Dialogue with Microsoft CEO Nadella: AI created more jobs than it destroyed

[NetEase smart news March 28 news] since the last Microsoft CEO, Satya Nadera has been considered to be the hero of reshaping Microsoft. In an interview, he explained why he valued the public cloud, the impact of artificial intelligence on employment, and the improvement in the flow of labor caused by artificial intelligence to protectionism.

One of the actions to reshape Microsoft is cloud services. What is the principle?

In the past three years, there have been three major parts of what we have done in this area. Frankly, first of all, we need to have a very clear understanding of the sense of purpose, identity, and corporate presence.

The birth of Microsoft originally came from Bill Gates and Paul Allen to develop the BASIC language for Altair. Obviously, great changes have taken place at the technical level.

But in the Microsoft culture we create, the sense of purpose and identity are still very important. What we are doing is both "giving people fish" and "giving people fishing", that is, putting technology into the hands of others and allowing them to continue to create new technologies.

This is my view of Microsoft's platform and what we are doing. We are thinking about people, as well as institutions established by people and surpassed by others. We consider this issue in a global framework.

If it weren't because I was exposed to Microsoft's technology when I grew up in India, I wouldn’t be able to go today. We are thinking about the future.

But the last point I would like to make is perhaps the most important: the development of technology has no end. What really matters is to apply it, for example, students write papers, small companies increase productivity, large companies increase competitiveness, and the public sector increases efficiency. This is what we really want to see. This is also the core issue.

Changing the world is not just about technology itself. When you are full of sense of purpose, the things to do in front of you will become very clear.

In today's world, as a technology company, you must have advanced ideas to understand the technology paradigm you want to innovate. This is what I call cloud computing first and mobile first.

It is not only about the mobility of the device, but also the mobility of the user experience. It will involve all the electronic devices in your home. Even today, we can see this from many startup companies. Taking the Internet of Things as an example, the technology for obtaining data from all calculations is becoming ubiquitous. Cloud computing will make mobility more feasible today.

This is why we are building a cloud infrastructure for the new trends in distributed computing and operating it on a global scale. Our global business scope is bigger than any company. We are more law compliant than any company and have more data.

The Azure stack has allowed us to accelerate the deployment of hybrid clouds. This means that the information is public. The customer cares about it, the government cares about it. Therefore, this is our bet and our investment. It can truly become a new platform for economic growth.

What do you think about India Stack and Indian digital projects?

I must say that this is very exciting. The India Stack aims to create a transaction vision that requires no presence, no cash, and no paper. Fundamentally speaking, it will reduce transaction costs in the economic field and allow every citizen, small business, and large company to benefit from it. This is a magnificent vision. We are committed to innovating technologies such as Office 365, Dynamics 365, Windows 10 and Azure to help the India Stack project leverage all our technologies.

Do you think that India is far ahead of other emerging markets in this area?

Different countries do different things. But I want to say that India has a very comprehensive understanding of the stack.

Of course, this is just an idea, and you need to make it work. And what I see in India, the authentication and transaction volume in this field are huge. India has experienced more than two governments over the past 8 to 9 years. This shows that India has continued to implement the India Stack project beyond the party factions and political election results.

With the advent of artificial intelligence, India has begun an interesting general discussion that is universal basic income. Since India needs to increase its employment rate, what may be the impact of artificial intelligence on employment?

Don't just categorize or think about it. If you can focus on artificial intelligence in a global perspective, you will see that it will bring tremendous economic growth. India is a model of economic development. However, from a global point of view, the once-4% growth rate has now dropped to 2%. Therefore, we need new technological breakthroughs to restore the level of growth in the 20th century. Artificial intelligence will benefit us a lot.

The question is: Once the surplus has been generated, how will it be distributed fairly? I recalled the period of the Industrial Revolution, when there was an inequality in the return of labor and capital, and a subsequent worker movement. It was also at that time that the social security mechanism was introduced. I think we need to develop new mechanisms. I know Indians are discussing "What is universal basic income?" But apart from social systems and skills, there is something that what economists call "labor synthesis errors," which has always proved to be wrong. The amount of labor required in the industry is not fixed. What we need is different types of labor.

Perhaps from the manufacturing industry to the service industry, this is a difficult transition process. As an employer, you need to train new employees for these new jobs created. You need continuous learning and training skills, not only high-end knowledge, but also medium-level skills, but also need vocational training with machines and artificial intelligence.

But it was as if we had already had artificial intelligence, and it was too exaggerated and digressive. It is best to focus on the immediate issues.

What are the applications of artificial intelligence in India?

The government of Andhra Pradesh uses artificial intelligence to identify students who drop out of high school and then use these sources in more suitable areas. The same situation now occurs in Jharkhand and Punjab. Artificial intelligence does bring benefits, but at the same time we also need to be cautious about the transition of policies and skills.

Do you mean that history has proven that new technology creates jobs more than they destroy? It's just that we don't know what the essence of these jobs is.

Yes, that's right. In addition, history has also proven that if there is a world that does not require work, then there is no need to discuss such things as universal basic income, because without it, the surplus still exists. So, the question is how do people use it?

Another point I want to make is that in a country like India, there will be a service-oriented economy that will create many job opportunities. And there are many things that artificial intelligence can never do, such as showing compassion to human beings.

When artificial intelligence emerges in large numbers, true intelligence can become scarce, such as empathy and common sense. At that time we can create jobs that require these true intelligence.

Have you noticed the movement of labor, especially in the context of increasing protectionism?

In the technology industry, many people worry that talent will flow to the United States... My opinion is that as a multinational company, our top priority is to conduct business around the world and ensure that we can truly contribute to the global market. In the case of India, we do not measure its success with the highest or lowest standards.

If you do not create job opportunities, then no matter if a society is at the top or bottom of the pyramid, stability cannot be achieved. The direct employment level industry is a measure. Is there employment in the ecosystem partners around Microsoft?

We have no reason to be a rent-seeker. Instead, we must create opportunities. We have more than 10,000 partners. Their operations, how they create jobs, and the evolution of their business models are all issues that we need to consider. How can we create value in education, health, the public sector, small and large companies? This is the core issue. Labor mobility in countries around the world will be defined by each country’s immigration policies, trade agreements, or protectionism. Each country should give priority to the interests of its own country.

In India, India is a priority. In the United Kingdom, the United Kingdom is a priority. In the United States, the United States is a priority. What Microsoft has to do is create opportunities for them in all countries that uphold this principle.

The United States has a unique social system. Whether it is you or someone like Google CEO Sandal Pichai, you can create excellent companies based on value. Do you see this change?

As I said, there are two core principles that I have always kept in mind. One is what I mentioned earlier. Multinational companies have business in every country, and they must have a sense of responsibility to create opportunities for the local community.

The other is to truly accept the values ​​of the United States. After all, we are a multinational company that started in the United States. The values ​​of the United States have always been inclusive and diverse. The United States is a paradise for immigrants. And I have a deep understanding of these two principles.

The first principle made it possible for me to get in touch with U.S. technology in India and make it possible for me to realize my dream. The second principle is that the enlightened policy of the United States has helped me to truly realize my dream. I think these will be what we have always advocated.

Regarding the question of changing or not changing, I think that the U.S. system and the U.S. country will always adhere to this lasting value and will always stand on this stance. However, some policy changes may occur. It is reasonable for the government to pay attention to national security interests and related immigration policies. I have always maintained an optimistic attitude toward the American dream and the enlightened immigration policy of the United States, especially the introduction of high-tech talent.

Do you have any suggestions for certain troubled unicorn companies in India?

Entrepreneurship needs to persist. Persevere without being shaken by anything. People often exaggerate the facts and it is easy to become negative. Do not be influenced by these two emotions. I would suggest that these companies focus their attention on business and customer value.

Binny Bansal, a former Amazon executive and co-founder of Flipkart, India’s largest e-commerce company, will also discuss the same topic in the fashion industry. How can they innovate in the fashion industry to meet the needs of Indian consumers? This is the criterion for defining success or failure. Having real technical planning, investing in the right field, gaining the greatest influence, and establishing a good partnership are the things that I want to focus on. Indian entrepreneurs are world class with their ambition, management skills and technical capabilities.

Competition will only make you stronger. Recall, when did Indian companies compete on an equal footing with multinational corporations for the last time? This is a breakthrough in itself.

Some people in India have already begun to promote Chinese-style development policies. Flipkart and Ola openly support learning the Chinese model. What do you think of it?

For India, the Indian government should make policy choices based on India’s priorities. "Made in India" and "Digital India" are two very good policies in this country. Therefore, both local entrepreneurs and foreign capitalists will provide services based on these established policies.

From Microsoft's point of view, we have invested heavily in the data centers of Indian companies and public sector organizations. This is good. If in one country, the injection of foreign capital is only for the purpose of extracting rent, and local policies do not care about this, then this may not be a good policy. People in India and elsewhere definitely need such industrial policies.

You will be publishing a new book, Hit Refresh, as a writer. What is this book about?

In most cases, business books are written after the end of the term. What I think about is how to write my thoughts about my life experience and the process of innovation at Microsoft during my term of office. In the exciting era of technological change, geopolitical change, and Microsoft's cultural change, as a CEO of a multinational company, I will see how the world changes. This is what I wrote.

I was not asked to write it. I am still thinking about the rest of the book. So, let me finish this and talk about it.

Who do you generally seek advice from?

One thing I was lucky was that there was a group of people around me who could give me advice and they were good mentors. For example, Bill Gates and I have worked with him for a long time. Few people can have long-term thinking on the technical or non-technical side like him. But I also learned a lot from other CEOs. For example, GE's CEO Jeff Immelt. As a multinational company that needs to have a sense of responsibility for global business, Jeff Immelt has very deep insights on this.

In addition, Ray Hoffman, one of the founders of LinkedIn, deeply thought about the development trend of science and technology, and also discussed the social impact of science and technology. There is also Nandan Nilek, one of the founders of India's super-large IT company. Talking and studying with him is very interesting. He has worked in the public sector and has an understanding of the government's work. All these have a lot to do with the success of the India Stack project. It is fortunate to be able to learn from all kinds of people.

What happened to the acquisition of LinkedIn?

very very good. We completed the acquisition in December 2016 and I look forward to visiting our LinkedIn team in Bangalore. We are very excited about the development of this part of the business. In addition, in any acquisition, whether it is Minecraft or LinkedIn, I would think of something: What unique value Microsoft can bring to the other side. Integration with Outlook/Office 365 or Dynamic 365 is valuable to any professional.

Microsoft needs to reach over one billion professionals every day, and LinkedIn is the social bridge that connects these professionals. We are excited about the future of innovation and are looking forward to LinkedIn and LinkedIn's development in the field of skills development.

(Source/Economic Times Translator/Machine Editor/Small Ka)

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