AI and the Future of Work -- A Measured Transformation | Part 3

This is Part 3 of our series drawn from Microsoft President Brad Smith's conversation on AI strategy with former Australian Prime Minister Kevin Rudd, held in late February 2025 in New York.

Adoption is slower than predicted

AI models are advancing quickly, but Smith takes a more measured view than OpenAI's Sam Altman on how fast that translates into real-world adoption. Rather than an overnight shift, he compares AI's rollout to electricity: transformative, but taking decades to fully embed into how businesses and workers actually operate.

Two ways AI reshapes work

Smith points to two parallel shifts. First, AI as a "copilot": employees working alongside tools like Microsoft Copilot rather than being replaced by them, with early adopters gaining an edge much as spreadsheet experts once did. Second, AI-driven cost reduction at the organisational level, particularly in customer service, admin and logistics, where chatbots, automation and predictive tools are already replacing routine tasks.

Navigating resistance

Workforce pushback, regulatory uncertainty and corporate inertia will all slow adoption, echoing past resistance to technologies like cloud computing. Smith argues organisations need to invest in reskilling, ensure AI enhances rather than replaces roles, and prepare for evolving labour regulation.

The bottom line

AI won't replace jobs overnight — it will unfold gradually, shaped by economic, human and regulatory realities. Handled well, EngageRM believes AI can make the workforce stronger, and is already seeing this play out as it integrates AI into sports technology.

About EngageRM

EngageRM is a global leader in sports and entertainment technology, delivering AI-powered CRM solutions built on Microsoft Dynamics 365 and recognised as Microsoft's No. 1 Global ISV Partner in Sports & Entertainment.