NEW DELHI, India — Microsoft Chief Executive Officer Satya Nadella said 2026 will be a pivotal year for artificial intelligence, as the focus moves from experimentation and excitement toward practical, real-world adoption.
In a recent blog post, Nadella said the AI industry is beginning to move past flashy demonstrations and is now distinguishing between spectacle and substance to better understand where the technology can deliver meaningful results.
He noted that while the pace of AI development has been extraordinarily fast, the ability to apply these powerful systems in practical ways has lagged behind. Nadella described the current phase as a “model overhang,” in which AI models have become more capable than society’s ability to use them effectively across everyday life, business, and public services.
“We are still in the opening miles of a marathon,” he wrote, emphasizing that despite rapid progress, much about AI’s long-term trajectory remains uncertain. Many existing capabilities, he added, have yet to translate into large-scale improvements in productivity, decision-making, or overall human well-being.
Drawing a parallel with the early days of personal computing, Nadella referenced the idea of computers as tools that enhance human thinking. He argued that this concept must evolve in the age of AI, with systems designed to support and strengthen human judgment rather than replace it.
According to Nadella, the true value of artificial intelligence lies not in the raw power of its models, but in how people choose to use them. He said debates should move away from labeling AI outputs as either simplistic or advanced and instead focus on how humans adapt to working alongside these tools in daily decision-making.
He also stressed that delivering real impact will require more than building increasingly sophisticated models. The industry, he said, must develop complete systems around AI, including reliable software, workflows, and safeguards that enable responsible use.
While acknowledging the rapid pace of progress, Nadella said current AI systems still have limitations and rough edges that require careful oversight as the technology continues to mature. (Source: IANS)
