"Expect this year to be filled with flux and uncertainty, thanks to lightning-fast changes wrought by AI, and by a Trump Administration that rules by whim and fiat rather than facts and law. So, I know it's something of a fool's game to make predictions about what the year ahead might bring for Microsoft. That said, I've never worried about being called a fool. So here are my five predictions for what Microsoft can expect in 2026."
"There have been plenty of worries about what people believe is an AI bubble. As a McKinsey report cautions: "Nearly eight in 10 companies report using gen AI - yet just as many report no significant bottom-line impact." Then there was that MIT report, The GenAI Divide: State of AI in Business 2025, which found that 95% of genAI pilots fail."
"Its finance chief, Amy Hood, said during the company's most recent earnings call, "I thought we were going to catch up [with demand]. We are not. Demand is increasing. It is not increasing in just one place. It is increasing across many places." She added that Microsoft has $400 billion under contract for future sales. "That's for booked business," she said. "Today." (That number doesn't include $250 billion in computing power for AI that OpenAI has agreed to buy from Microsoft.)"
Rapid AI changes and an unpredictable Trump Administration create significant flux and uncertainty in technology. Microsoft has embraced AI extensively and faces accelerating demand for AI services. Concerns about an AI bubble persist, with surveys showing widespread genAI adoption but limited bottom-line impact and a report finding 95% of genAI pilots fail. Despite industry failures, Microsoft reports overwhelming demand, $400 billion in booked future sales contracts, and an additional $250 billion in computing commitments from OpenAI. Those commitments position Microsoft to avoid major disruption from AI industry shakeouts and to continue advancing into the next generation of generative AI.
Read at Computerworld
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