Microsoft (NASDAQ: MSFT) shares slipped 1.6% on Wednesday morning. The stock had earlier fallen as much as 3%. The drop came after the company denied a report claiming it had reduced sales quotas for its AI software products.
The tech giant released a statement responding to an article from The Information. In the message, Microsoft clearly said, “We did not lower AI sales quotas,” as reported by CNBC.
The original report had suggested Microsoft cut expectations for generating revenue from its newer AI tools, known as “agents.” These products are built to automate multi-step tasks. According to The Information, several Microsoft divisions allegedly lowered growth targets for some AI offerings after sales teams missed goals in the fiscal year that ended in June.
The publication also described the adjustment as unusual for Microsoft. It argued the move could point to challenges in persuading customers to increase spending on AI solutions, especially given ongoing resistance to higher, premium-level pricing.
After Microsoft issued its denial, the broader market reaction eased. The Nasdaq 100, which had been down 0.6% in pre-market trading, recovered and traded flat by mid-morning.
Microsoft has previously described 2025 as a major milestone year for its AI roadmap. The company expects its technologies to automate complex workflows, including tasks like generating dashboards from business sales data.
