Microsoft’s annual shareholder meeting Friday played out as if on a split screen: executives describing a future where AI cures diseases and secures networks, and shareholder proposals warning of algorithmic bias, political censorship, and complicity in geopolitical conflict.
One shareholder, William Flaig, founder and CEO of Ridgeline Research, quoted two authorities on the topic — George Orwell’s 1984 and Microsoft’s Copilot AI chatbot — in requesting a report on the risks of AI censorship of religious and political speech.
Flaig invoked Orwell’s dystopian vision of surveillance and thought control, citing the Ministry of Truth that “rewrites history and floods society with propaganda.” He then turned to Copilot, which responded to his query about an AI-driven future by noting that “the risk lies not in AI itself, but in how it’s deployed.”
In a Q&A session during the virtual meeting, Microsoft CEO Satya Nadella said the company is “putting the person and the human at the center” of its AI development, with technology that users “can delegate to, they can steer, they can control.”
Nadella said Microsoft has moved beyond abstract principles to “everyday engineering practice,” with safeguards for fairness, transparency, security, and privacy.
Brad Smith, Microsoft’s vice chair and president, said broader societal decisions, like what age kids should use AI in schools, won’t be made by tech companies. He cited ongoing debates about smartphones in schools nearly 20 years after the iPhone.
“I think quite rightly, people have learned from that experience,” Smith said, drawing a parallel to the rise of AI. “Let’s have these conversations now.”
Microsoft’s board recommended that shareholders vote against all six outside proposals, which covered issues including AI censorship, data privacy, human rights, and climate. Final vote tallies have yet to be released as of publication time, but Microsoft said shareholders turned down all six, based on early voting.
While the shareholder proposals focused on AI risks, much of the executive commentary focused on the long-term business opportunity.
Nadella described building a “planet-scale cloud and AI factory” and said Microsoft is taking a “full stack approach,” from infrastructure to AI agents to applications, to capitalize on what he called “a generational moment in technology.”
Microsoft CFO Amy Hood highlighted record results for fiscal year 2025 — more than $281 billion in revenue and $128 billion in operating income — and pointed to roughly $400 billion in committed contracts as validation of the company’s AI investments.
Hood also addressed pre-submitted shareholder questions about the company’s AI spending, pushing back on concerns about a potential bubble.
“This is demand-driven spending,” she said, noting that margins are stronger at this stage of the AI transition than at a comparable point in Microsoft’s cloud buildout. “Every time we think we’re getting close to meeting demand, demand increases again.”
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