Microsoft CEO Satya Nadella shared his advice to bosses on navigating AI's tech, model, and organizational shifts (www.businessinsider.com)

At GitHub Universe, Microsoft CEO Satya Nadella warned that AI is doing more than adding a new toolset — it’s "ripping and replacing" how companies build, sell, and operate. He told CEOs they must adapt across three simultaneous shifts: a technology shift (models and intelligent systems becoming core production tools), a business-model shift (the arrival of what he calls “true marginal cost” software), and an organizational shift (new ways of producing software and knowledge). Nadella framed the core challenge as learning a new "production function" — rewiring how work gets done when code, design, and content can be generated almost costlessly by AI — and stressed that unlearning legacy habits is often the hardest part of that transition. For the AI/ML community this is a practical call to rethink engineering workflows, MLOps, and product economics. Model-generated outputs change unit economics and push value toward data, model quality, orchestration, and governance rather than per-unit engineering time; companies that postpone the shift risk fast-margin erosion similar to Microsoft's painful cloud migration. Nadella pointed to developers raised on GitHub Copilot as an early preview of new norms, underscoring that winners will rebuild talent practices, evaluation pipelines, and production architectures to integrate AI as a first-class producer — not just an assistive tool.