Microsoft CEO Satya Nadella anticipates 2026 will be a pivotal year for artificial intelligence, marking a transition from hype and experimentation to real-world adoption. He noted a 'model overhang,' where AI capabilities currently exceed practical applications. Nadella stressed that AI should amplify human potential rather than replace it, evolving concepts like 'bicycles for the mind' to cognitive tools that support human goals and productivity. The focus, he stated, should shift from model power to how AI is applied to achieve tangible outcomes.