How the AI Economy Institute is reimagining education, work, and opportunity

Welcome to our Spotlight on AI newsletter, where we cover AI policy, responsible AI practices, how AI is solving some of the world’s toughest challenges, and the latest news in the field. If this is your first time seeing this newsletter, be sure to subscribe and get future editions in your inbox. 

Generative AI is transforming the world at incredible speed. It’s one of the most widely adopted technologies in history. Yet, there are so many questions about how AI will reshape work, education, and productivity. Recognizing this moment gives us the opportunity to design our economic future, rather than let it unfold without purpose. To support this shift, the Microsoft AI Economy Institute (AIEI) is advancing new research and developing real-world solutions that help communities prepare for AI—and ensure its benefits reach everyone. 

As a new corporate think tank, AIEI brings together researchers, economists, educators, and policymakers to answer some of the toughest questions around AI adoption and diffusion. By translating research into policy and practice, it aims to drive positive change and ensure inclusive access to AI’s economic opportunities.  

The first cohort of the AIEI Senior Fellows is focused on higher education, asking: How can colleges and universities prepare students for an AI-powered future? As they research this topic, it’s clear we need to rethink how we teach and train learners. That means emphasizing problem-solving, ethics, and collaboration with AI. It’s not just about technical skills. It’s about understanding how AI can augment human strengths and protect what makes us unique—while also investing in shared infrastructure and expanding access to AI tools across disciplines. 

AIEI is also launching its second global research call: Education in the AI Economy. This new group of researchers will explore how AI is transforming entry-level jobs, K–12 classrooms, and workforce training around the world. The goal? To surface practical, inclusive ideas that help people and institutions adapt with confidence and purpose. 

This is just the beginning. With fast publication times, AIEI will continue to drive new insights so that AI’s economic gains are broadly shared.  

What inspired the creation of the AI Economy Institute? 

My work at Microsoft has always been about exploring how technology can benefit humanity. Leading the AI for Good Lab, I’ve had the privilege of working with researchers, nonprofits, and global organizations to tackle some of the world’s toughest challenges—from climate resilience to access to healthcare. Given the rapid pace of innovation, it’s important to think deeply about the economic and social impacts of AI. That’s what led to the AI Economy Institute. It’s a place where we can bring together voices from different sectors of the economy—educators, policymakers, technologists—and build solutions that help people thrive in this new era. 

What makes the AIEI’s approach different? 

We’re focused on people and scholarship, not just technology and data. That means working across disciplines—data scientists, social scientists, economists, educators, and community leaders all contribute to the research. I’ve seen how powerful that kind of collaboration can be. Another thing that makes the Institute unique is we’re not just advancing independent research. We’re turning that research into actionable solutions to help people around the globe adapt to AI. Our first cohort of Senior Fellows is studying higher education, advancing research and solutions to help colleges rethink how they equip students to learn with AI in the classroom and proficiently work with AI in their careers. 

What’s next for the AI Economy Institute? 

We’re expanding the breadth of research. Our second global research call—Education in the AI Economy—is now open, and we’re inviting proposals from around the world. We’re exploring how AI is influencing the earliest stages of learning and work—from classrooms to career pathways. The future of AI is being shaped right now—and we want to make sure it’s a future that’s inclusive, practical, and built with purpose. AIEI is helping lead that charge, uncovering insights to ensure that AI benefits communities around the world. 

• Explore how Microsoft is strengthening Europe’s digital future by expanding multilingual AI data through new partnerships to help close the language gap and preserving cultural heritage by creating digital replicas of iconic sites such as Notre Dame. 

• Watch how AI is transforming education—from personalized learning to teacher empowerment. In this CBS News video, hear from a 5th grade teacher and Microsoft President Brad Smith on the promise and challenges of AI in schools, including a groundbreaking plan to train hundreds of thousands of educators. 

• Hear more  from Juan Lavista Ferres, the driving force behind AIEI, in this Johns Hopkins Magazine interview. Learn how AI is transforming humanitarian aid, healthcare, and sustainability—and why responsible innovation matters across sectors. 

The Microsoft AI Economy Institute’s first cohort brings together 25 Senior Fellows from leading universities across 4 countries: the United States, Canada, the United Kingdom, and Ghana—including Princeton, Cambridge, and Kwame Nkrumah University of Science and Technology. 

These fellows launched 14 research projects focused on how AI is reshaping education and workforce development. 

The first cohort of AIEI Senior Fellows is exploring how higher education can better equip students for an AI-driven world. With early signs of disruption in the job market, institutions must act to help students thrive in an AI-powered world. Initial insights into the Fellows’ research highlight the need for more flexible, human-centered teaching approaches, stronger faculty support, and clearer guidance on AI use. Read more about the first cohort and their specific projects here.  

If you haven’t already, subscribe to stay up to date on the latest in AI news and innovation from Microsoft.