Microsoft CEO Satya Nadella spoke at the 2026 World Economic Forum about the need for AI to benefit society, not just tech companies. He warned that without tangible improvements for people, communities, and industries, AI risks losing what he called “social permission.”
Discussion With BlackRock CEO
Nadella discussed AI diffusion with BlackRock CEO Laurence Fink. Fink asked how AI spreads across economies, companies, and people. Nadella emphasized that admiration for AI as a technology is not enough. He said it must change real-world outcomes, like health, education, public sector efficiency, and competitiveness in businesses of all sizes.
“If AI tokens are not improving these outcomes,” Nadella said, “we will quickly lose permission to use scarce resources like energy for them.”
Resource Strains From AI Infrastructure
The rapid expansion of AI infrastructure is straining multiple resources. High-bandwidth memory for GPUs is in short supply, with data centers expected to consume 70% of memory chips made this year. Shortages are starting to affect other hardware, including GPUs and smartphones.
Electricity demand is also rising. Prices have spiked by as much as 36% in some states, and wholesale rates have jumped by up to 267% over five years. AI data centers also require huge amounts of water for cooling, reportedly more than the volume of bottled water consumed globally in a year.
U.S. lawmakers and politicians have noticed. Some Democratic Senators are questioning big tech about energy use, while former President Trump has told AI companies to “pay their own way” for electricity.
Community-First AI Infrastructure
Microsoft is responding with its “Community-First AI Infrastructure” program to reduce the local impact of AI data centers. OpenAI has pursued similar measures. It is unclear if other large tech companies will follow.
Avoiding an AI Bubble
Nadella also warned of the risk of an AI bubble. He said benefits must reach beyond the tech industry. Otherwise, the investment rush could create hype without real-world impact.
He highlighted pharma as an example. AI is being used to accelerate clinical trials, not to magically invent new drugs. Nadella said the technology helps with practical steps that make the innovation process more efficient.
Outlook
Nadella remains optimistic. He said AI can increase productivity and economic growth worldwide if applied responsibly. The key, he emphasized, is ensuring benefits reach communities, industries, and countries—not just tech firms.
