Satya Nadella Says Software Is Here to Stay, but AI Will Change How We Work
Microsoft CEO Satya Nadella thinks software is not disappearing. How people use software at work is going to change in a big way. As artificial intelligence tools get better and autonomous agents become more powerful companies might spend time clicking through apps. Instead, they could focus more on finishing work.
In a post on X (formerly Twitter), Nadella explained how employees have traditionally had to adapt to software, switching between applications, rebuilding context and following rigid workflows to complete everyday tasks. AI, he believes, can reverse this approach by organising software around people’s work instead.
“So much of what we do at work is still spent working around software. We switch between apps, rebuild context each time, and translate what we want to do into the steps each system expects. AI is changing that, helping us organize software around the work, rather than us working around the software.”
AI agents will not replace traditional software
Nadella used GitHub as an example to show how AI agents can make existing software platforms stronger by replacing them. Even though AI tools for coding are handling development work, GitHub is still seeing growth. More repositories are being created. More pull requests are being made. More commits are being added. This shows that AI is helping, not taking over.
He believes this trend demonstrates why reliable systems for storing information, coordinating changes and managing business operations will remain important. Similar developments could emerge in sales, customer service, finance and operations.
Microsoft wants Copilot to become an operating system for work
Microsoft’s broader ambition is to position Copilot as a central platform that connects AI models, business applications and everyday tasks. However, Nadella stressed that an intuitive interface alone is not enough.
AI agents also need controlled access to business information and processes stored in customer relationship management (CRM) and enterprise resource planning (ERP) systems.
Microsoft is addressing this through Microsoft IQ, which connects Copilot with business data, organisational knowledge and existing workflows. The company also announced more than 30 new Copilot skills for Dynamics 365 Sales, Service and Customer Insights.
Another addition, Microsoft Copilot Managed Runtime, is designed to let code run securely within company environments under IT oversight.
Towards personalised business software
Microsoft’s CEO described this plan as an ” SaaS factory,” where companies could use Copilot to design custom applications and workflows that fit their particular requirements. By replacing all existing platforms businesses could enhance current systems or develop new parts that link to proven business data.
He also pointed out that AI models should not take over every task. Jobs that are quicker and more accurate with software should still use set processes.
For Microsoft the aim is to make business software more adaptable, without braking systems. Nadella thinks this way of working could change business software offering companies methods to structure their work and create tools around their needs.