At the Web Summit in Vancouver, Canada, Microsoft president Brad Smith drew parallels between the forthcoming AI revolution and the transformative impact of electricity 140 years ago. Smith emphasized that AI is poised to become the next great general-purpose technology, driving the creation of a new economy. Microsoft is investing $80 billion this year to develop the necessary infrastructure to facilitate the widespread adoption of AI technology among businesses and individuals worldwide.
Smith highlighted that the advent of this new economy will bring about significant challenges. One of the critical questions, he noted, is whether we are building machines that surpass human capabilities or creating tools that enhance human potential. He stressed that technological advancements do not occur in isolation; they require a comprehensive ecosystem of supporting infrastructure and technologies.
For AI, this ecosystem is structured in three layers: infrastructure, platform, and applications. The infrastructure layer includes AI datacenters, specialized chips, land, electricity, and connectivity. The platform layer comprises AI software platforms, data, and foundation models. Finally, the applications layer involves AI-infused software and AI-powered devices. Smith pointed out that the ‘appliance layer,’ which makes AI accessible to the average person, is often overlooked but is crucial.
Smith drew historical parallels between the electrification process and the current AI revolution. Just as electrical appliances transformed daily life over a century ago, AI has the potential to create similarly magical experiences today. “We’re building the world’s next Industrial Revolution,” Smith declared, “and we have an opportunity to make it better than the industrial revolutions that we’ve experienced before.”
The discussion around AI inevitably raises concerns about job displacement. Companies like Microsoft, Amazon, and Salesforce are already replacing certain roles with AI agents. However, Smith emphasized that Microsoft’s focus is on developing technology that enables people to pursue better job opportunities rather than simply outperforming humans. He stressed the importance of ‘skilling’ people for the emerging economy and the jobs it will create.
Smith also acknowledged that the benefits of technological revolutions are not universally distributed, pointing out that hundreds of millions of people globally were left behind in the electrification revolution. He warned that without significant education, training, and potential changes in economic functioning, a similar outcome could occur with the AI revolution.
