Microsoft launched the AI Economy Institute (AIEI) in 2025 as a corporate “think tank” to ensure that AI’s rapid advancements translate into broad societal benefits and a people-first economy. The Institute’s strategic rationale is to bridge the gap between technological innovation and societal impact, providing deep research and policy insights on how AI is reshaping work, education, and productivity. By convening interdisciplinary research and turning findings into real-world guidance, AIEI can inform both policy and investment.
To quote Microsoft Vice-Chairman and President Brad Smith, “the most important work ahead isn’t just about building smarter machines—it’s about helping people thrive alongside them”, encapsulating the Institute’s mission to put humans at the center of AI-driven economic transformation.
The pilot cohort
AIEI’s inaugural cohort launched in early 2025 with an initial point of inquiry focused on how AI can transform and enhance higher education – curriculum development, institutions, and specially computer science. 14 proposals were selected to investigate how generative AI can be effectively integrated into colleges and universities to drive innovation in teaching, learning, and workforce preparation.
These inaugural research projects span critical questions – for example, evaluating the real-world labor market value of AI skills and micro-credentials, and exploring how generative AI can spur academic innovation across disciplines. The goal of this first cohort is to produce actionable insights for educators, policymakers, and industry, guiding how we adapt to AI in education and ensuring those insights feed back into Microsoft’s own initiatives (like the Elevate skilling programs) to prepare people for the AI economy. So, while these scholars are producing peer-reviewed research, they are also providing real-time expertise at the speed of the AI Economy.
The AI Economy Institute and its inaugural cohort reflect Microsoft’s commitment to proactively shape an inclusive, opportunity-rich AI economy – one where AI’s benefits are broadly shared and humanity “thrives” alongside advancing technology.
How AI can transform and enhance higher education? —curriculum development, institutional models, and workforce preparation.
AIEI’s inaugural cohort is leading on integrating generative AI into colleges and universities to drive innovation in teaching, learning, and credentialing. This translates to:
Actionable Research for Education
- Providing evidence-based insights on integrating generative AI into higher education that helps universities adapt curricula to meet AI-driven workforce needs, creates a network of thought leaders shaping AI’s role in education and economic opportunity.
Understanding Direct Impact on Skills & Employability
- Evaluating current labor market value of AI skills and micro-credentials, guiding educators and employers to support inclusive pathways for students and workers to thrive in the AI economy.
Humanist AI
- AI is at its most useful when it is an augmentation for human creativity and innovation. This cohort’s research draws attention to the necessity of deep learning and thinking as core to the educational experience.
Artificial intelligence