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President Brad Smith said he believes tech companies and the state need to work hand in hand, and Washington’s economy will suffer if they don’t.
SEATTLE — From personal computing to Xbox, cloud computing to AI, Microsoft continues to drive innovation and transform the way we live.
As Microsoft celebrates five decades in business, President Brad Smith sat down with KING 5 to share why he believes tech companies and the state need to work hand in hand – and why Washington’s economy will suffer if they don’t.
Joyce Taylor: What do you think are the biggest threats for tech companies like Microsoft, especially in Washington?
Smith: There are proposals in Olympia that, frankly, would take our economy backwards and put jobs at risk. And taxing jobs in the form of a payroll tax. Payroll tax makes it more expensive to create jobs here. A so-called “wealth tax” would really, I think, discourage people from starting up companies in Washington state.
Today, we are the most technology-dependent state in the United States. 9.4% of our jobs are tech jobs, higher than any other state. California is bigger, but it’s only 7.7% because these jobs pay so well. It’s 22% of our economy. There are 3,000 startups in our state. If you look at the 500 largest startups, fully a third were started by people who had worked at Microsoft.
Taylor: Based on the numbers and the data, our state’s economy is dependent on a healthy tech economy.
Smith: That is absolutely the case. There is no such thing as a healthy, prosperous Washington state without a healthy and prosperous tech sector in Washington state.
Taylor: Microsoft is making an $80 billion investment in artificial intelligence. So, how do you think that’s going to impact the global landscape, particularly with EU regulations and competition with China?
Smith: What it really reflects is our belief that AI is fundamental to the future, the economic competitiveness of the United States, but really for humanity, the ability to discover new drugs, to improve healthcare, to advance science, to change the way we learn.
Taylor: When you say AI, some people are so excited. I use AI in my everyday work. Some people are terrified. How does the everyday user differentiate between what is accurate with AI, which we would assume is almost everything, and what is not?
Smith: I would say two things. One, AI is still a relatively young technology. When it comes to generative AI, it will continue to get better, but don’t turn off your brain. Continue to think and ask: Does this make sense? If not, then ask another question, and you’re probably going to get the right answer.
Taylor: I believe Microsoft is training two and a half million Americans in AI skills. So, how will you address job displacement?
Smith: I think this is going to be one of the most important topics we’ll all talk about in the five and 10 and frankly, 25 years ahead. I don’t actually believe that people run as much of a risk of losing their job to AI as they might run a risk of losing their jobs to someone who knows how to use AI.
Taylor: When it comes to environmental sustainability, what is the company doing, particularly as it relates to large-scale data centers?
Smith: We’re doing this work with three principles in mind. Number one, we need to invest, and we are to bring new sources of electricity online to provide the power that we need. Number two, we need to invest in renewable or carbon-free energy, wind, solar, nuclear and third, we have to manage this so that if there’s improvements that are needed to the grid, for example, that we pay that price.
Taylor: So let’s reflect on 50 years. What do you think has been Microsoft’s most transformational achievement?
Smith: Well, in some ways, the most amazing thing for a tech company that hits 50 years and is still important in the world is just the fact that it managed to do that. I think our most transformational accomplishment has been to constantly change.
Taylor: Is there one achievement or two that you are most proud of as you look back over your own 31-plus years with the company?
Smith: When I look back at my 31 years at Microsoft, and that’s just 31 of the 50. There’s a lot of years that were hard. From a broad perspective, go back a decade, Microsoft was not at the absolute forefront. When people were talking about phones, they were talking about Samsung and Apple.
There are very few times in the history of technology when a company is able to really define some technological errors slip and then come back. And I think that is a testament to ingenuity, to perseverance, to resilience, and fundamentally to innovation. But the other thing that I feel so good about is the community orientation of this company. It started with Bill Gates. It started with his parents. We created not just a program, but a culture where people give to the community.
80% of our employees in Washington state donate either time or money to nonprofits in this state. That’s an extraordinarily high percentage. We generate about $125 million per year to almost 5,000 nonprofits in Washington state.
Taylor: What are your aspirations for Microsoft into the future?
Smith: We should want to do fundamentally, three things. Number one, we have to remain at the forefront of innovation. We need engineers and designers and lots of other people who are going to carry our innovation forward. Number two, I think we have to be a force for good and third, I feel a huge sense of responsibility, as I think all of us who are leaders here today do for our role in Washington state. If we do those three things together, then hey, I’d say the next 25 years, they should be our best 25 years, and that should be our goal.