Microsoft's commercial chief Judson Althoff announced the company exceeded sales targets for its Copilot AI add-on in the March quarter after adjusting its sales strategy following analyst feedback. The $30-per-month Microsoft 365 Copilot reached 15 million seats in January, representing 3% adoption among corporate users. While analysts initially criticized the relatively low adoption rates, Microsoft has now reset ambitious goals for the June quarter. The company's stock declined 23% in the first quarter amid broader investor concerns about whether AI investments will deliver meaningful revenue growth. Althoff expressed confidence in meeting the new quarterly targets, signaling potential momentum in enterprise AI adoption as Microsoft aims to demonstrate that its substantial data center spending will translate into profitable AI-driven products and services.
