Last week, Satya Nadella, CEO of Microsoft, shared his annual message on LinkedIn. His letter spans over 4,500 words, predominantly exploring the ways artificial intelligence (AI) is transforming technology and, by extension, Microsoft’s role in this new age. Nadella has consistently underscored the revolutionary impact of AI, equating it with milestones like the PC in the 1980s, the internet in the 1990s, mobile technology in the 2000s, and cloud computing in the 2010s. For Microsoft, AI represents a foundational shift in human-computer interaction, making it central to the company’s current and future vision.
Within his extensive commentary on AI, Nadella emphasizes a critical phrase: “trust is earned, not given.” For him, these five words convey a fundamental leadership lesson, especially in what he calls the “age of AI.” As Microsoft steers much of its future on AI, Nadella underscores that trust—particularly in areas like cybersecurity, privacy, and digital safety—remains an essential priority, saying, “We recognize that trust is earned, not given. And we remain committed to earning trust every day, spanning cybersecurity, trustworthy AI, privacy, and digital safety.”
Trust, Nadella argues, is not automatic. It requires consistent effort, particularly in the evolving realm of AI, where trust is often shaky. Many consumers view AI with skepticism, perceiving it as something more entertaining or experimental than dependable. ChatGPT, a widely recognized generative AI model, might be enjoyable to use, but it is far from being anyone’s primary method of interacting with technology. This general skepticism toward AI technology reflects a broader lack of trust, which can arise from several factors.
One of the main issues is how AI models are developed. Generative AI systems, for instance, are trained on vast amounts of internet data, including content created by individuals who may receive no compensation or recognition. This creates a somewhat uneasy relationship between AI users and providers. Moreover, AI’s rapid advancements mean these models sometimes evolve beyond human comprehension, raising concerns about control and predictability. AI systems, including chatbots, are known to occasionally generate inaccurate or misleading information, challenging user trust.
In the case of Microsoft, these concerns are particularly significant. The company plays a pivotal role in introducing AI technologies to both commercial and personal users, while simultaneously risking its own reputation by taking these advancements forward. Nadella’s message underscores that even with Microsoft’s standing as a tech giant, trust cannot be assumed—it must be cultivated continuously. This is especially true for companies with as large a stake in AI as Microsoft, where reputational risk is always a factor.
From Nadella’s perspective, trust is the bedrock of any successful relationship between a company and its customers. He emphasizes that it is trust that motivates people to buy products, share personal information, and engage with technology platforms. For instance, users share sensitive information, including credit card details, because they believe in a brand’s reliability and security. Nadella’s “trust is earned, not given” stance reflects the notion that a company’s most precious asset is its credibility, an asset that is both hard-earned and fragile.
Building trust, as Nadella suggests, demands rigorous effort. Trust is not a one-time achievement; it requires ongoing maintenance and diligence. It can be shattered easily, especially in the high-stakes world of AI, where uncertainties abound. Errors in AI technology, from privacy breaches to inaccurate information, can quickly erode trust. Nadella’s approach is a reminder to other business leaders of how valuable and delicate trust is, especially when a technology as transformative as AI is involved.
In Nadella’s view, even Microsoft—a global leader in the tech industry—cannot take trust for granted. The company’s size and reputation do not automatically grant it the trust of users. Instead, Microsoft must actively earn this trust, a challenge facing many businesses today. Even those companies not directly involved in building the next generation of computing platforms can benefit from this approach, recognizing that trust is as essential in small business interactions as it is in large corporations. For leaders, Nadella’s five-word philosophy offers a guiding principle for building lasting, trust-based relationships with customers in the age of AI.