Microsoft is fundamentally reshaping its approach to selling artificial intelligence, as revealed in a recent internal memo from Judson Althoff, the company’s Executive Vice President and Chief Commercial Officer. The memo outlines a sweeping strategy shift: Microsoft will move away from traditional sales roles, instead prioritizing technical experts to lead the charge in promoting and implementing its AI solutions. This comes on the heels of significant layoffs, with thousands of salespeople being let go and many of their roles slated to be replaced by more technically skilled employees.
The memo, first reported by Business Insider, describes Microsoft’s ambition to become the “frontier AI firm.” This new identity is rooted in the belief that selling AI requires deep technical knowledge and hands-on expertise, not just traditional sales tactics. Althoff’s directive signals a clear pivot: Microsoft’s future in enterprise AI will depend on its ability to deploy technical talent that can both sell and implement complex AI systems for clients.
Microsoft faces fierce competition from OpenAI and Google, both of which are aggressively expanding their enterprise AI offerings. To stay ahead, Microsoft needs sales teams that can speak the language of AI and guide customers through technical deployments. As AI solutions like Copilot, multi-agent orchestration, and Azure AI Foundry become more sophisticated, customers require technical guidance to integrate these tools into their operations.
Enterprise clients now expect consultative partnerships, not just product pitches. They want vendors who can solve real business problems and customize AI systems to their needs.
Thousands of sales roles have been eliminated, with plans to hire more technical experts in their place. These new hires will be responsible for both selling and deploying AI solutions. Microsoft will prioritize roles such as solution architects, AI engineers, and customer success managers—employees who can demonstrate, customize, and troubleshoot AI products in real time.
The company is betting big on Copilot and AI agents, positioning them as digital coworkers that can automate tasks, streamline workflows, and deliver business insights at scale. Microsoft’s new sales approach is designed to help customers realize the full value of these technologies, from initial consultation to deployment and ongoing support.