Microsoft Outlines Three-Part Strategy to Lead in AI

Microsoft is urging the United States to invest in AI infrastructure, education, and exports to strengthen its economic position and foster international partnerships.

"AI is the electricity of our age, and the next four years can build a foundation for America’s economic success for the next quarter century," says Brad Smith, Vice Chair and President, Microsoft.

The United States finds itself at a critical juncture in its technological evolution, as AI emerges as a new General-Purpose Technology (GPT) that promises to revolutionize productivity across all sectors of the economy. According to Smith, as the country faces intense global competition, particularly from China, the strategic integration of AI will be essential for maintaining its economic competitiveness. Smith’s statement echoes a historical pattern, where past industrial revolutions, fueled by innovations such as electricity and software, established the United States as a leader. AI represents the next frontier, argues Smith, and the US government, private sector, and academic institutions must collaborate to ensure its leadership in this field.

Microsoft outlined a comprehensive three-part strategy that the United States must adopt to fully harness AI's potential. First, it calls for significant investment in AI technology and infrastructure. Microsoft plans to allocate about US$80 billion in the 2025 fiscal year toward AI-enabled datacenters, with over half of that sum to be invested within the United States. This massive infrastructure development will support the training of AI models and the deployment of AI applications globally.

The second pillar of the strategy is AI skilling. As AI reshapes the job market, there is an increasing need for a workforce capable of developing and managing AI technologies. Microsoft has committed to training 2.5 million individuals in AI skills in 2025, targeting students, workers, and community members across the country. Microsoft is also collaborating with organizations like the National AI Consortium for Community Colleges to provide industry-relevant curricula, ensuring that the workforce is equipped for the AI-driven economy.

The third priority focuses on promoting AI exports. As AI technologies mature, global competition, particularly with China, intensifies. Smith highlights the need for US policies to foster AI exports, ensuring that USmade AI innovations are shared with international allies while protecting sensitive technologies. This export strategy is crucial for not only securing US economic interests but also for reinforcing global relationships through technological collaboration.

The integration of AI is expected to lead to productivity gains across sectors. AI is also expected to play a role in addressing economic inequality by offering opportunities for individuals with lower levels of formal education to access higher-paying jobs, says Microsoft. 

“The key to the future is to bring together the best of what we can offer across American society, from across our private sector, educational and non-profit institutions, and government,” says Smith.