artificial intelligence represents the next major technological shift, creating a new economic landscape, according to Microsoft president Brad Smith. Speaking at Web Summit in VANCOUVER, Canada, on Wednesday, Smith likened the transformative potential of AI to that of electricity. He stated that Microsoft is investing $80 billion this year to develop the foundational infrastructure necessary for the widespread adoption of AI technology by businesses and individuals.

Smith highlighted the critical question facing developers: “Are we trying to build machines that are better than people, or are we building machines that will help people be better?”

While the sweeping changes initiated by electrification 140 years ago are well-remembered, Smith noted that technological advancements alone are insufficient. A complete ecosystem of supporting infrastructure and technologies, a “tech stack,” is essential for true transformation.

The AI Tech Stack

Smith outlined the three-layered tech stack supporting AI development:

1. Infrastructure
   1. AI datacenters
   2. Chips
   3. Land, electricity, connectivity
2. Platform
   1. AI software platforms
   2. Data
   3. Foundation models
3. Applications
   1. AI-infused software
   2. AI-powered devices

The “appliance layer,” frequently enough overlooked, is crucial for delivering the benefits of AI to the average person, Smith said. Just as appliances seemed like magic a century ago, “140 years later we have our own chance to create things that feel like magic,” he added.

“We’re building the world’s next Industrial Revolution,” Smith added. “And we have an opportunity to make it better than the industrial revolutions that we’ve experienced before.”

“We’re building the world’s next Industrial Revolution,” Smith stated. “And we have an opportunity to make it better than the industrial revolutions that we’ve experienced before.”

Addressing Job Displacement Concerns

The rapid advancement of AI has sparked concerns about job displacement. companies like Amazon, Meta, and Salesforce are already implementing AI agents in sales and service roles, as as Forbes contributor Gene Marks wrote.Klarna, UPS, Duolingo, Intuit, and cisco are doing the same.

Numerous jobs are at risk, and some have already been lost.

Though, Smith emphasized that Microsoft’s focus is on developing technology that empowers individuals to pursue better employment opportunities, rather than creating machines that surpass human capabilities.

He stressed the importance of “skilling” people for the evolving economy and the jobs it will generate.

Smith cautioned that hundreds of millions worldwide remain excluded from the electrification revolution that began 140 years ago.

He warned that a similar outcome is highly likely in the AI revolution without significant investment in education, training, and potential economic reforms.