‘The perception is terrible’: Satya Nadella acknowledges AI fears, but says technology will lift wages

As political resistance to artificial intelligence intensifies in the United States, Microsoft chief executive Satya Nadella has acknowledged the growing unease surrounding the technology, while maintaining that AI will ultimately generate economic benefits and improve living standards.

Speaking during a live recording of Hard Fork, The New York Times’ technology podcast, in San Francisco on Wednesday, the 58-year-old executive conceded that public opinion towards AI has deteriorated.

“You can’t deny that the perception is terrible,” Nadella said, recognising that fears over job losses and the wider societal impact of AI have become increasingly pronounced.

Despite those concerns, he argued that the technology would raise wages over time and that its benefits should be shared broadly. “Everyone is a stakeholder” in AI, he said.

More from Tech

According to The New York Times, Nadella also indicated he had no objection to the idea of ordinary citizens sharing in the wealth generated by AI companies. The concept has gained traction in recent days, with Senator Bernie Sanders describing AI as a “public resource” that Americans should have some ownership over. President Donald Trump has likewise floated the idea on multiple occasions over the past week, suggesting that citizens could benefit financially from the success of AI firms.

The remarks come at a time when opposition to AI is expanding beyond the technology sector. Parent organisations, religious groups, environmental campaigners and activists across the political spectrum have increasingly voiced concerns about the proliferation of AI systems and the construction of energy-intensive data centres. Critics have warned that the technology could eliminate jobs, create security risks and have negative effects on mental health.

Nadella has been at the centre of the AI race since Microsoft made an early investment in OpenAI in 2019. That decision proved pivotal after ChatGPT triggered a global boom in generative AI following its launch in late 2022. Microsoft later poured an additional $12 billion into the company, giving the software giant a significant advantage over rivals in the emerging market.

However, as competition has intensified, Microsoft has adjusted its relationship with OpenAI to reduce dependence between the two firms. While the company remains OpenAI’s largest financial backer and a major shareholder, Nadella stressed that the partnership continues to be valuable, particularly because the start-up still supplies Microsoft with important intellectual property.

The Microsoft chief has also faced the challenge of balancing the company’s computing resources between customers, OpenAI and Microsoft’s own expanding portfolio of AI products.

Beyond AI, Nadella addressed developments within Xbox, Microsoft’s gaming business. Referring to a message sent by the division’s leadership outlining a 100-day reset strategy, he said the unit faced pressure to ensure its entertainment offerings remained commercially viable.

He also pointed to rising hardware costs and persistent supply constraints affecting the broader consumer electronics industry.

“The scarcity of the semiconductor supply and memory, in particular, are having a massive impact on consumer electronics,” Nadella said.

Nevertheless, he expressed confidence in the long-term prospects of the gaming business.

“We have to turn this into a sustainable business that delivers what is fundamentally one of the best sources of entertainment,” he added.

His comments underscored the balancing act confronting one of the world’s most valuable companies: pushing ahead aggressively in the AI race while addressing growing scepticism from the public and ensuring its traditional businesses remain profitable.