Microsoft CEO Satya Nadella has shared his outlook for AI going into the new year. In a rare public admission, Nadella said that we are currently in a state of ‘model overhang’, where the capabilities of AI models are outpacing our ability to use them for tangible real-world impact. Amidst this ‘model overhang,’ where capability is outpacing our current ability to use it to have real-world impact,” Nadella wrote in his blogpost. 2) The Microsoft CEO says there is a need to deploy AI for real-world impact, which would require the industry to move from just building AI models to building systems around them. He says that for AI to be accepted by society, it must show real-world results.

Source: Mint December 30, 2025 16:38 UTC