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Hi, Trevor. >> How are you?
It's great seeing you.

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Great to meet you. Likewise. Have a seat.

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Welcome to Australia. Thank you so much.

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It's been fun. We've got lots
to talk about. You've made a lot of

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announcements. I want to talk about AI,
where it's at. I've got some fun things

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to show you, but just I want to start
by thinking about Microsoft at this

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position in time. I was thinking about

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it during the week. We went from command

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prompt MS-DOS to to Windows 3.11. This

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feels like a similar transition,
you know, from being a

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a software operating system company
to being AI first. Is that a a safe

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assessment? Yeah, I mean I always sort

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of think about Microsoft's core identity

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is a platform and a partner company,

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right? I mean I look back and, you know,
um you know, the anecdote I was sharing

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at the keynote even is the first time I
was in Sydney doing some demos was, you

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know, you're trying to talk about Visual
Basic applications inside of Excel that

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others can use to build applications,
right? I mean that is at the core. So,

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even though yes, it is a shift,
a massive shift, very different, it may

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feel like the internet or um

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as you said, the move from DOS to

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Windows and maybe bigger even, quite
frankly, but the core threadline for me

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is how have we enabled
others to build more

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ambitious things than anything that we

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have built, right? That I think
is the defining line of Microsoft. It was

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interesting listening to your keynote
earlier today and there was people

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behind me literally saying, "Oh, that's
cool." And you know, there those kind of

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things under their breath.
And that's a crowd of people who work uh

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in software and they're they're
developing tools. For the average person

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in Australia, let alone around the world,
is AI something that they should

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be worried about or concerned about?

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I would say the most important thing for
us, you know, collectively, both in the

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tech industry but in the broader
society, is to make sure that the

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benefits of AI are really delivered
to everybody, right? Because if we don't,

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uh then of course, it's not going to have
the social permission. Uh what does

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that mean? It means you want to be

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really a good users of water and energy

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to create uh AI that then is helping

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with education outcomes, health outcomes,
public sector is becoming more

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efficient, uh the companies that are

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using AI are becoming more productive,
they're driving economic growth that

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then is making its way to people's,
you know, lives because that's the way

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permission is earned, right? Because
you I I feel like at this point the

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narrative around AI is, you know, such,
which I'm glad, where we're talking

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about both the benefits and the

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unintended consequences versus waiting.

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And that debate is a good debate to have

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uh versus just indexing on any one
of them, right? Because just to say AI is

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all about sort of the fear of AI, that
won't help because it's inevitable that

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this is a secular change. The question
is how do we drive that change such that

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the benefits really are getting through
to everybody. Feels like a secular

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change and also a societal change.

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That's right. Which also brings up
one of the other concerns I think in

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society, which is jobs. People One
of the most common questions I get when

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interviewed about it is, you know,
but it's going to take jobs or cost jobs.

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How do you answer that to people in in
the general public about where jobs are

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going to go with AI? >> Yeah,
I mean I think the one thing is,

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you know, to start with, um I think
in recognizing even right now in the state

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of AI and quite frankly even for the

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foreseeable future is more about what

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I'll call task level automation inside
of jobs, right? You know, yesterday I

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was talking to some uh local
Australian startup doing a

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fantastic job of building a scribe tool

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for doctors. And uh one of the things he

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was describing to me was how much it's

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benefiting the physi- physicians
to by reducing their paperwork burden and

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helping them spend more time with

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patients, right? So, that's the type of

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task that they did that {quote} AI does

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so that they can do the real job,
which is take care of patients. And that's

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happening even in office work, uh right?

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When I think about even my own job,
right? You know, was I meant to mostly

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triage email or can I do

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uh things where I can focus my attention

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on being able to really get the deep

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insights, pass better judgment on things
that I need to do so and so on. So, I

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think that that's one aspect of it.
But at the same time, I'm clear-eyed that

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that's why I think even the skills
announcement we had, which is about how

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do we really make sure that as even new
job opportunities get created and maybe

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in different forms, we have the skills
required to be able to take those jobs.

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>> And you've made a big commitment here
in Australia to that skilling. That's

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right. We have now, you know, committed
to, you know, training uh more than 3

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million people uh in Australia
uh along with obviously

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all the other investments we're making
around uh the data centers. So, big

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investment in skills for Australians and
that's coming from Microsoft. Is that Is

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there a reason why Australia
gets that investment? Is that a a

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an endorsement of our our people
or our industry? For sure. I mean I mean

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Australia is a very important market
for us. Um and whenever I think about it,

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again, I go back to, you know, as a
multinational company, how are we going

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to have a license to operate in Australia?
It's primarily by making sure

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uh that we invest in this country,
not only our own people but also our data

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centers and we're doing things like
skilling and things that we're doing in

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cybersecurity with the Signals
Directorate. These are all important

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investments ultimately to create local

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surplus, right? When that startup, when

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uh you know, Australian Post can use
this in order to be able to, you know,

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have accessibility be core to them and

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their co-pilot adoption or

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um CBA uses it for their customer
applications or what have you. And these

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are things ultimately
that will drive our business.

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>> And did you get a sense You obviously
met with the Prime Minister to make some

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of those announcements. Is Is the
Australian government ready for AI? Uh

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are you helping them along the way
or are they coming to you for help?

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>> Well, first of all, I think in
Australia, I would say the government is

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taken uh really a a progressive uh
you know, approach to sort of making

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sure that they're thinking about what
is the the positives of AI, what are some

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of the things that they need to get
ahead in terms of whether it's safety or

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whether it's around skills um
and what have you. And it's fantastic

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to see their adoption and thoughtfulness

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uh when it comes to AI. Uh and also the
human capital in Australia, right? Which

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is, as I said, is whether it's in these
large-scale multinational companies that

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are operating or the startups that are
getting born here and not only building

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for Australia but for the world, uh the

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high ambition here. This is the first
time I'd say in the world uh and you see

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it in Australia that the rate of

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diffusion is such that there's no sort
of I would say time lag between what may

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be happening on the West Coast of the
United States or the East Coast of China

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and what's happening in Australia. Now,
I want to take a minute. You spent some

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time yesterday with a lot of Aussie
businesses looking at how they're using

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AI. And I think the average Aussie,
let alone average person in the world,

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thinks of AI as ask a question, get
a more thoughtful answer. It's very basic

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from a couple of years ago. But there's
a thing called agents. You you know all

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this, but and you had the Commonwealth
Bank talking about how they're using an

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agent in in a live chat. So, what I did,
I took Copilot Studio and I tried to

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create an agent for my family. So, three
kids, my wife and I, and I thought about

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my busy life, my busy diary, and we have
a shared family calendar. So, I wanted

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to demonstrate it to you if I could.

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>> Cool. Um it's called >> you
build it? Well, I used Copilot

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Studio and I integrated uh the the
Outlook um calendars. And so, we've

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called it Charles, our family butler.

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So, I'll give you a quick example.

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What's my schedule look like on Monday?

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And so, basically, it's now going to go
and check my personal schedule and see

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how busy my day is, but it's also,
cuz I've engaged it to always check the

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family calendar because I want to know
what I'm going to be able to do and how

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I'm going to help the family. So, it's
looking at my calendar. I think people

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need to understand that it's not just
reading a calendar, it's trying to

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understand the schematics of the day.

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And so, now it's giving me a whole
output of my day telling me what I've

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got on, but by default, it's telling me
about the clashes and and problems that

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I might have. So, considerations and even
making suggestions, "Would you like

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me to send Amanda, my wife, a quick
note about the netball pickup clash?" But

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here, it gets even better.
So, what I can also do is say,

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"Move my planning meeting to earlier in

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the afternoon and let my wife know
that I can pick Victoria up for netball."

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So, basically now, it's going to change
my calendar and it's going to send my

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wife an email letting her know that I've
now changed my calendar and I can kick

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pick up Victoria from netball. So,
I know it's a really simple example.

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>> a fantastic demo demo. I wish you
had gotten you into my keynote and demo

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that. Because I think what you just
showed is like the pri- First of all,

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the pride you have, the sense of
empowerment you have that you built this

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application just like in the past you
may have built an Excel spreadsheet or a

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Word document. You just literally
created a piece of software. And there's

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an agent. There's an email to my wife,
which to be honest, probably not

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appropriate. I would normally send a text,
maybe, but just letting you know

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that I've adjusted my meeting so I can
pick Victoria up from school on Monday

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and take her to netball. So, it's it's
a great I feel like is that the next phase

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for AI? So, people to see
it in real world usage of it?

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>> you captured it well, which is what
is the output that you care about. In this

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case, you you didn't sort of say, "Oh,
well, you know, my this coordination

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task I have around my family, I want to

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basically build an agent agentic system
that just does that so that I am not

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sending mails or text messages
or keeping track mentally." And then the

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agent offloads all of that, right? That
ability. And that's what CBA is doing,

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right? For example, is one the cus-
the customer directly is interacting with

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the bot they built, uh but then more

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interestingly, their own agents are

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using agents in order to be able
to do the escalation cases with higher

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quality, >> Yeah.
with less drudgery. And that type

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of improvement is what's fantastic.

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>> Commonwealth also talked about how
it then enabled the human staff to have

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more, I guess, insightful information
by the time they got to the staff for for

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support. >> Exactly.
Exactly. And I think that the

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you know, the the complexity of some
of our products and others inside of an

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organization are such that sometimes
when even you're on the front lines in

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customer service or as a banker even,
you want to be able to have this agentic

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sort of support that's right
at your fingertips, right?

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In fact, that is the way you know, you
know, we used to have this thing called

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information at your fingertips and now
going forward it's about agents at your

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fingertips that are really helping you
be more productive. You also met some

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people from Cricket Australia who are
using Microsoft Copilot to analyze stats

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in real time during cricket matches.

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You're a massive cricket fan. That must
have been impressive. You've got a

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cricket pitch at Microsoft head
[laughter] office in Seattle. We do. We

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do and it's well used. In fact, I get
to overlook it. Uh but yeah, I mean what

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Cricket Australia has done is I mean

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first of all, you know, cricket is a

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very sort of stats rich uh sport and

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they were able to take what's been
a treasure trove of data that they have

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had since 1897 or something like that

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and parlay that into now this Cricket

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Australia app and they have the stats
guru functionality and to be able to

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follow along ball by ball where
the stats it it's just think about it,

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right? You know, it's not you know, that

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ability to generate the most interesting

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stat relevant to a context of one, you

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know, ball. That's just extraordinary.

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If we rewind 5 years, I don't think
anyone in the general public saw AI

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coming. You maybe did um and other other
people in business, but I don't I don't

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[clears throat] know what the next 3
to 4 years looks looks like. Do you have a

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crystal ball of how much more is going
to change for average Australians around

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the use of AI or what's next?
>> Yeah, I think the the speed with which

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some of these new capability jumps are
happening are pretty stunning and that

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to your point was what you know, when I
first read even the scaling laws paper,

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I felt like wow, this if this happens,
this would be really interesting and

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it's turned out that it's
held that line. Uh but the more

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important aspect I think we're reaching
now is the models and in fact, people

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describe this as the model overhang,
right? I think the capabilities are

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there. The question now is to be able
to harness them. Like that's why I'm more

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impressed with your demo than any model

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capability, right? Because at the end of

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the day, did we all use it do things

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that are useful for the outcomes we care

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about individually and as organizations

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throughout society. And that I think
is more going to be the defining thing

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about what's the real frontier of this
technology. How quickly finally, how

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will people know what's real and what's
not in the future? I feel like that's a

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real concern for people especially with
what's happening on the internet. 100%.

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I mean, I think the the digital, you

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know, the provenance and trust are going

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to be the most important aspects, right?

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It's not just about deep fakes, but
everything, right? For example, when you

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have lots and lots of agents,
uh that's why I think even what we are

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doing with agent 365 as a way to give

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organizations that core control plane
to you know, have the observability.

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And this is the issue with any new
technology, right? As the the rapid

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adoption comes on the unintended
consequences and this time around, we

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have to really get ahead, right? Whether

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it is about identity,

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provenance, security and governance

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policies and so that way that we can be

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secure about it. Can Australia be an AI

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powerhouse? I mean, I think that we

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think about AI is more than an

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accelerant to the comparative advantage of

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countries and companies that already

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have that going, right? So in some

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sense, AI is not some abstract new thing

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that sits outside of what is the rest of

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the economy, right? Australia today is a

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powerhouse on many fronts and that those

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fronts will get more amplified because

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of their use of AI and of course,
you know, when it comes to even just

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generating the startups that, you know,
go on to capture large swaths of market

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share in different categories can come
out of Australia as much as any other

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place. I've watched you bounce from
place to place over the last 2 days.

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You've you're a very busy man. You're
you're the you're the boss of one of the

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biggest companies in the world. Do you
get a chance to just look around Sydney

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at any point while you're here?

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>> I that is one of my
dreams is to just come

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here when I'm looking around. But look,
it's it's always a pleasure to be able

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to come and visit and quite frankly,
meet with people. It's energizing to me

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to be able to see the demo that you did
or the demos from the Commonwealth Bank

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or the Cricket Australia and it's always
fun. Thanks, Satya. Thanks so much,

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Trevor. Thank you. >> Cheers.
