Hyderabad: Microsoft has announced a restructuring of its business unit reporting to provide investors with a clearer understanding of the impact of artificial intelligence (AI) on the company’s financial performance. This change is aimed at offering greater transparency, as the company continues to emphasize the growing importance of AI across its operations.
The restructuring includes reallocating some search and news advertising revenue. Additionally, Microsoft is shifting revenue from AI and speed technology services to its productivity business unit, anticipating growth in revenue and capacity following these changes.
The change is a result of investor pressure on major tech firms, like Microsoft, to demonstrate the return on the billions of dollars they have been spending on AI. The company has reported slow growth, even after informing that the cloud business growth would pick up speed in the second half of fiscal 2025.
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