Microsoft CEO Satya Nadella warns of AI becoming a bubble: Here's why

Microsoft Chief Executive Officer Satya Nadella warned that if the benefits of artificial intelligence (AI) are not "evenly distributed," it may soon become a bubble.

 

Speaking at the World Economic Forum 2026 Annual Meeting, Nadella said the benefits of AI need to be much more evenly distributed to avoid it from becoming a bubble. "For this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread," he said.

 

Nadella highlighted that it will be a "tell-tale" sign of a bubble if all the AI talk focuses only on the supply side or the technology companies.

 

'Need to focus on increasing AI diffusion'

Nadella said that the main concern is increasing the diffusion of AI. "I think when it comes to AI, the real question in front of all of us is how do you ensure that the diffusion of AI happens, and happens fast," he said.

 

“I am much more confident that this is a technology that will, in fact, build on the rails of cloud and mobile, diffuse faster, bend the productivity curve and bring local surplus and economic growth all around the world," he said.

AI should do something useful: Nadella

He noted that AI should be utilised to enhance the lives of everyone, from improving educational outcomes to increasing public sector efficiency. "We as a global community have to get to a point where we are using AI to do something useful that changes the outcomes of people and communities and countries and industries," he said.

 

He added that the role of AI needs to be examined across all aspects of life, such as how it is helping pharmaceutical companies bring critical drugs to market faster or accelerate trials. He called for AI-driven economic growth rather than just increasing spending.