas of the ecosystem.
For instance, private equity firm Carlyle reportedly faced adoption hurdles last year when its AI tools failed to reliably connect disparate data sources. The company subsequently reduced its investment in AI software.
Market analysts note that AI related stocks have experienced volatility as investors adjust expectations. Microsoft’s recent dip follows similar patterns seen in other tech giants when initial enterprise adoption falls short of optimistic projections.
Some sales staff and enterprise clients described the challenges candidly. “The Foundry platform has potential, but it’s not plug and play,” said a Microsoft salesperson, who requested anonymity to discuss internal targets.
“Many clients need custom integration work before they can fully leverage the AI agents, which makes hitting aggressive sales quotas difficult.”
A mid sized manufacturing company using Foundry said the platform helped automate scheduling and data reporting but required significant training and IT support.
“We’ve seen productivity gains, but it took longer than expected to implement,” said the company’s IT manager, Elena Torres. Microsoft continues to emphasize the potential of AI products to transform business operations.
“AI agents are a long term play for enterprise efficiency,” said Lee of TechFront Research. “Growth may appear uneven initially, but adoption tends to accelerate once organizations overcome technical and organizational hurdles.”
Investors and analysts will be closely watching future earnings reports and updates from Microsoft’s Azure cloud division to gauge whether AI products meet broader enterprise demand.
The company has also been expanding partnerships and customer support initiatives to ease adoption challenges. Microsoft’s stock decline following reports of AI sales underperformance highlights the growing pains in the enterprise AI sector.
While the company maintains that overall sales quotas remain unchanged, the experience underscores the complexities of integrating AI tools into established business workflows.
As enterprises navigate technical, operational, and organizational barriers, adoption of AI agents like Foundry is likely to continue gradually rather than instantaneously, reflecting a broader trend in the evolving AI marketplace.
