Degrees of Change

Foreword

—Brad Smith, Vice Chair and President of Microsoft

In just a few short years, artificial intelligence has moved from research labs into the hands of billions, not just at Microsoft or within the tech sector, but across society. Generative AI has become the fastest-spreading technology in human history, adopted at a pace that even the most seasoned technologists could scarcely imagine. This speed is breathtaking, but it also compels us to pause and ask, “Are we ready for what comes next?”

AI’s promise is extraordinary. It can help solve problems that have challenged humanity for decades—improving health outcomes, advancing education, and unlocking new opportunities for economic growth. But, like every transformative technology before it, AI brings new questions and new responsibilities. How do we govern its use? How do we ensure safety, protect privacy, and prevent harm? And, perhaps most importantly, how do we make sure its benefits are broadly shared, not concentrated among the fortunate few?

In January 2025, Microsoft launched the AI Economy Institute, a think tank dedicated to helping societies adapt to the economic and social transformations driven by AI. Its mission is simple yet profound: to promote independent research and learning that yield practical insights into the impact of AI. Through research, partnerships, and policy engagement, the Institute seeks to turn these insights into impact—building the foundations for shared growth and economic resilience ...