AI is offering Global South a unique opportunity to catch up fast: Microsoft’s Brad Smith

Artificial intelligence (AI) offers a unique opportunity to countries in the Global South to bridge the digital divide and lead from the front, Brad Smith, vice chair and president of Microsoft Corp., told Surabhi Agarwal in an interview. Positioning India as a “land of digital opportunity,” he said Microsoft is a key player supporting the country’s $200 billion AI infrastructure push. Edited excerpts:

AI seems to be concentrated in the US and China. What should India’s playbook be?

When you think about AI, you can think about it at the infrastructure layer, at the platforms layer and at the applications layer. There are opportunities here in India for all three and, ultimately, India has made itself the world's software development capital.


Even on days when we are talking about the critical AI models, it's all the applications that are based on AI that may well have the most profound impact on improving healthcare or reducing the cost of energy consumption, advancing literacy, etc.

The developer population in India should look at this as an opportunity. It will require new skills and different ways of working, but the world is going to need more technology, not less. India is in the best position to meet that need.

India is making a large infrastructure play with AI. IT minister Ashiwini Vaishnaw said $200 billion is going into AI data centres. Where do you see Microsoft fit into that strategy?

We are very optimistic and bullish about the future here in India. That's why Satya Nadella, in December, announced our $17 billion-plus investment. Everyone who looks at India sees this is a land of digital opportunity. At the same time, we always need to keep in mind that money will continue to flow as usage grows. That means equipping people with skills, which we're doing, working with customers so they can harness the power of AI and the cloud. It also means being open to investment. It means thinking through digital sovereignty issues, which are essential for the country, but ensuring that that doesn't discourage this kind of investment.

You blogged recently about the digital divide between the Global North and South, not just in terms of technology creation but also adoption becoming more stark with AI. Does this read like an opportunity or a threat for Microsoft?

I think it is both for everyone and not just one company alone. In my view, the economic divide, the greatest divide between the Global North and South, started because of a technology divide. We cannot repeat that experience with AI. We do see uneven adoption. But the opportunity here is also worth reflecting on. If we can bring AI to the Global South, it creates the best opportunity this century for catch-up growth. It means infrastructure, not just data centres, but connectivity and electricity, ensuring that AI works in every language equally well, using AI to create applications that solve people's needs in the Global South. It takes long-term investment and work from public, private and nonprofits to find ways to work together.

Countries want sovereign digital infrastructure. Is this a hindrance to Microsoft’s global ambitions?

What countries mean when they talk about digital sovereignty starts with ensuring that technology is properly under a country's control. This is an even bigger issue in 2026 than it was a year or two ago, because people have concerns about continuity.

We're doing that in multiple ways. One is through our own offerings to create more cyber controls. One is more partnerships, including with geo platforms. But we should reflect on the fact that people are afraid that if they rely on technology from a foreign company, they might put themselves in a position where a foreign government could shut off access to that technology. This is a diplomatic problem. And in part, it requires a diplomatic solution, not just business or engineering solutions.

What I hope is that, as India and the US finalise the trade agreement, they will agree that each country will make its market open for digital services from the other country and, in exchange, they each agree that they will never shut off access to supply.

If you were to draw up a framework for digital sovereignty in today’s AI age, what would it be, and what would you tell a country like India?

I would say focus on three things. Keeping your market open because you need the investment. Number two, protect privacy by having an international agreement in place that regulates when governments in one country may seek data in another for, say, law-enforcement purposes. Three, ensure continuity of services in exchange for keeping the market open, and guarantee that the supply will always be available.

Governments across the world are trying to regulate AI in various ways. What should India’s strategy be? Do you feel there is need for a global framework because of the rapid advancements in AI?

I'm very encouraged by not just the AI issues and the government's policy here in India, but the broader digital agenda. What the Indian government put together on privacy was a very thoughtful conversation we were all having together when I was here in 2023. What India has done has ensured strong privacy protection, but with a light touch so as not to impede innovation.

That basic recipe should also be something that is pursued for AI more broadly. Ultimately, the world will benefit from international collaboration, starting with dialogue and access to a common set of information.

There are a handful of companies attracting large AI investments. Do you feel they have a greater responsibility to ensure that enough measures are taken to contain the harms of AI?

There are a couple of questions and topics that we all serve ourselves well by thinking about more. One is how to ensure that the benefits of AI can spread while protecting children. The social media experiment showed the world that it's not good to let the technology go for a decade before really learning, thinking about, and even trying to regulate some of those issues.

Second, the important question is how AI will change the world of work. What will the impact be on jobs? I think the most important thing we can do is start by recognising we're still early. We're basically at the three-year point since ChatGPT was released.

At Microsoft, we're very focused on trying to think and understand these issues, but then take action to skill people more broadly. If we pursue those two goals together and equip people with skills, then I'm an AI optimist. But mostly I'm also an AI realist. And by that, I mean we all need to focus, learn, think and act together to make the most of what this technology offers.

(With contributions by Shristi Achar.)