Microsoft rebuilding software stack from scratch for AI agents, says Jay Parikh
Jay Parikh, Executive Vice President at Microsoft, described India as one of the world's most vibrant and fastest-growing AI communities, highlighting the country's large developer base and expanding role in building AI products. He said India has 27 million developers on GitHub, with more than 2 million joining the platform this year alone.
Jay Parikh, Executive Vice President at Microsoft said the company is in the middle of rebuilding its software stack from the ground up to support a new generation of AI agents that can plan, reason and take action inside a business with limited human input.
"It requires an entirely top to bottom systems overhaul of what we've done to build software in the past," he said, adding that the agents now interact with the real world and need new kinds of security guardrails that didn't exist in earlier software.
As a result, Microsoft is redesigning its entire technology stack to support this new generation of software and accelerate the transition to an agentic AI ecosystem
That pace of change has forced Microsoft to abandon the kind of long-range planning common in enterprise software. Parikh said some teams now operate week by week, and a few day by day, rather than locking in roadmaps for six months or a year. "You wake up the next day and scratch it out, and try something else," he said, describing how quickly plans can become outdated.
According to Parikh, Microsoft's focus is not just on developing AI tools but on building flexible platforms that can adapt to changing technologies and customer requirements. The company is working on systems that help enterprises run, manage and secure thousands of AI applications while optimising costs through model selection and improved efficiency.
He said businesses are moving beyond basic AI interactions and are increasingly using AI for complex research, planning and analysis tasks that previously took days or weeks to complete. This shift, he said, is creating stronger demand for computing infrastructure and AI services.
Read Here | AMD sees AI as a once-in-a-generation opportunity as computing undergoes a fundamental shift
Responding to concerns over the massive capital spending plans announced by major technology companies, including Microsoft's projected $190 billion investment in 2026, Jay Parikh said the company remains focused on delivering value to customers and aligning investments with demand.
He said the way customers use AI has evolved significantly over the past two years. Earlier, tools such as Copilot were largely used for simple question-and-answer tasks. Today, enterprises are using AI for more sophisticated applications, including competitive analysis, product research and business model evaluation, often combining information from spreadsheets, presentations, emails and other internal documents.
According to Parikh, AI is increasingly helping businesses complete work that previously required days, weeks or even months in a matter of hours or minutes, leading to growing demand for more advanced capabilities and infrastructure.
He said Microsoft's product roadmap is being shaped by these changing customer requirements, with the company focusing on use cases that deliver higher returns and greater business value. He added that Microsoft's spending plans are driven by demand and are based on close collaboration with customers.
Parikh described India as one of the most vibrant and fast-growing AI communities globally, highlighting the country's large developer base and growing role in building AI products. He said India has 27 million developers on GitHub, with more than 2 million joining the platform this year alone.
According to Parikh, developers and companies in India are among the most active users of AI technologies, with startups and multinational firms alike building products and driving digital transformation. He noted that small teams are creating highly valuable businesses while also making significant contributions to open-source AI projects.
Microsoft continues to deepen its investments in India through data centres, skilling initiatives and product development operations, reflecting the country's importance in the company's global AI strategy.
For the entire discussion, watch the accompanying video
"It requires an entirely top to bottom systems overhaul of what we've done to build software in the past," he said, adding that the agents now interact with the real world and need new kinds of security guardrails that didn't exist in earlier software.
As a result, Microsoft is redesigning its entire technology stack to support this new generation of software and accelerate the transition to an agentic AI ecosystem
.
That pace of change has forced Microsoft to abandon the kind of long-range planning common in enterprise software. Parikh said some teams now operate week by week, and a few day by day, rather than locking in roadmaps for six months or a year. "You wake up the next day and scratch it out, and try something else," he said, describing how quickly plans can become outdated.
According to Parikh, Microsoft's focus is not just on developing AI tools but on building flexible platforms that can adapt to changing technologies and customer requirements. The company is working on systems that help enterprises run, manage and secure thousands of AI applications while optimising costs through model selection and improved efficiency.
He said businesses are moving beyond basic AI interactions and are increasingly using AI for complex research, planning and analysis tasks that previously took days or weeks to complete. This shift, he said, is creating stronger demand for computing infrastructure and AI services.
Read Here | AMD sees AI as a once-in-a-generation opportunity as computing undergoes a fundamental shift
Responding to concerns over the massive capital spending plans announced by major technology companies, including Microsoft's projected $190 billion investment in 2026, Jay Parikh said the company remains focused on delivering value to customers and aligning investments with demand.
He said the way customers use AI has evolved significantly over the past two years. Earlier, tools such as Copilot were largely used for simple question-and-answer tasks. Today, enterprises are using AI for more sophisticated applications, including competitive analysis, product research and business model evaluation, often combining information from spreadsheets, presentations, emails and other internal documents.
According to Parikh, AI is increasingly helping businesses complete work that previously required days, weeks or even months in a matter of hours or minutes, leading to growing demand for more advanced capabilities and infrastructure.
He said Microsoft's product roadmap is being shaped by these changing customer requirements, with the company focusing on use cases that deliver higher returns and greater business value. He added that Microsoft's spending plans are driven by demand and are based on close collaboration with customers.
Parikh described India as one of the most vibrant and fast-growing AI communities globally, highlighting the country's large developer base and growing role in building AI products. He said India has 27 million developers on GitHub, with more than 2 million joining the platform this year alone.
According to Parikh, developers and companies in India are among the most active users of AI technologies, with startups and multinational firms alike building products and driving digital transformation. He noted that small teams are creating highly valuable businesses while also making significant contributions to open-source AI projects.
Microsoft continues to deepen its investments in India through data centres, skilling initiatives and product development operations, reflecting the country's importance in the company's global AI strategy.
For the entire discussion, watch the accompanying video
(Edited by : Prashant)
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