Satya Nadella: Microsoft CEO Satya Nadella on the early impact of AI on companies – Times of India

Microsoft has made a rather long-term bet on AI and while it’s still early days, CEO Satya Nadella said that it is making significant progress. During the earnings call with investors, Nadella outlined the relationship with OpenAI and how it works. “there are two parts to OpenAI, right? There’s the models themselves with our partnership with OpenAI. That’s sort of one type of spend on compute,” Nadella told investors. He further said that the other side is much more revenue-driven, right, “which is we will track the inference cost to the revenue and demand and you’re already seeing both of those play out.”

An important quarter for Microsoft
It was a rather significant quarter for Microsoft as this was the period when the early impact of AI integration can be actually seen. For instance, in this quarter Microsoft introduced Windows Copilot and Nadella said that the company is “excited to put it in the hands of more people in the coming months.”

Microsoft is one company that is pitching AI solutions not just to everyday users but to organisations as well. It is this area where Microsoft has actually shown significant numbers.
Nadella spoke about how more than 1 million organizations now count on Microsoft’s “comprehensive AI-powered solutions to protect their digital estate across cloud and endpoint platforms, up 26% year over year.”
He also said that more than 60%, including leading enterprises like ABN AMRO, Dow, and Heineken, “use four or more of our security products, up 33% year over year, underscoring our end-to-end differentiation.”
About four months ago, Microsoft also introduced 365 Copilot for enterprise customers. “We are now rolling out Microsoft 365 Copilot to 600 paid customers through our early access program, and feedback from organisations like Emirates NBD, General Motors, Goodyear, and Lumen is that it’s a game changer for employee productivity,” Nadella said.
“We are not a small business anymore in any of these things. We’re significantly — we are at significant scale. And so, yes, we celebrate,” he added.