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>> Welcome, everyone.
I'm Glenda McNeal, President of

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Enterprise Strategic
Partnerships at American Express.

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I'm thrilled to continue the In

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Partnership with Series with Satya

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Nadella, Chairman and CEO of Microsoft.

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Satya, thanks so much
for talking with me today.

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>> Thank you so much, Glenda, for the
opportunity. It's a real pleasure to be

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with you. >> Excellent.
I want to start out with a

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couple of rapid-fire questions
that Bing Chat suggested I ask you.

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Can you share a recent book
that has influenced your thinking?

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>> I recently reread,
Glenda, a book called

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Bootstrapping written by Thierry Bardini.
I think if I get the author's

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name right.
It was written in the early 2000s.

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I reread it recently because it's a book

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about computing and in particular about

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the work of Douglas Engelbart, who
is sort of very well known for the person

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who first came up with the mouse, the
keyboard, the graphical user interface.

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So, a big sort of contributor to personal
computing. And he's the one who

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really conceptualized this human-computer
sort of symbiosis, if you

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will, to create,

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you know, augment human capability. And I
felt like, you know, in given the age

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of co-pilots, it is good to go back

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to that first computer age and say,
"Well, essentially now this new

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generation of AI is really helping us
take that vision to the next step." And

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so, that's the book that at least I
would say has influenced a lot of my you

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know, thinking in in the recent times.

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>> Would you recommend that for a layman?

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>> Absolutely. It's actually a beautiful
book. It's not nothing to do with sort

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of any technology. It's a human story
of a person. In fact, it's sort of one of

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the most inspiring parts is why did he
choose his life's work, right? So, he

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went on this quest of saying,
"I want to make a choice." He was I think

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an electrical engineer by training. He
had many different options, and he chose

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this particular field of human-computer
interaction because he felt that

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humanity needed new tools to deal with

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what was sort of a lot more, you know,

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critical issues with urgency. And so, he
chose this. And so, I think it's as much

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of a human story as a technical story.

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>> That's great. Well, it sounds
interesting. Um a lot of Microsoft

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products out there.
Do you have a favorite one?

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>> That's always the hard one.

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I mean, I must say this Copilot. Like
even, you know, uh we now have something

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called Microsoft Copilot. It's kind of

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like my AI agent. Um and I use it for,

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as I always say, you know, for my travel
and for my meeting prep. It's the one

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tool for anything. Copilot has become
my go-to for lots and lots of tasks every

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day. >> Well, it sounds
as though it's getting a

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lot of attention. I know we talk about
it here at American Express. So, we

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appreciate all the work and all
the products. As you know, we are a big

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Microsoft customer. So, thank you very
much for all the hard work that you and

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your team do together. So, let's talk
a little bit about leadership. You started

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at Microsoft in 1992 as a software

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engineer, and you became CEO in 2014.

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When you took on the role,
you focused on company culture.

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You said the team needed to rediscover

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the soul of Microsoft, your reason for

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being. What did you see at that time as

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the big opportunities, and what did
you do to make people believe they could

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achieve the level of success
that you have today?

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>> I think a lot about what keeps
organizations like American Express or

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Microsoft or anyone relevant
into the future because in some

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sense all of us, what happened in the
past is in the past, and the question

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really is how do you
renew yourself and stay

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relevant for our customers. And that I

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think comes from two sources, at least
in my mind. One is a sense of purpose

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and mission.

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Uh which helps with your company's

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ability and the people's ability to pick

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on things that add value. Uh right? So,
for example, in our case, we talk about

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our mission to empower every person
and every organization on the planet to

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achieve more. And I feel that that has a

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lot to do with how we even we chose this
design concept of Copilot. I don't think

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this Copilot as a product would have
gotten created if we didn't have the

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mission we have, if you will. So,
therefore, one is going back constantly

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to your mission, reinterpreting that

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mission for today and tomorrow, not
for the past. Obviously, technologies come

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and go. So, therefore, to be able
to keep your mission constant, but

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technology and its expression in

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products and services fresh, I think
is one side of it. The other side of it is

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culture, to your point, which is in
order for us to do that, you have to

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have a learning culture. Right?
It's very hard to manage change

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and change in technology, change
in business models, change in everything,

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pretty much. Uh if you don't have a

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learning culture. And so, we emphasized

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uh internally this cultural meme, which
has been very, very helpful to us, of

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growth mindset. In other words, you know,
going from being the know-it-alls

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to learn-it-alls. Uh and quite frankly,
right now, again, back in this age of

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AI, I must say what happened in the cloud
over a 15-year period, it seems to

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be happening now in a 5-year period.
So, therefore, we now need to be the best

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learn-it-alls we can ever be.
Uh and so, yeah. So, these would be the

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two things, Glenda, I would say, sense

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of purpose and mission, and reimagining

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that uh for what is possible today with

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new technology and new products and
services, and then using our culture to

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give us that ability to sort
of pursue the mission.

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>> One of the things I loved in going

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through your book, Hit Refresh, um at

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the beginning you talk about empathy.

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And uh how empathy played a key role in

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how you brought the team on board. And I

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think everything that you said

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um kind of shrouded in this notion of

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being empathetic and understanding the
the reason for your being has been quite

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powerful. Um and you guys
have achieved incredible

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success financially. You're on the
cutting edge of tech advancements. And

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so clearly the path you
set and the way you're

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leading today uh has made a huge
difference. And so that's exciting to to

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know and to understand.
So thank you for that.

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>> No, absolutely. And I think sometimes
people think of empathy as some sort of

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a soft skill that's nice to have,
but it's not a critical skill. I The way I

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think about it is it's sort of a a very
important design skill that every

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business leader needs to have.
Because at the end of the day we all have

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inherently as humans empathy
for different things. Collectively we need

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to harness it to be able to have
a better insight, for example, into the

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unmet unarticulated needs of customers,
for example. That's at the end of the

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day American Express or Microsoft will
be successful if we have that insight.

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Uh some people may call it design
insight and skills. And I would submit

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that it comes from a deep sense of empathy
uh for customer issues and customer

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opportunities. And so therefore I think
it's a not just a soft skill, but it's

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probably the hardest skill to learn
and exercise in order to be able to be

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successful in business.
>> I completely agree. I think it's a

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critical leadership skill. So we agree

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on that. Um you changed Microsoft's

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mission, as you just said, um to empower

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every person and every organization
on the planet to achieve more. One of the

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ways you do that is through partnerships.
And I can easily say that

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you and I have have shared belief that
partnerships power success and American

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Express and Microsoft have a very
long history of leveraging each other's

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products and partnering to innovate.

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When you think about Microsoft's
mission to achieve more, what attributes

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differentiate your most successful
partners? What do you look for?

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>> So, first of all, it's I'm
so glad you brought up this

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entire thing about partnerships
because I think about its core

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to our, I'll call it, sense of purpose
and mission of empowering every person

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and every organization. Right there,
you know, is the definition of

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partnerships because in some sense, we

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will only be successful if our

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technology output can be parlayed by our

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partners into more higher value for

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their customers, right? That when I we
work with American Express, it's that's

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why I like that that touchless expense
or touch-free expense management system

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you build with some input from us,
but you're you're building your own

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platforms, your own technology, right?

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Same thing in fact, we're already it's
fascinating to see how Bing Chat is

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being used, I think, in your customer
service in order to be able to do better

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customer service responses and what
have you. So, to me, that ability to take

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some output of ours to help our

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customers realize value in terms
of them creating more value on top of our

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platform, right? So, one of one of the
things I always think about a platform

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company is a platform company only if
the value above the platform is more

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than in the platform. I mean, that's
as simple as that. Otherwise, the platform

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is unstable. Uh and so, that's the

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approach uh we take when it comes to

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partnerships. And so, being able to have

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not just the technology,
but the business model and a culture that

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reinforce it, I think, is sort of one
of the things that we seek to sort of

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understand. Somebody said this to me,
you can't say one thing and do something

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else, right? It has to be all congruous

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uh in how value gets created.
And so, that's the approach we've taken.

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>> Well, that's fantastic. And I think you

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know, I lead the strategic partnership

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relationships at American Express and I

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think the amount of alignment around

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values, the ability to create trust

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between organizations and see the

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possibilities that you can work together

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to create incremental value in the
marketplace can only be done through

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partnerships. And so, we value very
much the relationship that we have with

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Microsoft and the alignment that we have
on the value of partnerships is real.

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So, thank you for that.
>> Yeah, it's a very interesting

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as I've been studying a little bit
about even different companies. I mean,

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different companies are successful.

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Sometimes companies are successful
by saying we only think about customers,

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customers. It's It makes sense. You know,
if I think about Microsoft, we're

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we're a little more I think we think
of our customers as our partners. That's

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how I think we're a much more
partner-focused, right? How do you

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construct more win-win? Don't think
of everything as zero-sum, you know?

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Otherwise, sometimes what happens
is you have customers and suppliers.

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I think of, you know, everybody is a
customer and a supplier, so therefore

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they're a partner. And when you think
that, then it becomes a very different

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approach. >> I definitely agree.
So, let's talk a

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little bit about technology,
which I know is a

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a real passion of yours. Microsoft is

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leading the way for what is shaping up
to be one of the most significant waves

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of change in the history of the tech
industry with the rise of generative AI.

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I don't know if when you first started
to think about that, did you really

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believe that there would be all
of this that's happening today?

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Would love to understand the role you

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think generative AI will play in shaping

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the future of business and how
you see it shaping humanity

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because I think it has an impact
on humanity and people aren't always

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talking about that. >> No,
you're absolutely right, Glenda.

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There's obviously a lot going on in terms
of generative AI. I would say the

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first time I was able to get a real
sense of what the shift is with GitHub

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Copilot, right? When we started seeing
our software engineers start using

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GPT-3.5 and inside of their coding

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workflow see the productivity gains, see

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even their ability to stay
in the flow of their work.

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That's when I felt there was something
new and big. And I would say there are

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two really new things that are happening.
One is a much more natural

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user interface, which
starts with language but goes

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beyond that. It can take images,
it can take speech input, and also output

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images and speech. So there's going
to be a much more natural user interface

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that will change pretty much every
software category out there. And then

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the second thing is a new reasoning
engine. Just like databases back in the

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day helped us

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with digital information, this new AI

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neural engine, if you will, will help us

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make sense, like summarizations
or continuation. So these are the two

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technological foundations. And they're
being deployed like even as we talked

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about even on American
Express in customer service, in

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in expense management, and in broadly

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every software category is going to be
changed. And I think one way to go about

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this perhaps for every organization
is to get it broadly deployed. If I It

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reminds me a little bit like in the late

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'80s when the PCs first showed up. They

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changed workflow, right? We all remember
before a word processor and after a word

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processor, before a spreadsheet and after
a spreadsheet perhaps for those of

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us who were there at that time working.

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And so I think that's the same thing
that's going to happen now, which is

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fundamental knowledge work workflow will
change across every function and every

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business process, whether it's in

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marketing, sales, support, finance.

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And so that's an exciting time.

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>> Well, what we've seen
is that when technology

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advances and it's used appropriately,

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right? The world just changes, and I

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think to the point around how people um

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and how this affects humanity, it's all

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around how this actually gets embraced

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and rolled out. And it sounds as though
um there's an opportunity to really have

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some fascinating opportunities
going forward. So,

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looking forward to learning more.

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>> That's right. And then I think
your point about the humanity part, right?

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Which is that's why I love to describe

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even this age is the age of co-pilots.

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Um it's about humans having more agency

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and more capability with computers. It's

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not about autopilot. Uh it's really
about sort of ultimately human judgment,

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human agency matters,
and giving more tools.

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>> You know, I was listening to um a

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podcast recently, and it there was a

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conversation around how quickly

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generative AI is accelerating. And it was

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uh fascinating to hear there
are two sides to it, right? It's

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It's it's being accelerated
because companies

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are investing in it because
they see the possibilities,

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and humans are embracing it because

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they're excited about what this the change
this can have. And so, um I think

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there's more for us to learn and more
for us to see, and the important thing

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is to be responsible around it. So,
looking forward to seeing what happens

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next. Um

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I have We talked about empathy
as kind of an under-served

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leadership skill.

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The other one is curiosity uh in my

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opinion. And so, you have had all your

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life a passion for information and

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curiosity, specifically when it comes
to technology and the impact it has on the

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world. It's been a through-line
throughout your life.

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We both know curiosity is powerful.
For me, it's all about wonder and

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questioning. So, as an agent for change,

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what do you consider as you continue
to challenge what's possible? Because

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you've done that so much, and it's
fascinating to watch. Uh so, tell me a

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little bit about that. >> It's a great
way to phrase it. I mean, curiosity,

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um you know, our CTO, Kevin Scott, you
know, uh you know, recently said something

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which has stuck with me, right? He
talks about whenever there are these new

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possibilities or new paradigm shifts, uh

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in our case with some new technology,

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it's when, you know, something hard
is possible now. That's very exciting.

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That's fantastic. But,
when what was something that we

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sort of considered impossible is possible,
that's magical, right? That's

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sort of uh I think what you should be
curious about. What was something that was

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impossible that now can be made possible

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uh because of some new input, some or

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new human ingenuity. Uh so,
one of the areas I'm thinking a

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lot about with the all this
generative AI capability is um

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take something like chemistry, right?

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When I think about energy
and energy transition,

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fundamentally, what we are talking about

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is taking 250 years of chemistry and try

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to compress it in perhaps into 25 years,

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right? Because we've got to synthesize

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some new new compounds, new molecules,

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uh new materials, what have you.
And so, if you sort of take that as the

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challenge, then how do you apply both

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human ingenuity, curiosity, and this new
tool and technology to go after that

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sort of impossibility and turning it

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into something that uh is possible.

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>> You know,
one of my favorite quotes is a

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quote by Nelson Mandela, and he
said, "It is impossible until it

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is done." And so,
I think you and the work that

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you and your team are doing is a perfect
example of that. There's a lot of really

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um great things to kind of stand on the

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sideline or be involved in as generative

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AI and technology continues
to change the world.

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Thank you so much for a great
conversation. I can't wait to see where

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Microsoft goes and where
our partnerships go from here. It's been a

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real pleasure having this
conversation with you, Satya.

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>> Thank you so much, Glenda, for the
opportunity. It was a real pleasure and

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thank you so much
for the partnership as well.

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>> Absolutely. Have a great day.