Microsoft CEO Satya Nadella shared his advice to bosses on navigating AI's tech, model, and organizational shifts

"When Microsoft CEO Satya Nadella looks at the rise of artificial intelligence, he doesn't just see a new technology wave. He sees a complete rewiring of how companies build, sell, and organize themselves. Speaking to TBPN at GitHub Universe on Tuesday, Nadella said business leaders must prepare for a tech shift, a business model shift, and an organizational shift all at once - a combination he described as unlike anything the industry has faced before."

""It's kind of like rewiring yourself - unlearning is the hardest part. Learning is easy. Sometimes if you have to unlearn and learn, it's much harder." Microsoft, he said, has spent decades adapting through major transformations - from the rise of the internet to the shift to cloud computing. But AI introduces something new: the arrival of true marginal cost software, where every new unit of output - from code to design to content - can be created almost costlessly."

AI is rewiring how companies build, sell, and organize, producing simultaneous technological, business-model, and organizational shifts. The product development process is being replaced as code and knowledge increasingly come from intelligent systems rather than humans alone. A new production function requires leaders to unlearn legacy practices and adopt AI-driven workflows. The emergence of true marginal-cost software means additional units of output—code, design, content—can be produced almost costlessly. Companies must shift mindsets, restructure operations, and rethink monetization as AI lowers per-unit costs and changes how products are created, sold, and operated.

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