Microsoft CEO Satya Nadella: 2026 Will Be Pivotal Year for AI's Real-World Impact

• Microsoft CEO Satya Nadella declares 2026 a "pivotal year" for Artificial Intelligence, moving beyond initial discovery to widespread diffusion.
• Nadella emphasizes distinguishing "spectacle" from "substance" in AI, cautioning against "model overhang" where capability outpaces real-world application.
• He introduces "bicycles for the mind," focusing on how individuals apply AI rather than just the power of the models themselves.
• The CEO foresees a shift from standalone AI models to complex systems orchestrating multiple agents for deeper real-world impact.
• Nadella stresses the need for deliberate choices in AI deployment, ensuring societal permission, real-world evaluative impact, and consensus on resource allocation.

Why It Matters: Nadella sees 2026 as AI's turning point, shifting from hype to practical, human-centric application.