Advancing prosperity in the age of AI
We are on the threshold of the fourth industrial revolution, powered by the transformative potential of artificial intelligence (AI).
Over the next quarter-century, AI will drive unprecedented advancements across every sector—from healthcare to energy to education—ushering in a new era of global prosperity and growth.
But to ensure everyone benefits, we must heed the lessons of history: broad adoption, infrastructure investment, and access are critical. And achieving this will require a collective effort.
AI is the next great General-Purpose Technology
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A single-purpose tool, like a lawn mower or a smoke detector, excels at one specific task.
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General-purpose technologies, or GPTs, can transform nearly all aspects of a society and its economy. These uniquely powerful technologies—like electricity, the steam engine, or computing—can reshape industries, create new ones, and transform the way people live and work.
GPTs have driven each of the past three industrial revolutions. Artificial Intelligence is the next great GPT and will drive the fourth industrial revolution—ushering in a new era of economic growth and prosperity.
GPTs of the past have driven every major industrial revolution
Unlocking economic growth through AI adoption
Fostering economic growth with AI
At Microsoft, we’re not just developing products for each layer of the AI tech stack—we’re supporting the entire ecosystem. A competitive AI economy depends on strengthening every layer:
Infrastructure: AI datacenters, advanced chips, and reliable power sources form the foundation, much like power plants did in the second industrial revolution.
Platforms: Scalable foundation models, data integration, and new software tools empower developers worldwide to create transformative applications.
Applications: From HR tools to sales platforms, AI-driven applications will reshape every part of every organization, driving innovation and efficiency.
Number of Microsoft datacenters
Equipping the workforce for the AI era
The success of the AI economy depends not only on technological innovation but also on equipping people with the skills needed to thrive in this new era. AI is a tool that amplifies human potential, but its benefits can only be fully realized when individuals and organizations are prepared to use it effectively.
To address this need, skilling must focus on three key areas:
Foundational skills
Applied AI
Advanced AI development
Together, we can build a better future with AI
By prioritizing broad AI adoption, we can ensure that its opportunities and benefits are far-reaching. This requires collaboration across industry, governments, and civil society—each doing their part. At Microsoft, we’re committed to building a new AI era based in responsibility, access, and fairness.
AI can help us create a better world
The path forward
Governments
Civil society
Industry
By working together, we can ensure that AI not only drives economic growth but also addresses global challenges. A collaborative approach will help build trust, accelerate adoption, and create a more prosperous future for all.
Lesson 2:
AI Access is essential for shared growth
To unlock AI’s full potential, we must prioritize access, ensuring its tools and technologies are available across geographies and contexts where they are most needed. History offers a cautionary tale: even 150 years after the advent of electricity, nearly 740 million people still lack access to power. Without deliberate efforts, AI could follow a similar path.
Lesson 3:
Thriving economies require robust GPT ecosystems
Every industrial revolution has been powered by a robust ecosystem of essential resources, infrastructure investments, and workforce training. AI is no different. To build a thriving economy in the AI era, governments, civil society, and industry must come together to strengthen the entire ecosystem necessary to remain competitive.
Infrastructure
- AI datacenters
- Chips
- Land and power
The infrastructure layer is the backbone of the AI stack, providing the computing power, data storage, and hardware to run AI models and drive advanced technologies. Like power plants in the industrial revolution, this AI-driven era demands significant investment in infrastructure, including datacenters with millions of servers and cutting-edge semiconductor chips, all powered by reliable electricity and connectivity.
Platform
- AI app platform
- Data
- Foundation models
The platform layer provides frameworks and tools for developers to create, train, and deploy AI applications, making AI scalable and accessible globally. By integrating foundation models like OpenAI, training data, and platform-level services, it equips developers with a streamlined toolchain to build and distribute applications efficiently within the AI stack.
Applications
- Copilot extensibility
- Copilot + agents
- Copilot devices
Applications are where AI is used to create tools that solve everyday problems, transforming functions like HR, finance, software development, and sales. These AI-driven apps will drive productivity, reshape organizations for the better, and give workers new ways to innovate. Many of these will be built by Microsoft—but many more will be built by other companies leveraging others’ AI tools and infrastructure.
Responsibility
Supporting the physical and cyber-security needs of all AI models and applications that run in our AI datacenters.
Applying a Responsible AI Standard to prioritize fairness, reliability, safety, privacy, security, inclusiveness, transparency, and accountability.
Investing in initiatives to expand AI skilling globally to help people thrive in the AI economy.
Managing our AI datacenters with environmental sensitivity, including committing to carbon-free energy and sustainable operations.
Access
Growing chip capacity and expanding Microsoft’s cloud computing AI infrastructure to support the training and deployment of diverse foundation models.
Making AI models and development tools widely accessible to developers worldwide, enabling every nation to build its own AI economy.
Partnering with organizations to ensure AI tools and resources are deployed where they are most needed.
Fairness
Providing public APIs so developers can access and utilize AI models hosted on Microsoft Azure.
Supporting interoperable public APIs to enable seamless integration for developers and network operators.
Ensuring developers retain control of how their AI models and applications are distributed and sold.
Respecting developer autonomy by committing not to use non-public data from their AI projects to compete with them.
Facilitating data portability to ensure customers can easily switch between cloud providers.
Saving the eyesight of children
Diabetic retinopathy, a leading cause of blindness affecting over 500 million people globally, can be detected early with AI. Microsoft has partnered with startups like IRIS to create AI-powered diagnostic tools that are 97% as accurate as ophthalmologists. These tools work on any smartphone with a camera, enabling early detection and treatment for people in remote and underserved areas, potentially saving millions from preventable blindness.
Accelerating clean energy innovation
Through partnerships with organizations like the Pacific Northwest National Laboratory (PNNL), Microsoft is using high-performance computing and AI to speed up material discovery for sustainable energy solutions, such as advanced batteries. This approach shortens the time from research to market, fueling innovation and creating jobs in clean technology sectors.
AI-powered learning for every student with Khanmigo
In partnership with Khan Academy, Microsoft’s Khanmigo leverages AI to create an interactive and personalized tutoring experience. It helps students grasp complex concepts through tailored feedback and guidance, empowering teachers to better address individual learning needs. By combining the strengths of AI and human instruction, Khanmigo supports both educators and learners in building foundational and advanced skills.
