Microsoft CEO Satya Nadella Exclusive Interview | AI-Led Business Will Add To $5T Indian Economy

sat it's always great to have you join us here it's uh great to see you back in India thanks very much for your time we were here in this same room exactly a year ago SAA uh where the big breakout moment for chat GPT had happened and I know you were excited about it but in the last 12 months it's almost as if no one can talk about anything else but AI whether it addresses climate change or cancer it's this sort of uh Elixir that everyone's talking about between the headlines and the hyperboy where are we in the Journey today and more importantly over the next 5 years where do you believe we will we will be no first of all sh it's fantastic to be back in India and to be with you and you're right I mean a lot has happened even since last year I was very excited about sort of the prospect of what AI could mean uh I was very stunned even at that point seeing how some of the leading model work we done uh was diffusing in India and and even in you know like something like the public sector right that was the first time I saw the jugle B demo coupled with gp4 and I was like really it was a drop the mic moment for me and to come back a year after and we're no longer just talking about AI I mean some of the use cases I talked about this morning I saw from customers you know commercial customers nonprofit organizations I think this is the fastest rate of diffusion of anything new I've ever seen uh and to your point why why is this excitement because I think it's tangibly changing economic productivity uh whether it's for software development Frontline work in retail and Healthcare whether it's a access for a citizen or a rural you know say a new immigrant uh into the urban area in India to be able to access Services I've not seen a general purpose technology like this that can have that type of broad impact and that's where I think the excitement comes from well speaking about the excitement SAA you know let's also talk about the disruption because while we are talking about productivity gains and what this does to work flow what will it do to work force is the question and you know where where do you stand on that yeah first of all I think you know at the core level I think we should not you know we should sort of go back to the lump of Labor fallacy I think labor markets are a lot more Dynamic than we give them credit to but at the same time we should be clear right about any displacement so couple of things that we can do one is Skilling uh one good thing about this generation of AIS is it actually reduces the learning curve not increases the learning curve so even for somebody displays midc career you can pick up new skills faster easier so that's sort of one the second thing it does is it's sort of if the the previous error was about information at your fingertips I think of the AI era as expertise at your fingertips so you can take somebody who's in the front line whether it's in retail or whether it is in healthcare it perhaps will even improve the wages because they're they are now able to give more expert Health advice or more expert work is being done by non-experts they may have domain expertise uh but they may not have all the knowledge and so therefore I think that they could even be better wage supportting new jobs one of the coolest examples I saw right here in India in fact it sort of incubated in MSR and after that the founder of Kara took it and created uh ker which is about taking AI jobs these are new jobs that didn't exist around labeling data uh and what have you that are now being essentially syndicated out to rural India uh where women mostly are able to find wage support better wages 20x wages uh compared to what is the general wage uh for doing AI jobs so I think we will have new jobs will your ability to go up the learning curve will be faster and better and even better wage support for some of the things that are in the front line but in the short term do you believe that we are actually going to see more job losses than we do see job creation because we've already started to see companies talking about restructuring on account of adopting AI yeah I think that what is happening some of it is just adjustment I think this is where I think as I say labor markets adjust right if you take take software development the reality is there is a need for more software developers all over the economy not just in the tech sector so that's where I think you know if there is one sector that's getting quote unquote more efficient some of the labor force in that sector will disperse more broadly I think uh so I think that yes I'm not at all saying that there is not going to be displacement like with any new technology we've seen it uh but I also am very optimistic that we even have both the policy tools and the actual tools to help us manage this transition in a net positive way for even a country like India you know speaking about managing this transition what is it going to mean in terms of investment Satya at a company level let's talk about Microsoft you did talk about disproportionately investing in building out AI across your Tech stack uh and for the industry in general what are we talking about in terms of Investments yeah so for us we are obviously very very excited by what we're seeing in India at the end of the day we are putting our Capital we're building out our own data centers we have four regions we have you know we'll keep expanding that uh we're investing our you know in our own people uh here both India as a source of human capital that's producing products for us all over the world but also us helping customers the IT services companies that serve the world from here equipping them with the latest and greatest so that's I think I would call it the core of what we do uh but beyond that I would say the investment here is if you have a new general purpose technology India has a tremendous opportunity to use it in a broad sectoral way public and private sector across every industry Healthcare Retail Energy what have you we want to make sure that we are there you know I I'd like to tell we we talk a lot about co-pilots and I want us to be the co-pilot for India as it really takes advantage of AI creates in fact its own AI products across all of these sectors and exports them to the world do you have a number though you know of what it will take for Microsoft to to invest here in India and also what Indian companies will need to do in ter of further invest the economic data I've seen is if Indian economy is going to be like say five trillion the AI driven part of it could be something like maybe 10% of it maybe 500 billion of it so what we are going to do is and all of that is being powered by things like Cloud compute with these Frontier models open source models small language models and so on and so our capital investment and human capital investment will really fit into that so the way I think about it is if Microsoft has X Revenue inside a country that means there needs to be 99% more Revenue created because of the output of compute and so that's kind of how we'll invest you know uh I I want to talk about open Ai and of course your partnership with open AI s Walman said it's it's one of the greatest Tech bromances uh but you know how do you drisk yourself uh I know that you've said you're not really uh interested in what the board seat does for you but obviously you do want to ensure that there is stability as far as open the ey is concerned how do you drisk yourself from a commercial perspective have you renegotiated your commercial terms for instance do you intend doing that yeah I mean first of all I've grown up in a company that has always created lots of Enterprise Value by partnering and partnering well right I grew up in a company that you know where Microsoft and Intel really brought together the advances that Intel made and what we did with Windows same thing with sap in fact I built our database business in partnering deeply with sap so I at some level this is core to us and so the latest example of that is what open Ai and Microsoft have been able to do so we are very very comfortable uh with the partnership what it has achieved to date of course we want stability in open AI we are very excited about the new board uh we have an observer seat we uh we really are not you know we we we were comfortable before and we are comfortable now and we are really looking at the end of the day we want to be good partners where open AI can succeed with us and we can succeed with open eye but more importantly at the end of the day it's our customers and partners who rely on the two of us just like how the PC Revolution was created by Intel and Microsoft we hope the open AI Microsoft relationship creates the AI Revolution you said you're waiting for competition where do you believe competition is going to come at you from it's going to come from everywhere right you know I think that all of our big Tech peers are you know fasted work work on all of this and so it's fantastic I mean therefore one of the things that is I think understated is competition amongst big Tech players I think it's very healthy right when you have all of the folks competing with each other that means uh it's creating real opportunity for uh the world to benefit uh new entrance right always whenever anyone gets excited about sort of the existing incumbents you have to watch out for new entrance and there an open AI is a great example after all open AI wouldn't have existed but for our support early on but they're are very incredible you know uh company today and we're excited to be able to sort of really be playing our part in it s let me end by asking you a decade now at Microsoft at staring things at Microsoft and it's a very different company in so many ways 3 trillion in market cap to just start with what are you proudest of over the last 10 years of of the changes that you've been able to achieve and more importantly what do you see as being the the engines that will drive Microsoft from here on it's a great uh point Shireen in fact the way I count my time is this is my 32nd year uh at Microsoft and my fourth big platform shift right I was lucky enough to be part of uh the PC client server the Web Internet uh mobile cloud and now ai and this is year two of AI if anything I'm going back in time to your point of learning from what was it like when year two of the PC Revolution year two of the browser year two of say the cloud uh and ensuring and the only the lesson I learned is you got to really take the new tech lean in completely democratize it and have Innovation right because at the end of the day there is no franchise value in our business uh what M matters is can you see long before it's conventional wisdom can you really make it to the other side and then really create that platform and that's what I'm excited about saela always a pleasure many many thanks for joining us on CNBC TV8 we wish you the very best and we look forward to seeing you back here in India thank you so much

Channel: moneycontrol

Views: 140,953

Keywords: moneycontrol, moneycontrol news, business news, money control, satya nadella, satya nadella interview, satya nadella in india, satya nadella interview 2024, satya nadella on ai, microsoft ceo, microsoft ceo interview, microsoft ceo satya nadella, microsoft ceo in india, microsoft ai, satya nadella ai interview, ai in india, artificial intelligence, shereen bhan, satya nadella moneycontrol, indian economy, india 5 trillion economy

Id: VP2O0AC9hn4

Length: 10min 41sec (641 seconds)

Published: Wed Feb 07 2024