"Microsoft has reportedly had a hard time convincing corporate customers to pay premium prices for its enterprise AI products, particularly as their employees prefer ChatGPT or Gemini."
"Customers' reluctance to pay top dollar for Microsoft's AI tools likely reflects the pace at which new AI alternatives have raced to market."
"With so many services to choose between and the industry at such a febrile and inventive stage, customers want to dance between the options as they seek those they prefer."
"AI services are like streaming services, except you don't need to subscribe to them all: they pretty much all offer the same thing, though some are better for some tasks."
Microsoft struggles to convince corporate customers to invest in its enterprise AI products, as many prefer alternatives like ChatGPT and Gemini. Reports indicate Microsoft reduced sales targets for some products, which the company denied. Only 3.3% of Microsoft 365 users have a paid Copilot license. Customers are reluctant to commit to one provider due to the rapid emergence of new AI options and recent price increases, leading them to seek flexibility among various services rather than loyalty to a single provider.
Read at Computerworld
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