Over the past several years, we have seen customer concerns evolve materially. Early conversations focused primarily on privacy and lawful data handling. Today, those concerns have expanded. Leaders are now asking how they maintain operational continuity during disruption, how they adopt AI responsibly without losing control, and how they protect national, organizational, and customer interests in an increasingly volatile global environment.

These questions are not abstract. They surface in boardrooms, procurement decisions, architecture reviews, and crisis simulations. They reflect a broader shift in how trust is evaluated in digital systems. Today in Brussels we brought together attendees from around the world—policy makers, IT leaders, and enterprises—to approach these questions from the multiplicity of perspectives to move the conversation from headlines to action.

From privacy to resilience and beyond

Privacy remains foundational. But it is no longer the sole lens through which sovereignty is assessed.

Customers are increasingly concerned about business continuity in the face of cyber incidents, geopolitical tension, supply chain disruption, and network instability. They want to understand how critical workloads operate if connectivity is constrained, if dependencies fail, or if policy conditions change with little warning.

At the same time, innovation pressures have intensified. AI is becoming central to public service delivery, national competitiveness, and economic growth. Organizations cannot afford to pause progress while sovereignty questions are debated in isolation. They need approaches that allow them to move forward responsibly, balancing opportunity with control.

What we hear consistently is this: sovereignty concerns will continue to evolve. Any approach that treats them as static is already behind.

For four decades, Microsoft has operated under some of the world’s most demanding data protection, competition, and digital governance frameworks. Working closely with European institutions, regulators, and customers has shaped how we think about sovereignty—not as a regional exception, but as a discipline that must function at scale, under scrutiny, and over time. That experience matters because many of the sovereignty questions now emerging globally were first tested in Europe, long before they became mainstream elsewhere.

A consultative approach to risk management

This is why we believe digital sovereignty must be approached as consultative risk management, not a checkbox or a predefined deployment model.

Every organization faces a unique mix of regulatory obligations, cyber risk, operational exposure, and innovation goals. Even within a single institution, sovereignty requirements differ by workload. Some demand strict isolation and local control. Others require global scale, advanced security capabilities, and rapid innovation.

Our role is to help customers navigate these tradeoffs deliberately. That means working with them to assess risk, align architecture to policy realities, and design environments that reflect both today’s constraints and tomorrow’s unknowns.

This work sits at the intersection of cybersecurity, compliance, resilience, and frontier transformation. It requires ongoing engagement, transparency, and the willingness to adapt as conditions change.

Digital sovereignty posture in practice

A digital sovereignty posture that is flexible recognizes that no single approach can address every requirement. Instead, it focuses on giving organizations options, visibility, and control across a continuum of environments.

Customers operating in public cloud environments expect clear data residency options, strong encryption and access controls, and visible operational discipline. Just as important, they look for transparency into how cloud systems are governed and how exceptional situations are managed, particularly as regulatory scrutiny increases.

Those expectations do not disappear when workloads move closer to the edge. In fact, they intensify. For workloads that require greater isolation, local processing, or operation in constrained environments, hybrid and disconnected solutions become essential. In February, Microsoft announced the expansion of disconnected operations, enabling customers to run critical workloads in air-gapped environments while retaining consistent governance and operational control. This capability extends cloud-based practices into disconnected settings, supporting operational continuity without abandoning security and innovation. 

That commitment shows up in concrete safeguards that customers can independently evaluate and apply. The EU Data Boundary is one example, supporting data storage and processing within the EU and European Free Trade Association (EFTA) regions for cloud services, alongside longstanding investments in encryption, access controls, auditability, and operational transparency. These measures provide practical mechanisms for aligning cloud operations with regulatory and risk requirements, rather than relying on abstract assurances. 

At the same time, we are expanding options across hybrid and private cloud environments to support continuity, resilience, and local control where required. These investments reflect a simple reality: customer needs are not converging toward one model. They are diversifying.

Underpinning all of this are Microsoft’s digital commitments, which frame how we approach privacy, security, transparency, and responsible AI. These commitments are not marketing statements. They guide how systems are built, operated, and governed, and they provide a foundation for long-term accountability.

Practical guidance for leaders navigating sovereignty

As digital sovereignty becomes embedded in policy and procurement decisions, leaders benefit from a practical lens. Based on what we hear from customers and stakeholders, there are a few consistent themes shaping successful approaches:

• Sovereignty requirements will continue to expand beyond privacy to include continuity, resilience, and AI governance.
• Risk management is now inseparable from digital transformation strategy.
• Flexibility and optionality matter more than rigid architectures.
• Transparency and accountability are as important as technical capability.
• Sovereignty posture must consider protections against cyberthreats.

Addressing these realities requires partners who understand the full scope of the challenge and are willing to engage over the long term. It requires platforms and collaboration designed with sovereignty in mind from the start.

So what does this mean for you?

Digital sovereignty is not a destination. It is an ongoing discipline shaped by changing technology, regulation, and global conditions.

At Microsoft, we approach this work with humility and responsibility. We recognize that customer concerns will continue to evolve, and that our own platforms and practices must evolve with them. We remain committed to expanding our sovereign cloud continuum, strengthening our cloud capabilities, and delivering solutions that balance innovation with control.

Most importantly, we remain focused on delivery. Because in moments of uncertainty, what matters most is not what technology promises, but what it allows organizations to do with confidence.

Where does digital sovereignty go from here?

The future of digital sovereignty will be defined by implementation, not rhetoric. Success will depend on collaboration between governments, industry, and civil society, as well as a shared commitment to transparency and continuous improvement.

As we look ahead, our focus remains on helping organizations turn sovereignty principles into durable, scalable outcomes. That means continuing to invest in capabilities that support trust, engaging constructively with policymakers, and listening closely to the evolving needs of our customers.

Digital trust is built over time, through consistent action and openness, and that trust is one of the most important foundations we can help create.

The post Navigating digital sovereignty at the frontier of transformation appeared first on The Microsoft Cloud Blog.

Deepfakes threaten trust in news, elections, brands and everyday interactions, leading us to question what’s real. Determining what’s authentic or manipulated is the subject of Microsoft’s “Media Integrity and Authentication: Status, Directions, and Futures” report, published today. The study evaluates today’s authentication methods to better understand their limitations, explore potential ways to strengthen them and help people make informed decisions about the online content they consume.

The authors conclude that no single solution can prevent digital deception on its own. Methods such as provenance, watermarking and digital fingerprinting can offer useful information like who created the content, what tools were used and whether it has been altered.

People can be deceived by media if they lack information like its origin and history, or if its information is low-quality or misleading. The goal of the report is to provide a roadmap to deliver more high-assurance provenance information the public can rely on, according to Jessica Young, director of science and technology policy in the Office of the Chief Scientific Officer at Microsoft.

Helping people recognize higher-quality content indicators is increasingly important as deepfakes become more disruptive and provenance legislation in various countries, including the U.S., introduce even more ways to help people authenticate content later this year.

Media provenance has been evolving for years, with Microsoft pioneering the technology in 2019 and cofounding the Coalition for Content Provenance and Authenticity (C2PA) in 2021 to standardize media authenticity.

Young, co-chair of the study, explains more about what it all means:

What prompted the study?

“The motivation was two-fold,” Young says. “The first is the recognition of the moment we’re in right now. We know generative AI capabilities are becoming increasingly powerful. It’s becoming more challenging to distinguish between authentic content — like content that was captured by a camera versus sophisticated deepfakes — and as a result, there’s a huge uptick right now in interests and requirements to use those technologies that exist to disclose and verify if content was generated or manipulated by AI.

“The moment has been building, and we have a desire to help ensure that these technologies ultimately drive more benefit than harm, based on how they’re used and understood.”

Young adds that the paper is meant to inform the greater media integrity and authentication ecosystem, including creators, technologists, policymakers and others to understand what is and isn’t possible currently and how we can build on it for the future.

What did the study accomplish, and what did you learn?

The report outlines a path to increase confidence in the authenticity of media. The authors propose a direction they refer to as “high-confidence authentication” to mitigate the weaknesses of various media integrity methods.

Linking C2PA provenance to an imperceptible watermark can bring relatively high confidence about media’s provenance, she says.

She notes the report has a lot of caveats too, such as how provenance from traditional offline devices like cameras, which often lack critical security features, can be less trustworthy because it’s easier to alter.

It isn’t possible to prevent every attack or stop certain platforms from stripping provenance signals, so the challenge, Young says, “is figuring out how to surface the most reliable indicators with strong security built in — and, when necessary, reinforce them with additional methods that allow recovery or support manual digital-forensics work.”

How is this study different from others?

Young says their study investigated two “underexplored” lines of thought for the three methods of verification. They define the first as sociotechnical attacks, where provenance information or the media itself could be manipulated to make authentic content appear synthetic or fake content seem real during the validation process.

“Imagine you see an authentic image of a global sporting event with 80% of the crowd cheering for the home team,” she says. “The away team engages in an online argument claiming, ‘Hey, no, that’s all a fake crowd.’ Someone could make one small, insignificant edit to a person in the corner of the picture and current methods would deem it AI generated — even if the crowd size was real. These methods that are supposed to support authenticity are now reinforcing a fake narrative, instead of the real one.

“So, knowing how different validators work, even through really subtle modifications, you could manipulate the results the public would see to try to deceive them about content,” she says. The second key topic builds on the C2PA’s work to make content credentials more durable, while also addressing reliability. This is where the research is especially novel, Young says. “We looked at how provenance information can be added and maintained across different environments — from high-security systems to less secure, offline devices — and what that means for reliability.”

Why is verifying digital media so difficult?

Authenticating media is complex because there’s not a one-size-fits-all solution, Young says.

“You have different formats that have different limitations or trade-offs for the signals they can contain,” she explains. “Whether it’s images, audio, video — not to mention text, which has a whole different array of challenges — and how strong the solutions can be applied there.”

Young says there are different requirements and opinions about what level of transparency is appropriate as well. In some cases, users might not want any of their personal information included in the digital provenance of a piece of media, while in others, creators or artists might want attribution and to opt-in for having their information included.

“So, you have different requirements or even considerations about what goes into that provenance information,” she says. “And then, similar to the field of security, no solution is foolproof. So, all the methods are complementary, but each has inherent limitations.”

Where do we go from here?

Young says that as AI-made or edited content becomes more commonplace, the use of secure provenance of authentic content is becoming increasingly important. Publishers, public figures, governments and businesses have good reason to certify the authenticity of the content they share. If a news outlet shoots photos of an event, for example, tying secure provenance information to those images can help show their audience the content is reliable.

“Government bodies also have an interest in the public knowing that their formal documents or media are reliable information about public interest matters,” Young says.

She adds that as AI modifications to media become “increasingly common” for legitimate purposes, secure provenance can provide important context to help prevent an average reader or viewer from simply dismissing that content as fake or deceptive.

“For the industry and for regulators, we note how important continued user research in this area is to drive towards more consistent and helpful display of this information to the public — to make sure it’s actually meaningful and useful in practice,” Young says.

“We have a limited set of technologies that can assist us, and we don’t want them to backfire from being misunderstood or improperly used.”

Learn more on the Microsoft Research Blog.

The post A new study explores how AI shapes what you can trust online appeared first on The Microsoft Cloud Blog.

1. Preparing for the integration of AI and agents.
2. Strengthening training so that everyone has the necessary skills. 
3. Fostering a culture that prioritizes cybersecurity. 

Preparing for the integration of AI and intelligent agents

Preparing for AI and agent integration calls for careful strategy, thoughtful business planning, and organization-wide adoption under solid governance, security, and management. Microsoft’s AI adoption model offers a step-by-step guide for businesses embarking on this journey and the guide offers actionable insights and solutions to manage AI risks.

Strengthening training so that everyone has the necessary skills

Technology alone isn’t enough. People are your strongest defense—and the foundation of trust. That’s why skilling emerged as a central theme throughout these past months and will continue beyond. Frontier Firms—those structured around on-demand intelligence and powered by “hybrid” teams of humans plus agents—lead by fostering a culture of continuous learning. Our blog “Building human-centric security skills for AI” offers insights and guidance you can apply in your organization.  

• Lean into your unique human strengths: Your team’s judgment, creativity, and experience are irreplaceable. Take time to invest in upskilling and reskilling them, so they can confidently guide and manage AI tools responsibly and securely. Explore Microsoft Learn for Organizations for resources to support your learning journey.
• Stay curious and agile through continuous learning: Building security resilience is an ongoing process. Regularly refresh your AI and security training, offer time and resources for employees to explore new skills, and create a supportive, engaging environment that motivates continuous growth. Find in AI Skills Navigator, our agentic learning space, AI and security training tailored to different roles.  

Investing in skilling doesn’t just reduce risk—it accelerates innovation by giving teams the confidence to explore new AI capabilities securely. 

Skilling is an ongoing practice that needs to constantly evolve alongside the business and technology landscape. Staying ahead requires an enterprise-wide strategy that aligns ever-changing business priorities with always-on skill-building. 

—Jeana Jorgensen, Corporate Vice President, Microsoft Learning

Fostering a culture that prioritizes security

As AI impacts everyone’s role, make security awareness and responsible AI practices shared priorities. Encourage your team to weave security thinking into their daily routines—creating a safer environment for all. As Vasu Jakkal, Corporate Vice President of Microsoft Security highlighted in her blog “Cybersecurity Awareness Month: Security starts with you,” it is critical that security become part of your organization’s culture and norms. 

Check out our new e-book, Skilling for Secure AI: How Frontier Firms Lead the Way for practical steps for leaders to upskill their workforce in identity management, data governance, and responsible AI practices.

From awareness to action

In the agentic AI era, people continue to be our most valuable resource. It’s essential to empower them with AI and equip them with the skills they need to use AI responsibly and securely. Cybersecurity awareness should go beyond designated months or campaigns; true awareness means taking meaningful action.   

Here are three actions you can take today to maximize your AI investments: 

1. Share the Be Cybersmart Kit with your employees. It includes tips for protecting yourself from fraud and deepfakes, guidance on safe AI usage, and key security best practices.
2. Invest in people: Focus on upskilling initiatives that support your AI transformation, cloud modernization, and security-first strategies.
3. Champion a security-first culture: Ensure cybersecurity is integral to every business discussion and woven into your overall strategy. 

Microsoft guide for securing the AI-powered enterprise

Download the guide

The post From awareness to action: Building a security-first culture for the agentic AI era appeared first on The Microsoft Cloud Blog.

Explore Microsoft Cybersecurity Awareness resources

As part of the Microsoft Secure Future Initiative (SFI), we have committed to embed security into every layer of our technology, culture, and governance—placing security above all else. Since its launch in November 2023, SFI has mobilized the equivalent of more than 34,000 engineers to proactively reduce risk and strengthen security across Microsoft and the products and services we offer our customers. A great example of this is mitigating advanced multifactor authentication attacks, where phishing-resistant multifactor authentication now protects 100% of production system accounts and 92% of employee productivity accounts. In addition, we continue to reduce the risk of compromise during new employee setup by enforcing video-based verification, now at 99%.¹

Enabling your security-first approach

This year, we have also developed new resources and tools to support security professionals in keeping their organizations secure, particularly as we enter this next era of AI. Building upon our learnings with SFI, we have created SFI patterns and practices, which is a new library of actionable guidance designed to help organizations implement security at scale.

In addition to best practices for security professionals, we continue to add articles to our Be Cybersmart Kit, which is a great starting point for security professionals that need to educate their organizations on how to be safe. The Be Cybersmart Kit contains articles on AI safety, device security, domain impersonation, fraud, secure sign-in, and phishing. The kit is just one of the many resources available on the Microsoft Cybersecurity Awareness site. 

Be Cybersmart

Help educate everyone in your organization with cybersecurity awareness resources and training curated by the security experts at Microsoft.

Get the Be Cybersmart Kit.

Those seeking more in-depth resources can access expert-level learning paths, certifications, and technical documentation to continue their cybersecurity education. And for students pursuing the field of cybersecurity, the Microsoft Cybersecurity Scholarship Program and educational opportunities like Microsoft Elevate are here to help. The goal of all these programs is to help foster a culture that puts security and continuous learning first for students and professionals alike.

Security-first in action: Franciscan Alliance

A great example of a security-first culture, especially around education and awareness training, is Franciscan Alliance, a non-profit Catholic health care organization based in Indiana. Franciscan Alliance employs a proactive and interactive strategy for cybersecurity awareness and employee education.

“We believe cybersecurity education should be continuous, engaging, and empowering—because informed employees are our strongest defense.”

—Jay Bhat, Chief Information Security Officer (CISO), Franciscan Alliance

The organization conducts monthly phishing simulations and quarterly assessments to expose staff to realistic scenarios consistently. Employees who do not pass the quarterly assessments are provided with additional training rather than being penalized, which supports a culture centered on learning and development. Training programs incorporate gamification elements to enhance accessibility and retention. Additionally, employees receive a monthly newsletter covering relevant security topics that support safe practices both professionally and personally.

During Cybersecurity Awareness Month, weekly editions are distributed, along with timely updates on emerging threats, including breaches and attacks. Franciscan Alliance also organizes threat briefings in partnership with external partners and utilizes resources such as Microsoft’s Cybersecurity Awareness materials to inform its training initiatives.

Developing security competencies in the age of AI

As organizations rapidly embrace AI, making security the first priority is not just a best practice—it’s a necessity. AI systems are powerful tools that can transform business productivity, but without robust governance and security measures, they can also introduce significant risks. To address these challenges and empower security-first leadership, we invite C-level executives to register for Microsoft’s upcoming webinar “Trust in AI: Accelerate Business Growth with Confidence,” which will feature critical discussions on how to build trust in AI for your organization.

Get started here:

• Explore the Cybersecurity Awareness Website.
• Download the Be Cybersmart Kit and share it with your teams.
• Explore SFI patterns and practices for actionable security guidance
• Learn ways to keep your personal devices and data safer online with Microsoft 365.
• Sign up for the AI Skills Navigator program that provides AI learning path trainings.
• College students can apply for the Microsoft Cybersecurity Scholarship Program.

Additionally, Microsoft’s Chief Product Officer of Responsible AI Sarah Bird will moderate the panel, “Cyber and AI, Strategic Risk and Competitive Advantage,” at the NASDAQ Summit on October 21, 2025, at the New York Stock Exchange, where industry experts will provide guidance on governance and security for AI. In this session, experts will discuss real-world use cases, regulatory developments, and the strategic implications of integrating AI into enterprise environments. Events such as these are incredible opportunities for executives to deepen their understanding and lead with confidence in the age of AI.

Get the Be Cybersmart Kit

Make the most out of Cybersecurity Awareness Month

We hope that these resources provide you with the learning, training, and confidence to set you and your organizations up for success—both this month and beyond. Now is the time to build a culture with a security-first mindset by making security part of your daily habits at work, home, and everywhere else. A security-first mindset means staying informed, proactively protecting digital assets, and encouraging others to do the same. Security is a team sport. By promoting vigilance and shared responsibility, we can create a safer world for all.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

¹April 2025 SFI progress report.

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It’s a great question, considering that a year ago building an AI agent meant calling in an experienced IT team. Today, teams in finance, human resources, and communications are building their own using low-code tools and off-the-shelf AI like Microsoft 365 Copilot. What once took months and weeks now takes hours and minutes, and often fits right into the tools they already use. IDC predicts over a billion AI agents will be in use by 2028 as AI shifts from answering questions to taking action at scale.¹

Does that mean you should begin with agents? Not necessarily. With so many tools and promises in the market, deciding where to start can be overwhelming. That’s why we created The Business Guide to AI Solutions—to help you cut through the noise and focus on what matters: solving real business problems with the right kind of AI.

The Business Guide to AI Solutions

Choose and apply assistants, agents, and custom tools as part of a secure, scalable AI strategy

Get the guide

Match the solution to your business goals

AI isn’t one-size-fits-all. The best results come from aligning the right AI solution with the specific problem you’re trying to solve. Whether your goal is to boost productivity, streamline operations, personalize customer experiences, or build something entirely new, there’s a path forward. Here’s how to think about your options:

Need to boost team productivity and reduce time spent on repetitive tasks? Start fast with assistants

Our recent 2025 Work Trend Index Annual Report contains a lot of insight into how AI is reshaping work. It also put a spotlight on something many employees struggle with that can stall a company’s progress: the infinite workday. The pace of work keeps accelerating—and for many, that means the day never really ends. People are starting earlier, working later, and staying buried in emails, Microsoft Teams chats, and meeting requests well into evenings and weekends.

Clearly, the pace of business is relentless. Our approach can’t be. A great place to start is AI assistants. And if your priority is to help your team be more productive, off-the-shelf solutions can deliver quick wins. Microsoft 365 Copilot is built into the apps your teams already use. Designed for fast deployment and immediate value across different roles, Copilot can help people work faster by summarizing content, generating drafts, and automating routine work in all functions—including sales, marketing, finance, and human resources.

For example, British Columbia Investment Management Corporation (BCI) increased productivity by 10% to 20% for 84% of Copilot users and increased their job satisfaction by 68%. The business saved more than 2,300 person-hours with automation, reduced the time spent on writing internal audit reports by 30% and saved one month of processing time to analyze 8,000 survey comments. And XP Inc. uses Microsoft 365 Copilot to automate tasks, boosting productivity by saving over 9,000 hours—a 30% increase in audit team efficiency.

Struggling with complex, manual processes that slow down operations? Automate with agents

When you’re ready to streamline more complex, multistep processes, agents can help. These autonomous tools go beyond assistants by taking action on your behalf—coordinating tasks across systems, automating workflows, and supporting business operations at scale.

Agents are quickly moving from experimental to essential. We recently introduced advancements in memory, reasoning, and access control that make agents more effective across business environments. You can see this in action in the latest Microsoft 365 Copilot innovations, including multi-agent orchestration, agent tuning, and deeper integration with everyday apps.

With Microsoft Azure AI Foundry, developers can access a full stack agent factory with capabilities to automate business processes across the enterprise. For example, Fujitsu boosted sales proposal productivity by 67%, enabling their teams to focus more time on customer engagement.

We’re also investing in open standards to help agents operate securely across systems so they can scale with your business, not just your tech stack. Read the broader vision for what’s next to learn how AI agents are shaping a more open, connected, and productive future.

Whether built with low-code or pro-code tools, agents can have a big impact across teams. Carvana built an AI agent named Sebastian to guide customers through the car buying and selling journey. To continuously improve Sebastian’s performance, they developed Conversation Analysis Review Engine (CARE), an AI-powered platform that analyzes 100% of customer interactions. Together, Sebastian and CARE have helped Carvana reduce inbound calls per sale by over 45% in two years, reflecting a smoother, more efficient customer experience.

Want to tailor AI to your business without starting from scratch? Extend prebuilt solutions

Once you’ve started using Microsoft 365 Copilot, built-in extensibility gives you a way to go further. With Microsoft Copilot Studio, you can connect AI to your own data, fine-tune prompts, and integrate functionality into your existing systems. This allows you to adapt AI to your workflows—without the time and complexity of building something entirely new.

A case in point is Pets at Home, the United Kingdom’s leading pet care business, which used Microsoft Copilot Studio to extend Copilot’s capabilities for its profit protection team. By building a tailored agent that compiles cases for human review, the company streamlined internal workflows and expects to drive seven-figure annual savings, all without starting from scratch.

Looking to create a competitive edge with something truly unique? Differentiate with custom AI

When your needs are highly specific, customization enables you to design unique solutions that reflect your organization’s DNA. With Azure AI Foundry you can build your own agents, train models with your data, and create experiences specifically made for your business.

For example ABB Group, a global leader in electrification and automation, built a custom AI solution called Genix Copilot using Microsoft Azure OpenAI service to tackle complex industrial challenges like asset performance, energy optimization, and emissions monitoring. The result? Up to 35% savings in operations and maintenance, 20% improvement in energy efficiency, and an 80% reduction in service calls, all through a differentiated, AI-powered experience tailored to their customers’ needs.

You can also build AI solutions tailored to your industry using Microsoft’s industry-specific models and tools in Azure AI Foundry. Whether you’re in healthcare, retail, manufacturing, financial services, or education, our Microsoft Industry Clouds provide prebuilt data models, templates, and AI services to help you move faster and deliver value sooner—without compromising on security or compliance.

Build on a foundation of trust

As AI becomes more powerful, so do the risks. Business leaders are asking the right questions: How do we protect sensitive data? How do we ensure compliance? How do we build AI systems that are fair, transparent, and accountable?

At Microsoft, responsible AI isn’t an afterthought—it’s built into every layer of our platform. Our approach is grounded in clear principles: fairness, reliability and safety, privacy and security, inclusiveness, transparency, and accountability.

We also provide the tools and governance frameworks to help organizations:

• Protect sensitive data in every interaction.
• Detect and respond to emerging threats in real time.
• Enforce access control and compliance policies at every level.
• Build user trust through transparency and oversight.

When you invest in AI, you’re not just investing in innovation—you’re investing in long-term resilience. That means choosing a partner who puts trust at the center of every solution.

2025 Responsible AI Transparency Report

Explore progress on our commitments to building responsible AI

Get the report

Make your next move with confidence

Whether you’re just getting started or ready to scale, Microsoft offers AI business solutions that meet you where you are—and grow with you.

• Download The Business Guide to AI Solutions to explore your options and design an AI strategy that fits your organization.
• Visit the Copilot Studio agents hub to see how businesses are using agents to transform operations.

The pace of AI innovation isn’t slowing anytime soon. But with the right strategy, the right tools, and the right partner, you can move forward with clarity and confidence.

¹ IDC Info Snapshot, sponsored by Microsoft, 1.3 Billion AI Agents by 2028, Enterprise Grade and in Production, US53361825, May 2025.

The post Choosing the right AI path for your business: A practical guide for business leaders appeared first on The Microsoft Cloud Blog.

Research has always been an integral part of Microsoft’s identity, driving our role as a global technology leader. Since 1991, Microsoft Research has dedicated itself to a fundamental research approach—advancing knowledge, deepening our understanding of the world, and exploring how technology can empower people and organizations. Through its extensive body of publications and a commitment to openly sharing its work, Microsoft Research continues to collaborate with the global research community to drive breakthroughs in AI and beyond. Together, we are pushing the boundaries of what’s possible to extend human capability, create value for our customers, and deliver broad societal benefit. 

Transforming research with AI at Microsoft Research 

With Microsoft leading the charge in AI, Microsoft Research teams are at the forefront, using our expertise, fostering thought leadership, and driving innovation in AI and research. AI is at the center of many of Microsoft Research’s pioneering projects, from helping researchers analyze massive datasets within seconds, inventing new AI solutions that would benefit humanity, and collaborating with the global research community through the Accelerating Foundation Models Research (AFMR) program.  

Microsoft Research is in a unique position where it can not only adopt and use AI but also invent AI. We have made significant investments in AI, building new AI methods, models, and technologies. To infuse AI more deeply into the research process, an experimental initiative is underway, helping teams move faster, think bigger, and share more effectively. This initiative breaks down into three key strategies: using, infusing, and diffusing AI across the organization. 

• Using AI (Tools and Operations) focuses on optimizing access and advancement of AI.
• Infusing AI (Research and Development) is about maximizing the potential of AI to revolutionize research processes.
• Diffusing AI (Connectivity and Information Flow) ensures rapid sharing of AI insights, tools, and learnings with others, both inside and outside of Microsoft Research. 

The goal is not just to adopt AI, but to augment and reinvent the way research is done—empowering everyone in the organization to achieve more. 

The integration of AI into research processes at Microsoft Research provides valuable insights for researchers and businesses. Using AI can accelerate innovation cycles, improve operational efficiency, and lead to the development of cutting-edge tools and products. These advancements highlight how AI can reinvent traditional workflows, streamline operations, and drive growth and profitability, making it a strategic focus for organizations to implement. 

GraphRAG: Advancing research with knowledge graphs 

GraphRAG is a modular graph-based retrieval augmented generation (RAG) system that uses large language models to create knowledge graphs from raw text. This technique enhances large language model performance on private datasets by providing structured data and summaries, making it easier for researchers to extract meaningful insights from complex data. 

The changes that are happening in AI right now, they really are surprising. The capabilities are expanding so quickly. I think of it as kind of an accelerator. Everything that we do in research, we can do faster, we can ask more questions, and this has all been kind of a warp speed thing.

—Nathan Evans, Principal Software Architect at Microsoft Research 

Data Formulator: Transforming data into insights 

Data Formulator is an innovative tool designed to help researchers quickly explore and analyze data. By using AI, Data Formulator lets users to create rich visualizations without the need for extensive programming knowledge. This tool combines AI and interactive approaches to communicate visualization intent, making data analysis more accessible and efficient 

AI really speeds up our experimentation process. In the past, we really needed to do a lot of hacking over weeks to experiment on designs. But now we can have a high-level thought, we can do the prototype in a short amount of time, and we can start thinking on top of that.

—Chenglong Wang, Senior Researcher at Microsoft Research 

Accelerating Foundation Models Research: Democratizing AI research  

The Accelerating Foundation Models Research (AFMR) program provides academic researchers with access to state-of-the-art foundation models hosted on Microsoft Azure through Microsoft Azure AI services. This initiative fosters a global AI research network and offers robust, trustworthy models that help further research in disciplines ranging from scientific discovery and education to healthcare, multicultural empowerment, legal work, and design. 

The AFMR program works with the broader academic research community to explore different aspects of foundation models to accomplish three goals:  

Goal 1: Align AI with shared human goals, values, and preferences 

This involves enhancing the safety, robustness, sustainability, responsibility, and transparency of AI models. One notable project aligned to this goal is “ERBench: An Entity-Relationship based Automatically Verifiable Hallucination Benchmark for Large Language Models.” For this project, researchers created ERBench which helps in evaluating and improving the accuracy and reliability of AI-generated content. This ensures that AI models align with human values and reduces the risk of misinformation.  

Goal 2: Improve AI-human interactions 

The second goal focuses on improving AI-human interactions by increasing trust, human ingenuity, creativity, and productivity while reducing the risk of developing AI that is harmful for individuals and society. The project “As Generative Models Improve, People Adapt their Prompts” explores how prompting changes as generative AI models improve. Results showed that participants using more advanced models produced better, longer, and more descriptive prompts. This research provides valuable insights into the evolving dynamics between humans and AI, helping to create more intuitive and effective AI systems. 

Goal 3: Accelerate scientific discovery 

The third goal is to accelerate scientific discovery through proactive knowledge discovery, hypothesis generation, and multimodal data generation. One project that exemplifies this goal explored “Artificial Intelligence–Based Copilots to Generate Causal Evidence.” In this initiative, large language models were explored as causal “copilots” to help identify flaws in medical study designs. These models could assist researchers by providing expert guidance in study design, improving the accuracy of conclusions drawn from the studies. 

AI is really important in research because AI has the potential, the huge potential to really accelerate the research, which is needed to address some of the greatest challenges of today and tomorrow.

—Evelyne Viegas, Technical Advisor at Microsoft Research

The next frontier: Looking ahead to the future of AI in research 

As scientific research evolves in an era powered by AI and cloud technologies, the opportunities for innovation, collaboration, and global impact are unprecedented. From accelerating scientific discovery to improving human-agent alignment, foundation models are reshaping how research is conducted, shared, and scaled. Looking ahead, researchers and institutions must not only embrace these tools but also build robust frameworks for adoption, and evaluation. 

There is still much more for us to explore on how we can advance research at Microsoft and we’re just getting started. 

The post Microsoft as customer zero: Empowering research teams with AI appeared first on The Microsoft Cloud Blog.

Forty-two years ago, Microsoft released the very first version of Microsoft Word. It was a major milestone in the company’s journey to enhance people’s productivity through innovation. It also marked the young and growing company’s first big step in Europe with the first Microsoft product localized in multiple European languages, starting with German and French.

Since then, our economic reliance on Europe has always run deep. We recognize that our business is critically dependent on sustaining the trust of customers, countries, and governments across Europe. We respect European values, comply with European laws, and actively defend Europe’s cybersecurity. Our support for Europe has always been–and always will be–steadfast.

In a time of geopolitical volatility, we are committed to providing digital stability. That is why today Microsoft is announcing five digital commitments to Europe. These start with an expansion of our cloud and AI infrastructure in Europe, aimed at enabling every country to fully use these technologies to strengthen their economic competitiveness. And they include a promise to uphold Europe’s digital resilience regardless of geopolitical and trade volatility.

As a multinational company, we believe in trans-Atlantic ties that promote mutual economic growth and prosperity. ​We were pleased the Trump administration and the European Union recently agreed to suspend further tariff escalation while they seek to negotiate a reciprocal trade agreement. We hope that successful talks can resolve tariff issues and reduce non-tariff barriers, consistent with the recommendations in the recent Draghi report.

We will always be dedicated to creating jobs, promoting economic opportunities, and strengthening cybersecurity on both sides of the Atlantic. The five commitments below, like the very first European version of Microsoft Word, take our support for Europe another step forward.

1. We will help build a broad AI and cloud ecosystem across Europe

We recognize that European nations want and need a world class and broad AI and cloud ecosystem. Today, we are announcing plans to increase our European datacenter capacity by 40% over the next two years. We are expanding datacenter operations in 16 European countries. When combined with our recent construction, the plans we’re announcing today will more than double our European datacenter capacity between 2023 and 2027. It will result in cloud operations in more than 200 datacenters across the continent.

This expansion will play an important role in boosting Europe’s economic growth and competitiveness. We believe that broad AI diffusion will be one of the most important drivers of innovation and productivity growth over the next decade. Like electricity and other general-purpose technologies in the past, AI and cloud datacenters represent the next stage of industrialization. They are creating real-world capabilities to fuel business and manufacturing innovation, run national health systems, enable secure government services, and support digital tools in education—all while keeping data and operations close to home, subject to European laws and regulations.

Public cloud datacenters

Our public cloud datacenters are a foundation for the diversified cloud ecosystem we are committed to supporting across Europe. This includes the Microsoft Cloud for Sovereignty, a package of technologies and configurations to help governments and other customers run on Azure in our public cloud datacenters with greater control over data location, encryption, and administrative access.

Sovereign cloud datacenters

A second aspect of our diversified approach involves sovereign cloud datacenters. In France, Microsoft has partnered with Capgemini and Orange, who formed a joint venture named Bleu. Designed as a “cloud de confiance” (trusted cloud) platform, Bleu offers a broad range of Microsoft Azure cloud services and Microsoft 365 productivity tools operated under French control. In Germany, a similar sovereign cloud initiative is underway through a partnership between Microsoft, SAP, and Arvato Systems (a Bertelsmann IT subsidiary). This effort, through SAP’s subsidiary, Delos Cloud GmbH, is creating a sovereign cloud platform for the German public sector, hosted in German datacenters and operated by German personnel.

Support for European cloud providers

A third aspect of our work involves our collaboration with European cloud providers to offer Microsoft applications and services on their local cloud infrastructure. This partnership provides these European providers with the opportunity to run Microsoft applications on more favorable terms than we make available to Amazon and Google. Additionally, we are developing new technology and licensing solutions tailored for these European providers and the markets they serve.

Emerging options

Given recent geopolitical volatility, we recognize that European governments likely will consider additional options. Some of these may involve public financing to support European home-grown offerings. We recognize the importance of a diversified technology ecosystem, and we are committed to collaborating with European participants across the tech ecosystem.

Respect for European laws

Microsoft is investing tens of billions of dollars annually in expanding its datacenters across Europe. These investments aren’t on wheels. They are permanent structures and subject to local laws, regulations, and governments. Like every citizen and company, we don’t always agree with every policy of every government. But even when we’ve lost cases in European courts, Microsoft has long respected and complied with European laws.

We understand that European laws apply to our business practices in Europe, just as local laws apply to local practices in the United States and similar laws apply elsewhere in the world. This includes European competition law and the Digital Markets Act, among others. We’re committed not only to building digital infrastructure for Europe, but to respecting the role that laws across Europe play in regulating our products and services.

2. We will uphold Europe’s digital resilience even when there is geopolitical volatility

By building a European cloud for Europe, Microsoft is committed to helping Europe navigate the uncertain geopolitical and trade environment and better manage risk by strengthening the continent’s digital resilience. We will always strive to be a voice of reason that promotes mutual opportunities and stable ties across the Atlantic. We in fact believe that even amidst current trade and tariff disputes, there is a strong consensus in Washington supporting the sustained flow of digital services from the United States to Europe.

We also are listening closely to the views of European governments and leaders. We recognize that European countries, like nations everywhere, need to have rock-solid confidence in the digital infrastructure on which they rely. To ensure this confidence, we will take the following three steps:

A European cloud for Europe

Microsoft is headquartered in the United States, but we provide cloud services to Europe through corporate entities headquartered in Europe. To further cement the nexus between Microsoft and Europe, going forward our European datacenter operations and their boards will be overseen by a European board of directors that consists exclusively of European nationals and operates under European law.

A Digital Resilience Commitment

In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court. By including a new European Digital Resilience Commitment in all of our contracts with European national governments and the European Commission, we will make this commitment legally binding on Microsoft Corporation and all its subsidiaries.

Microsoft has a demonstrated history of pursuing litigation when that has been needed to protect the rights of our customers and other stakeholders. This includes four lawsuits we filed against the U.S. Executive Branch during President Obama’s tenure, including to protect the privacy of our customers’ data in the United States and Europe. It also included, during President Trump’s first term, a successful decision before the U.S. Supreme Court to uphold the rights of employees who are immigrants. When necessary, we’re prepared to go to court.

We are confident of our legal rights to ensure continuous operation of our datacenters in Europe. And we are prepared to back this confidence with our contractual commitments to European governments.

Business continuity partnerships

Finally, we will designate and rely upon European partners with contingency arrangements for operational continuity in the unlikely event Microsoft were ever required by a court to suspend services. We are already enabling our partners in France and Germany to do this for the Bleu and Delos datacenters, and we will pursue arrangements for our public cloud datacenters in Europe. We will store back-up copies of our code in a secure repository in Switzerland, and we will provide our European partners with the legal rights needed to access and use this code if needed for this purpose.

3. We will continue to protect the privacy of European data

Microsoft has long been at the forefront in designing and implementing technology solutions to protect customer data. We enable customers to control where their data is stored and processed, how it is encrypted and secured, and when Microsoft can access it. We offer customers robust capabilities across the entire cloud stack from infrastructure to platform to software as a service, from Azure to Microsoft 365 to Dynamics 365. We back our technical solutions with strong contractual commitments and, as noted above, a demonstrated history of going to court on behalf of our customers.

The EU data boundary project

Reflecting our continuing commitment to innovation, we recently finished implementing our EU Data Boundary project. This offers European customers the ability to have their data stored and processed in Europe. Since January 2024, our European commercial and public sector customers have been able to store and process their data and personal identifiers for Microsoft core cloud services—including Microsoft 365, Dynamics 365, Power Platform, and Azure services—within the EU and EFTA regions. Three months ago, Microsoft completed the project by extending the EU Data Boundary to include professional services data from technical support interactions. And, critically, we make these solutions available in all our European cloud regions and throughout our tech stack, from IaaS, to PaaS, to SaaS, including M365 Copilot.

Additional security and encryption options

In addition to the EU Data Boundary, we provide European customers with multiple options for securing and encrypting their data. Our Confidential Compute offerings in Azure eliminate the ability of third parties—including Microsoft—to access customer data by ensuring data is processed within a trusted environment the customer alone controls. We enable customers to create a “lockbox” around their data across Azure, Dynamics 365, and Microsoft 365 by giving them the ability to review and approve before Microsoft accesses their data for customer and service support operations. We also enable customers to secure their data with encryption keys that they, not Microsoft, control with Azure Key Vault and Microsoft Purview Customer Key. Our Microsoft Cloud for Sovereignty offers customers a range of other tools to secure data, protect against unauthorized access, and satisfy legal requirements.

A strong legal track record

In addition to technical measures, we will continue our fight to protect the rights of European customers. Microsoft has a strong track record of going to court in the rare instances that we need to protect European data from unauthorized access. We have consistently fought legal demands that conflict with European law and have taken our challenges all the way to the Supreme Court of the United States. In 2018, as a direct result of litigation Microsoft brought on behalf of our European customers, the U.S. Congress enacted legislation that guarantees our right to object to U.S. law enforcement demands to access European data that conflict with EU law.

We codified our promise to protect our European customers’ data with our Defending Your Data commitment, in which we agreed to challenge any government demand for EU public sector or enterprise customer data where we have a legal basis for doing so. We have included that commitment in our customer contracts and backed it up with a promise to compensate customers if we disclose their data in violation of EU law.

New opportunities for innovation

Today we commit to further strengthen and expand solutions that allow European customers to control and protect their data. We are embarking on new steps to listen to and consult with European customers to build on what already is the most complete, widest range of privacy, security, and sovereignty solutions that any cloud services provider now offers to customers in Europe. We look forward to sharing in the coming months the conclusions that emerge and the new steps we decide to take.

For more details about Microsoft’s data protection and compliance programs, see the Microsoft Trust Center.

4. We will always help protect and defend Europe’s cybersecurity

As war erupted in 2022, Microsoft immediately helped evacuate Ukraine’s critical data and technology services to our datacenters across Europe. This move ensured Ukraine’s continued digital operation outside the range of cruise missile and air attacks. In many ways, this illustrates the role that a broad network of datacenters plays in supporting not only digital but broader resilience, both for a country and a continent.

Uninterrupted, world-class cybersecurity protection

In addition to safeguarding the country’s data, we immediately helped Ukraine’s officials and citizens defend their nation from Russian cyberattacks. Since the start of the war, Microsoft has provided more than $500 million of free technology and financial assistance to Ukraine and has sustained our substantial support to this day. Without interruption, we have provided cybersecurity support to NATO, Ukraine, and other European governments, including by sharing cybersecurity threat intelligence, protecting elections, and disrupting attacks against European governments, companies, and citizens.

New measures to protect against new threats

More than three years since the start of the war in Ukraine, European governments and countries confront ongoing cyberattacks from Russia, China, Iran, and North Korea. As these threats grow in number and sophistication, strong cybersecurity protection and coordination are more important than ever, as is the ability to respond rapidly to regional demands. That is why today we are announcing the following cybersecurity steps, which will be followed by additional announcements in the coming weeks.

A new Deputy CISO for Europe

Today, our Chief Information Security Officer (CISO) Igor Tsyganskiy announced that we are appointing a new Deputy CISO for Europe as part of the Microsoft Cybersecurity Governance Council. This senior executive will be dedicated to Microsoft’s security responsibilities in Europe. Last year we created this council, consisting of our Global CISO and Deputy Chief Information Security Officers (Deputy CISOs) representing each of our technology services. This Council oversees the company’s cyber risks, defenses, and compliance across regions and domains.

The appointment of a Deputy CISO for Europe reflects the importance and global influence of EU cybersecurity regulations and the company’s commitment to meeting and exceeding those expectations to prioritize cybersecurity across the region. This new position will report directly to Microsoft’s CISO. The Deputy CISO for Europe will be accountable for compliance with current and emerging cybersecurity regulations in Europe, including the Digital Operational Resilience Act (DORA), the NIS 2 Directive, and the Cyber Resilience Act (CRA). These laws will prove transformative not only in EU markets, but worldwide, and Microsoft is actively engaged in preparing for what lies ahead.

New security steps under the Cyber Resilience Act

We believe the CRA will reshape the regulatory landscape as a new gold standard for cybersecurity, much as the GDPR did for privacy. We will build on the work of our Secure Future Initiative and dedicate additional resources to comply with the CRA. As its deadlines approach, we look forward to continuing our years of engagement with the European Commission, industry partners, and customers on CRA implementation efforts. We are committed to our role as a member of the European Commission’s Expert Group on Cybersecurity of Products with Digital Elements.

To that end, Microsoft will continue to engage with stakeholders across a range of CRA topics. These will include incident and vulnerability reporting, security by design and default, cybersecurity best practices and improving open-source security and attestation. We will share our innovations that support implementing the CRA essential security requirements to help European economic operators also prepare for CRA compliance.

Security is the foundation of trust. To sustain that trust, we will engage an independent auditor to verify and validate our commitments to Europe. We know that people will only use technology that they trust, which is why we are dedicating resources to accelerate our compliance with the CRA and committing to independent validation.

5. We will help strengthen Europe’s economic competitiveness, including for open source

Our AI Access Principles

We recognize the importance of ensuring open access to our AI and cloud platform and infrastructure across Europe, including for open-source development. That is why we announced last year a set of AI Access Principles and we will introduce new enhancements to these commitments in the coming months.

Open access across Europe

These principles have ensured that our Azure AI platform and infrastructure is open to a variety of business models—both open-source and proprietary. We now host more than 1,800 AI models. Most of these models are open-source models, such as those from European-based AI developers Mistral and Hugging Face. And they are all available via public APIs to facilitate interoperability. This means that customers can choose which models to use and where to build their AI-powered solutions: on Azure, in another public cloud, or in their own datacenter. Finally, we enable customers to export and transfer their data. Last year we eliminated fees for the transfer of data when customers choose to switch to another cloud provider.

A foundation for European competitiveness

Over the past year, we have seen European startups, established businesses, and other organizations take advantage of the open access to models and tools that we provide to innovate, grow, and compete in the new AI economy. This includes technology startups such as Factorial in Spain to build AI-driven automation for HR professionals, iGenius in Italy to develop AI solutions for regulated industries, and Visma in Norway to provide AI solutions for companies in accounting, payroll, invoicing, and beyond. And it includes the Institute Curie in France to research new therapies for cancer, UBS in Switzerland to create the future of banking, and Heineken in The Netherlands to boost employee productivity.

Building European infrastructure for Europe’s future

We recognize that Microsoft must constantly remain focused on earning and sustaining our “license to operate” in each country across Europe. With datacenters and digital technology, this starts with each local community and country and includes officials with continental-wide responsibilities.

Since we first brought the first version of Microsoft Word to Europe 42 years ago, digital technology has changed the ways people work many times over. Yet as we look forward, we believe the second quarter of the 21^st century may bring even bigger changes ahead. Artificial intelligence offers what may become the most powerful tool for people in the history of humanity. And like all tools, there will be some who will seek to turn it into a weapon.

More than ever, it will be critical for us to help Europe harness the power of this new technology to strengthen its competitiveness. We will need to partner with smaller and larger companies alike. We will need to support governments, non-profit organizations, and open-source developers across the continent. And we will need to listen closely to European leaders, respect European values, and adhere to European laws. We are committed to doing all these things well.

As we celebrated Microsoft’s 50^th birthday earlier this month, we recognized that our longstanding presence in Europe has been a lynchpin of our success. Europe has treated us well. Our support for Europe has always been—and always will be—steadfast.

The post Microsoft announces new European digital commitments appeared first on The Microsoft Cloud Blog.

In a recent playbook, Accelerating sustainability with AI: Innovations for a better future, we outlined our five plays to advance sustainability, providing insight into our work at Microsoft and how business leaders around the world are creating a new path forward.

The reason to choose AI for this work? It has three unique abilities that can help organizations overcome key bottlenecks. AI can: (1) measure, predict, and optimize complex systems, (2) accelerate the development of sustainability solutions, and (3), empower the sustainability workforce. These capabilities make AI a critical enabler of progress.

Accelerate sustainability with AI

Explore actions and innovations

Get the playbook

How can business leaders harness AI to accelerate resilience, efficiency, and sustainability in their organization?

I recently met with Lindsay Myers, Vice President, Commercial Cross Solutions at Microsoft, who leads our Commercial Sustainability business, to talk more about this guidance and how business leaders can harness AI to accelerate resilience, efficiency, and sustainability in their organizations.

Toby: Hi Lindsay, before we dive into the playbook, can you share your thoughts on how organizations are adopting AI to address these interconnected goals of resilience, efficiency, and sustainability?

Lindsay: It’s important to highlight how interconnected these goals are in many organizations today. We often see initiatives started by sustainability teams result in significant cost savings for organizations. This might be efficiency gains for existing operations, or entirely new approaches like digital twins that enable rapid iteration before initial prototypes are built. When companies choose an approach like digital twins, it can reduce the materials needed for physical models—saving time and costs—while improving resilience through agility.

Explore customer and partner examples of AI innovation

Toby: Can you give me some examples of customers and partners who are doing this work today?

Lindsay: AI is making a real difference in helping organizations prepare for climate risks, innovate for maximum efficiency, and solve complex challenges. For example, in Germany, where urban flooding is a major concern, cities are searching for innovative ways to mitigate the impacts of heavy rainfall and its impact on communities and infrastructure. Esri, a global leader in geographic information system (GIS) software is helping cities unlock the power of digital twins driven by geospatial data and AI. This solution helped the City of Stuttgart cut its reality mapping time from five months to 24 hours, enabling local government and public safety staff to understand potential impacts and make decisions faster.

Stadtwerke München (SWM), the municipal utilities company serving Munich, has made it its mission to drive every aspect of the city’s energy, heating, and mobility transition forward. To accomplish this, it needed maximum-efficiency processes, such as predictive infrastructure maintenance and optimized operations planning. It has turned to Microsoft Azure and Azure IoT to efficiently provide power to its public transport fleet of 100% electrified vehicles.

Unlock new possibilities with data and AI

Toby: Those are inspiring examples; they give a real sense of AI’s potential. The playbook outlines 5 plays, or ways that organizations can unlock this potential. Could you describe some of these?

Lindsay: Let’s talk first about the first two plays and how they work together.

Investing in AI solutions to measure, predict, and optimize complex systems can drive both innovation and efficiency, helping companies focus on the most strategic priorities for business resilience.

For example, Mitiga Solutions, a global leader in climate risk intelligence and a Microsoft Climate Innovation Fund investment leverages AI, high-performance computing, and advanced climate models to predict the impact of physical climate hazards on any asset, anywhere in the world, from now until the end of the century. This helps infrastructure, commercial real estate, insurers, and companies across industries comply with climate disclosure regulations while proactively strengthening their resilience.

 With AI-powered solutions, businesses can swiftly tackle complex challenges across their own supply chains and for their customers. This not only positions companies as leaders in sustainability but can also unlock new market opportunities and enhance their competitive advantage.

It’s crucial to build a strong digital and data infrastructure to maximize AI’s potential—your AI is only as good as the data it relies on. That’s why having high-quality, representative data and the right processing infrastructure is essential. It enables teams to make informed decisions and provides accurate input for AI applications.

For many of our customers and partners, these two plays are closely linked. The foundational work involves bringing all the necessary data together in one place, like in Microsoft Fabric. What’s amazing about Fabric is it lets you reason over both internal and external data, which is incredibly helpful for things like regulatory reporting.

Once your data is set up properly, your team can use solutions such as Microsoft Copilot to ask questions of their data, generate reports, and learn from industry best practices. Copilot streamlines these tasks, reducing manual work and enabling practitioners to focus their time on new strategic initiatives.

Minimize resource use in AI design and operations

Toby: When I talk to organizations looking to adopt AI, customers and partners often want to learn more about what Microsoft is doing to reduce the environmental impact of AI. Could we talk a bit about that?

Lindsay: Absolutely. Let’s talk about play 3 and how that relates to our work at Microsoft.

AI has its own energy and water demands, so it’s crucial to minimize resource use and move toward powering AI systems with carbon-free energy. In addition, since AI infrastructure is often concentrated in specific regions, it is essential to support the local communities where datacenters are located. At Microsoft, we’re innovating across three critical areas to continue to advance the sustainability of cloud and AI services:

1. Optimizing datacenter energy, water, and waste efficiency while protecting ecosystems.
2. Advancing low-carbon materials and creating global markets to promote industry-wide sustainability.
3. Enhancing the energy efficiency of AI and cloud services.

Many of our customers and partners want to know not only what we’re doing, but also what they can do to manage resource use. Our Well-Architected Framework sustainability guidance provides a great starting point, as well as small language models that perform specific tasks using fewer resources than larger models.

Build workforce capacity to use AI for sustainability

Toby: The pace of innovation in this domain is incredible. Is there anything more you’d like to add in terms of how your team helps leaders move their ideas from concept to implementation?

Lindsay: The way forward on this journey is through people working together, and this is an area where we can help customers and partners make progress. Let’s talk about the final play first:

For companies to be able to put AI’s three game-changing capabilities to work, they must have skills to use AI effectively. Microsoft has training programs focused on building AI fluency, supporting nonprofits, businesses, and governments in advancing workforce AI technical skills and promoting safe and responsible AI development.

Microsoft’s AI learning hub can empower customers on their AI transformation journey, and customers can also use Copilot to connect with their data in Microsoft Cloud for Sustainability and sustainability data solutions in Microsoft Fabric. With these tools, employees can quickly gain insights, understand gaps, and identify what’s needed to move initiatives forward.

Toby: Thank you, Lindsay!

Transform business using generative AI

For business leaders wanting to put these plays in action and guide their organizations through effective AI adoption, we’ve published the 2025 AI Decision Brief: Insights from Microsoft and AI leaders on navigating the generative AI platform shift. This report is packed with perspectives from top Microsoft leaders and insights from AI innovators, along with stories of companies across industries that have transformed their businesses using generative AI.

2025 AI Decision Brief

Advance AI and drive consistent AI value in your org

Get the full report

The post Harnessing AI for resilience, efficiency, and sustainability appeared first on The Microsoft Cloud Blog.

Beyond the tools that empower businesses to shape their future with AI in a rapidly evolving market, our leaders at Microsoft are shaping our own organization with this technology. In this series, FYAI, we’ll highlight leaders from around Microsoft that are driving forces in our AI strategy for their unique perspective on our AI transformation; for your AI information, if you will.

Insights from Sarah Bird, Chief Product Officer (CPO) of Responsible AI

In this edition, we hear from Sarah Bird, Microsoft’s Chief Product Officer (CPO) of Responsible AI, ahead of her appearance at South by Southwest (SXSW) where she’ll be discussing the evolving safety practices for generative AI.  

In this Q&A session, Sarah shares her insights on various aspects of responsible AI, including her journey and dedication to responsible AI, her role as Chief Product Officer, the importance of integrating responsible AI early in the development process, and her insights on future AI breakthroughs and their safety implications. 

Let’s explore Sarah Bird’s experiences and perspectives on the evolving landscape of AI and discover how Microsoft is building trustworthy AI systems. 

FYAI: Responsible AI with Sarah Bird

 Who influenced you to pursue a career in responsible AI?

“For me, it’s less about who influenced me to pursue this career and more about who I’m helping every day through my work. AI is one of the most empowering technologies we have, but we can’t unlock its full potential without solving for responsible AI. That’s what makes this work so important—it’s about ensuring AI is safe and beneficial for everyone. And to do that, we have to work across boundaries. It reminds me of my grad school days—responsible AI is the ultimate group project, bringing together technology, society, and law to tackle these complex challenges in a meaningful way.” 

What does the role of chief product officer, responsible AI, actually mean? Tell us what your day-to-day looks like. 

“No two days are the same, and that’s what keeps me energized. At the core, my team is focused on three key things: spotting new risks, figuring out how to tackle them—especially when they’re things we’ve never seen before—and making sure our solutions are scalable so others can apply them easily. That framework guides us, but the reality is, AI is evolving fast. So a big part of our work is staying nimble—triaging issues in real-time, applying what we learn in practice, and adapting quickly to test and deploy new systems. It’s a mix of strategy and problem-solving, which is what makes it exciting.”

Where are you noticing gaps in companies’ implementation of AI safety practices?

“It’s been really inspiring to see how much more mature customers are getting with their responsible AI roadmaps and deployment. There’s real progress happening. That said, people are still learning, and the level of maturity varies across industries—some are further along than others. If there’s one thing I could shout from the rooftops, it’s that responsible AI can’t be an afterthought. It needs to be built into the entire development process from the start, not just bolted on at the end. It’s about putting all the pieces together to create a complete, responsible AI lifecycle.”

When do you think the next AI breakthrough is going to happen and what does that mean for safeguards?

“As an engineer, I’m focused on problem-solving rather than predicting when the next big breakthrough will happen. But I will say—it’s an exciting journey, especially with the pace of innovation. And while we still need another major leap before we can talk about the reality of what’s next, what’s really exciting about this space is that the breakthrough isn’t just the technology itself—it’s how we apply it. The real magic happens at the intersection of tech and people, and figuring out how to bridge that responsibly is what makes this work so fascinating.”

Why do you feel safety and innovation go hand in hand? 

“A goal of ours as a company is to help people do more with AI. We are constantly pushing the boundaries of what’s possible and doing so in a safe, trusted way. As I’ve said, safety is not just a ‘nice to have’ bolted on at the end of a project, but a critical piece of developing high-quality AI systems. I look at safety issues as a measure of quality – is your AI performing as well as it should be? We can’t innovate and drive meaningful progress if we don’t solve for this.” 

2025 AI Decision Brief

Gain insights from thought leaders at Microsoft to advance AI and drive consistent AI value in your org

Get the full report

Learn more about Microsoft’s responsible AI work 

At Microsoft, we’re committed to the responsible advancement and use of AI. Our approach is guided by principles that ensure AI development maximizes benefits and minimizes potential harms. We incorporate responsible AI practices from the beginning by training our employees to evaluate risks and collaborating with experts to review and test technologies. 

We believe that advancing safe, secure, and trustworthy AI requires a mix of industry commitments, policies, and global governance. Responsible AI is an ongoing journey that involves continuous learning and collaboration.

Sarah Bird is at the forefront of ensuring that AI technologies are developed and deployed responsibly, and her team is dedicated to building tools that test AI systems rigorously to ensure they work as intended and are safe, inclusive, and beneficial for everyone. As she highlights, by integrating responsible AI practices from the start, we can unlock the full potential of AI while maintaining the highest standards of safety and innovation. 

Want to learn more?  

• Are you attending SXSW? Check out Sarah’s panel on Wednesday, March 12: Building Trustworthy AI: Evolving Safety Practices for GenAI. 
• Visit our Understanding AI at Microsoft page to catch up on the latest content from our Building AI Responsibly blog series.
• Read Grow Your Business with AI You Can Trust to discover how safe and secure AI business practices can enhance performance and effectively drive impact.

The post FYAI: The role of responsible AI with Microsoft CPO Sarah Bird appeared first on The Microsoft Cloud Blog.

Generative AI has been on a phenomenal growth trajectory over the past few years. We’re seeing businesses across industries using AI to increase productivity, streamline processes, and accelerate innovation. As generative AI applications continue to become more powerful, the question isn’t whether organizations will take advantage of AI, but how they can use it most effectively.

At Microsoft, our mission is to empower every person and every organization on the planet to achieve more. In this age of generative AI, we’re committed to sharing what we’ve learned to help further this mission. That’s why we wrote the AI Decision Brief. 

This report is packed with perspectives from top Microsoft leaders and insights from AI innovators, along with stories of companies across industries that have transformed their businesses using generative AI. It’s also full of pragmatic tips to help your company with its own AI efforts. 

Here’s a more detailed look at what you’ll find in the report.

The state of generative AI today 

The world has embraced generative AI with unprecedented speed. While it took seven years for the internet to reach 100 million users, ChatGPT reached those numbers in just two months.¹ And although generative AI is relatively new to the market, adoption is rapidly expanding. In fact, current and planned usage among enterprises jumped to 75% in 2024 from 55% in 2023, according to an IDC study.²  

Put another way, AI is rapidly evolving into what economists call a general-purpose technology. But getting to the point where everyone on the planet has AI access and takes advantage of that access will require some effort, including: 

• Committing to responsible, trustworthy AI.
  For all people, organizations, and nations to embrace AI, it must be responsible, ethical, fair, and safe. As Microsoft Vice Chair and President Brad Smith says in this report, “Broad social acceptance for AI will depend on ensuring that AI creates new opportunities for workers, respects enduring values of individuals, and addresses the impact of AI on local resources such as land, energy, and water.” 
• Overcoming adoption challenges.
  Organizations face several challenges in adopting generative AI, such as skill shortages, security concerns, and regulation and compliance issues. Training employees to use AI and building data privacy, security, and compliance into your AI adoption plan are essential.
• Understanding the winning formula.
  There’s a striking difference between customers in the AI exploration stage and those who have fully embraced it. The highest-performing organizations gain almost four times the value from their AI investments than those just getting started. Plus, those high performers are implementing generative AI projects in a fraction of the time.²

Where generative AI is headed

AI capabilities are doubling at a rate four times that of historical progress.² This exponential growth tells us that the effects of AI-powered automation, scientific discovery, and innovation will also accelerate. We expect generative AI to revolutionize operations, enable new and disruptive business models, and reshape the competitive landscape in many ways, including:

• The future of work.
  As the use of generative AI in companies continues to grow, employees are starting to collaborate with AI rather than just treating it as a tool. This means learning to work with AI iteratively and conversationally. “Effective collaboration involves setting expectations, reviewing work, and providing feedback—similar to managing an employee,” explains Jared Spataro, Microsoft Chief Marketing Officer, AI at Work. 
• The organizations leading innovation.
  Startups, software development companies, research organizations, and co-innovation labs where startups and software giants collaborate on solutions will all continue to shape AI innovation.  
• Sustainable AI.
  Generative AI is helping build a more sustainable future thanks to tools that integrate renewable energy into grids, reduce food waste, and support socially and environmentally beneficial actions.

How to advance generative AI in your organization 

As we help companies move from talking about AI to translating it into lasting results, we’ve gained a unique perspective on the generative AI strategies that drive business impact. You’ll find many of them in this report, including:

• Best practices for using generative AI at scale.
  Get tips for developing a scalable AI strategy that best suits your organization, implementing your AI adoption plan, and managing your AI efforts over time. 
• Ways to accelerate your AI readiness.
  Get checklists for creating your organization’s AI business strategy, technology and data strategy, implementation strategy, cultural and mindset shift, and governance plan. 
• Customer success stories.
  See how businesses across industries—including healthcare, energy, transportation, and finance—are demonstrating what’s possible with AI now, and in the future. Plus, explore which Microsoft and AI tools they’re using to succeed.

Maximize generative AI with insights from Microsoft leaders

We couldn’t be more excited about the promise of generative AI. Whether you’ve already begun using AI at your organization or are just getting started, we’re here to help you ease the journey and maximize your results.

Get The 2025 AI Decision Brief now for Microsoft AI leadership perspectives on: 

• Empowering the future: AI access for us all—Brad Smith, Vice Chair and President.
• How AI is revolutionizing IT at Microsoft—Nathalie D’Hers, CVP Microsoft Digital (IT).
• Learnings on the business value of AI from IDC—Alysa Taylor, Chief Marketing Officer, Commercial Cloud and AI.
• The future of work is AI-powered—Jared Spataro, Chief Marketing Officer, AI at Work.
• Microsoft’s commitment to supporting customers on their AI transformation journey—Judson Althoff, Executive Vice President and Chief Commercial Officer.
• How software development companies are paving the way for AI transformation—Jason Graefe, Corporate Vice President, ISV and Digital Natives.
• How to stay ahead of emerging challenges and cyberthreats—Vasu Jakkal, Corporate Vice President, Microsoft Security Business.

AI Decision Brief

Empower your organization and learn how AI is reshaping businesses through insights shared by Microsoft leaders

Get the full report

¹ Benj Edwards, “ChatGPT sets record for fastest-growing user base in history, report says: Intense demand for AI chatbot breaks records and inspires new $20/mo subscription plan,” Ars Technica, February 1, 2023.

² IDC InfoBrief, sponsored by Microsoft, 2024 Business Opportunity of AI, IDC# US52699124, November 2024.

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