Microsoft's CEO Satya Nadella has announced plans to integrate artificial intelligence (AI) into all of the company's customer solutions and every layer of its tech stacks. In his annual letter to shareholders, Nadella emphasized that the next generation of AI will reshape every software category and every business, including Microsoft's own.

He highlighted natural language processing and generative AI as two breakthroughs that will be pivotal in this new era of AI. Microsoft has already integrated its AI Copilot into services such as Microsoft 365, Dynamics 365, and GitHub, but Nadella did not specifically outline the firm's AI plans for its gaming unit.