MOLLY WOOD: Today, I had the opportunity to speak with entrepreneur and author Azeem Azhar. As the publisher of the Exponential View newsletter for nearly a decade, he has been at the forefront of analyzing how technology is transforming every aspect of our lives and work. Additionally, he serves on the World Economic Forum’s Global Futures Council, providing valuable insights on adapting to and succeeding in a rapidly changing world. Azeem joined me to share his expertise on navigating this era of accelerated change. Here’s my conversation with him. Azeem, thank you for taking the time to speak with me.

AZEEM AZHAR: Thank you, Molly, for having me.

MOLLY WOOD: For those who may not be familiar with your work, could you provide an overview of the topics you explore in your newsletter, Exponential View, as well as your speaking engagements and interviews?

AZEEM AZHAR: The title of my newsletter, Exponential View, hints at its focus on fast-changing technologies, with artificial intelligence being a primary area of interest. However, I also delve into other exponential technologies, such as the declining cost of solar panels and batteries, and advancements in biology, including gene sequencing and genomics. My framework for understanding these technologies involves analyzing why they become cheaper, the consequences of this cost reduction, and how these changes manifest in business, the economy, and society.

MOLLY WOOD: Having witnessed numerous disruptions, what high-level advice would you offer on how to adapt a business and its culture to these changes?

AZEEM AZHAR: The reality is that there is no established rulebook for navigating this new landscape. The key challenge for business leaders is recognizing that they can no longer rely on traditional playbooks or textbooks. Instead, the ability to learn and adapt is crucial. This learning must come from direct experience with the technologies. For instance, in the early days of the internet, simply counting website visitors was a complex technical problem that required invention and innovation. Today, with AI, we are in a similar early phase, where it’s not yet clear when everything will stabilize to the point where we can rely on manuals or guides.

MOLLY WOOD: You wrote an interesting piece in January about contrarian ideas regarding GenAI in the workplace, starting with the point that we are only scratching the surface of what will happen to work. Can you explain why you think this is such a significant deal and why we’re only beginning to understand its implications?

AZEEM AZHAR: The technology of GenAI is revolutionary, allowing computers to interact with us in sensibly and perform tasks like turning half-baked thoughts into structured outlines or writing research reports. This capability is at the heart of the cognitive work driving most companies’ value. Given that companies have spent the last 30 years digitizing their processes, this new technology can integrate seamlessly, making it a game-changer. The combination of powerful, easy-to-use technology and its widespread availability, as seen with tools like Microsoft Copilot, creates a unprecedented situation.

MOLLY WOOD: One evolution that business leaders are struggling to keep up with is the transition from AI assistants to AI agents. Can you explain this shift?

AZEEM AZHAR: The difference between an assistant and an agent is significant. An assistant operates in a query-response mode, whereas an agent can undertake open-ended, multi-step tasks with goals. This takes the human out of the loop for intermediate tasks. For example, I use an agent system where I can have a virtual focus group discuss and improve messaging until they all agree it’s compelling. This process happens autonomously, saving time and reducing the potential for human error.

MOLLY WOOD: You’ve mentioned that in the future, we’ll have hundreds of agents working on our behalf. How does this reshape business?

AZEEM AZHAR: Having hundreds of agents at our disposal means we can offload tasks, freeing us to focus on high-value work. For instance, I use agents for detailed research, which can produce annotated, thousand-word reports with references. This capability is akin to having junior analysts working for days, but at a fraction of the cost and time. The key is to apply these tools to areas that drive business value, rather than just automating low-cost tasks.

MOLLY WOOD: Fundamentally, our conversation keeps coming back to leadership, adaptation, and adoption. How do leaders balance playing offense, unlocking new opportunities, and defense, reducing costs and ensuring effective tool adoption?

AZEEM AZHAR: I advise CEOs that building a great business isn’t about cutting costs but about delivering more and creating value. This requires frontline employee insights, as they understand which processes work and which don’t. CEOs must also believe in the potential of the technology to drive radical change, rather than just signing off on checklist items. This belief and intentionality are crucial for driving teams forward and making significant changes.

MOLLY WOOD: So, how does AI help leaders navigate other changes like economic uncertainty, supply chain disruptions, and intensifying competition?

AZEEM AZHAR: AI can help address these challenges by providing analytical power to understand root causes, dependencies, and potential scenarios. These tools can assist with strategic planning, scenario analysis, and decision-making, making leaders more informed and reactive. While human dimensions like persuasion and belief are still necessary, AI can significantly enhance the cognitive and knowledge components of decision-making.

MOLLY WOOD: You’ve written about the distinction between data and knowledge. Can you elaborate on this difference?

AZEEM AZHAR: Data is the raw, lowest-level unit, useful for understanding patterns. Generative AI, however, allows us to synthesize across domains, turning data into higher-order analysis and knowledge. This enables companies to make knowledge-driven decisions and transform their operations, rather than just optimizing existing processes.

MOLLY WOOD: What are some unexpected ways you’ve used AI in your work or personal life?

AZEEM AZHAR: One of my power tools is dictating random thoughts into an LLM while driving, which then structures them into actionable to-dos by the time I reach my desk. This has been incredibly helpful for productivity and time management.

MOLLY WOOD: Are there opportunities and challenges for AI at work that we haven’t discussed?

AZEEM AZHAR: A significant challenge will be the redefinition of job boundaries and the nature of work. This will require organizations to be fluid and adaptive, which can be difficult. It will take time to understand how AI changes the handoffs between tasks and people, but the potential for rehumanizing work and focusing on areas where humans excel is vast.

MOLLY WOOD: Looking ahead three to five years, what do you think will be the most profound change in the way we work?

AZEEM AZHAR: Hopefully, we will see a rehumanization of work, allowing people to focus on aspects they enjoy, such as the social, creative, or strategic dimensions. This could lead to more fulfilling and productive work environments, enabled by the support of AI tools.

MOLLY WOOD: I love that concept – better humans, thanks to machines. Azeem Azhar, thank you for your insightful thoughts.

AZEEM AZHAR: Thank you, Molly.

MOLLY WOOD: This conversation kicks off our new season of WorkLab. Thank you all for listening, and stay tuned for more fascinating guests with actionable insights on developing an AI-first mindset and maximizing AI’s ROI. If you have questions or comments, please email us at worklab@microsoft.com. You can find all our episodes and more at microsoft.com/worklab. Don’t forget to rate, review, and follow us wherever you listen to podcasts.