Yahoo Finance Microsoft’s Satya Nadella reveals how AI will change jobs and companies
Microsoft (MSFT) CEO Satya Nadella has admitted that Artificial Intelligence (AI) will displace jobs but remains optimistic about the impact even as the IMF warned that almost 40% of jobs around the world could be affected by the rise of AI.
Nadella told an audience at London’s Chatham House on Monday that every big technological revolution displaces jobs but that the technology will help develop new career skills.
“There will be jobs, the question is the shape of these jobs. If anything, these tools can be very helpful with getting us the skills for what is the new set of tasks,” he said.
“Everyone can become an expert in anything because they have an AI assistant,” he added.
The International Monetary Fund (IMF) has warned that AI is set to affect nearly 40% of all jobs. The organisation said the impact will be greater for advanced economies, with around 60% of roles affected.
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About half of those workers will benefit from the integration of AI, which could boost productivity, but the remainder could see lower salaries, reduced hiring and, “in the most extreme cases, some of these jobs may disappear”, according to the IMF.
“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions,” IMF's managing director Kristalina Georgieva said.
Nadella has made a push for Microsoft to assume a global leadership role in AI. The company has a significant stake in leading AI startup ChatGPT maker, OpenAI, and reportedly invested up to $13bn in the startup. This alliance has been considered one of the tech industry’s most lucrative tie-ups.
Microsoft pushed for OpenAi’s chief executive Sam Altman to be reinstated after a messy corporate dispute in November.
Nadella and Altman are both scheduled to speak at the World Economic Forum in Davos, Switzerland, this week.
Its investment in ChatGPT creator OpenAI has allowed it to roll out Copilot, an AI enabled software assistant.
Going even further, a new Copilot key will ship on a variety of new PCs and laptops from Microsoft’s partners, providing quick access to Copilot straight from a keyboard button press.
The Copilot key is the first big change to the Windows PC keyboard layout in nearly three decades.
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The hype around AI has allowed Microsoft to overtake Apple (AAPL) as the most valuable company in the world.
On Friday, Microsoft’s market capitalisation stood at $2.887tn, a new record high for the company, and above Apple’s market cap of $2.875tn.
The last time the software giant earned the title of most valuable company in the world was back in 2021.
Read more: Microsoft topples Apple to become global market cap leader
Shares in Microsoft climbed over 50% in 2023 and analysts expect AI to take it even higher this year.
Other AI-focused tech players such as Nvidia (NVDA), Meta Platforms (META) and Alphabet ( GOOG), also witnessed a big jump in their market cap in the past year, Reuters reported.
At Chatham House, Nadella also said that he is "sanguine" about the risk AI poses to political elections.
“Election interference existed before AI,” the Microsoft CEO said, adding that the world can learn from these past election cycles.
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