Clippy, How Is Copilot? Oh, Too Bad
December 8, 2025
Another dinobaby post. No AI unless it is an image. This dinobaby is not Grandma Moses, just Grandpa Arnold.
In most of my jobs, rewards landed on my desk when I sold something. When the firms silly enough to hire me rolled out a product, I cannot remember one that failed. The sales professionals were the early warning system for many of our consulting firm’s clients. Management provided money to a product manager or R&D whiz with a great idea. Then a product or new service idea emerged, often at a company event. Some were modest, but others featured bells and whistles. One such roll out had a big name person who a former adviser to several presidents. These firms were either lucky or well managed. Product dogs, diseased ferrets, and outright losers were identified early and the efforts redirected.
Two sales professionals realize that their prospects resist Microsoft’s agentic pawing. Mortgages must be paid. Sneakers must be purchased. Food has to be put on the table. Sales are needed, not push backs. Thanks, Venice.ai. Good enough.
But my employers were in tune with what their existing customer base wanted. Climbing a tall tree and going out on a limb were not common occurrences. Even Apple, which resides in a peculiar type of commercial bubble, recognizes a product that does not sell. A recent example is the itsy bitsy, teeny weenie mobile thingy. Apple bounced back with the Granny Scarf designed to hold any mobile phone. The thin and light model is not killed; its just not everywhere like the old reliable orange iPhone.
Sales professionals talk to prospects and customers. If something is not selling, the sales people report, “Problemo, boss.”
In the companies which employed me, the sales professionals knew what was coming and could mention in appropriately terms to those in the target market. This happened before the product or service was in production or available to clients. My employers (Halliburton, Booz, Allen, and a couple of others held in high esteem) had the R&D, the market signals, the early warning system for bad ideas, and the refinement or improvement mechanism working in a reliable way.
I read “Microsoft Drops AI Sales Targets in Half after Salespeople Miss Their Quotas.” The headline suggested three things to me instantly:
- The pre-sales early warning radar system did not exist or it was broken
- The sales professionals said in numbers, “Boss, this Copilot AI stuff is not selling.”
- Microsoft committed billions of dollars and significant, expensive professional staff time on something that prospects and customers do not rush to write checks, use, or tell their friends about the next big thing.”
The write up says:
… one US Azure sales unit set quotas for salespeople to increase customer spending on a product called Foundry, which helps customers develop AI applications, by 50 percent. Less than a fifth of salespeople in that unit met their Foundry sales growth targets. In July, Microsoft lowered those targets to roughly 25 percent growth for the current fiscal year. In another US Azure unit, most salespeople failed to meet an earlier quota to double Foundry sales, and Microsoft cut their quotas to 50 percent for the current fiscal year. The sales figures suggest enterprises aren’t yet willing to pay premium prices for these AI agent tools. And Microsoft’s Copilot itself has faced a brand preference challenge: Earlier this year, Bloomberg reported that Microsoft salespeople were having trouble selling Copilot to enterprises because many employees prefer ChatGPT instead.
Microsoft appears to have listened to the feedback. The adjustment, however, does not address the failure to implement the type of marketing probing process used by Halliburton and Booz, Allen: Microsoft implemented the “think it and it will become real.” The thinking in this case is that software can perform human work roles in a way that is equivalent to or better than a human’s execution.
I may be a dinobaby, but I figured out quickly that smart software has been for the last three years a utility. It is not quite useless, but it is not sufficiently robust to do the work that I do. Other people are on the same page with me.
My take away from the lower quotas is that Microsoft should have a rethink. The OpenAI bet, the AI acquisitions, the death march to put software that makes mistakes in applications millions use in quite limited ways, and the crazy publicity output to sell Copilot are sending Microsoft leadership both audio and visual alarms.
Plus, OpenAI has copied Google’s weird Red Alert. Since Microsoft has skin in the game with OpenAI, perhaps Microsoft should open its eyes and check out the beacons and listen to the klaxons ringing in Softieland sales meetings and social media discussions about Microsoft AI? Just a thought. (That Telegram virtual AI data center service looks quite promising to me. Telegram’s management is avoiding the Clippy-type error. Telegram may fail, but that outfit is paying GPU providers in TONcoin, not actual fiat currency. The good news is that MSFT can make Azure AI compute available to Telegram and get paid in TONcoin. Sounds like a plan to me.)
Stephen E Arnold, December 8, 2025
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