Microsoft CEO Nadella warns staff: avoid overusing AI models, match needs for efficiency

Microsoft CEO Satya Nadella said on a New York Times podcast that there's a widespread 'tokenmaxxing' trend inside the company, where employees use the most powerful AI models for all tasks. He noted that while it's exciting, they need to think about what they really want to achieve.

Nadella emphasized that non-frontier problems don't need top models. Microsoft's Copilot auto mode already picks the right AI for each task. He shared that he built a tool using AI that tracks work chats and maintains software projects without needing meetings.

Microsoft is pushing its AI transformation. Nadella appointed a new business lead and hired an AI advisor last year to reshape its business model. At the event, a host gave him a rare T-shirt that says 'Microsoft Advanced AI Research Institute,' originally made for OpenAI employees during Sam Altman's brief ouster in 2023.