Microsoft CEO urges AI developers to get to a point where we are using this
to do something useful, or lose even the social permission...to generate
these tokens

Date:
Thu, 22 Jan 2026 04:00:00 +0000

Description:
Satya Nadella used his Davos platform to warn that AIs future hinges on proving real-world utility.

FULL STORY ======================================================================Microsof t CEO Satya Nadella warned that AI must deliver clear societal benefits or risk losing public support Nadella urged AI developers to focus on improving health, education, and productivity Otherwise, people will reject AI energy use

Microsoft CEO Satya Nadella is concerned that if artificial intelligence doesnt start delivering real, measurable benefits to society, people will be fed up with it and its price, ending its current form of existence. The Davos stage is an odd venue and audience to preach societal good over other goods, but it certainly helped his comments stand out.

AI developers "have to get to a point where we are using this to do something useful that changes the outcomes of people and communities and countries and industries. Otherwise, I don't think this makes much sense," Nadella
explained during a conversation with BlackRock CEO Larry Fink.

"We will quickly lose even the social permission to take something like energy, which is a scarce resource, and use it to generate these tokens, if these tokens are not improving health outcomes, education outcomes, public sector efficiency, private sector competitiveness, across all sectors, small and large."

The Davos crowd, used to a more digital transformation cheerleading role, sounded a little confused. But the discussion also shows how the AI hype
train is both an illusion and real. Nadella should know what he's talking about. Microsoft is one of the biggest drivers of the current AI boom, with tens of billions of dollars invested in OpenAI, its own Copilot suite baked into productivity tools, and a seat at nearly every major AI policy table.

But his message at Davos was that leadership now demands a reckoning not
just about how smart or useful AI tools are in theory, but whether theyre helping people in schools, clinics, small businesses, and city governments.

Thats not an abstract moral argument. Its an infrastructure one. AIs growth has been driven by immense computational muscle, which means its also driven by massive energy use. Training today's biggest models consumes as much electricity as some small countries consume in a year.

And inference, when you run the model on your phone or desktop to answer a question or generate a response, adds to that cost every second it runs. AI doesnt just use servers; it fuels an ever-expanding footprint of data
centers, water-cooled systems, and grid-straining workloads.

Nadellas social permission phrase gets to the heart of what might be next. Until now, the public has broadly accepted that cloud-based tech companies
can use resources in exchange for productivity, entertainment, or
convenience. But that goodwill isnt guaranteed. If AI begins to look like a wasteful luxury, delivering novelty rather than necessity, citizens and governments may start to push back. Value for AI energy

During the session, Larry Fink asked whether all this productivity talk would mean fewer jobs, and Nadella didnt dismiss the concern. But he argued that
AIs potential lies in amplifying what people can do.

But this moment is different from past tech inflection points. The sheer
scale of AI's appetite. Cloud computing scaled gradually. Smartphones had physical limits. But AI can grow as fast as the models and capital behind it allow. Thats why Nadellas call to focus on outcomes comes off as cautious as well as pragmatic.

Nadellas message was simple but sharp: we are nearing the edge of public tolerance for black-box systems powered by opaque amounts of energy, with unclear societal benefits.

And maybe we should all be asking harder questions when the next shiny AI
tool drops: Does this help me? Does it help someone? Or is it just burning energy to generate yet another token?

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Link to news story: https://www.techradar.com/ai-platforms-assistants/microsoft-ceo-urges-ai-devel opers-to-get-to-a-point-where-we-are-using-this-to-do-something-useful-or-lose -even-the-social-permission-to-generate-these-tokens


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