Nadella urges shift from ‘AI slop’ to real economic value in 2026

As 2025 closes and 2026 begins, Microsoft is still firmly pinning its ambitions on artificial intelligence, even as users worldwide continue to question the quality and real-world usefulness of today’s AI products—fuelled by the spread of the pejorative term “AI slop” across the internet.

Satya Nadella, Microsoft’s chief executive, set out his vision in a post titled “Looking Ahead to 2026”, describing 2026 as a pivotal year for AI. He argued that the industry is moving beyond an early discovery phase and into an era of widespread adoption, and said the focus now should be on separating short-lived spectacle from meaningful substance that improves outcomes in the real world.

The message comes after Microsoft has faced criticism for pushing Copilot into products across its ecosystem—prompting some users to look at alternatives, including growing interest in Linux. 

While Copilot remains central to Microsoft’s strategy—backed by the company’s investment in OpenAI—competitive pressure is rising, with Google’s Gemini accelerating, particularly in the enterprise market that is core to Microsoft’s business.

Windows Central also noted that Microsoft shares had fallen about 5% over the previous two weeks amid concerns the company’s AI edge may be fading. 

For Microsoft, 2026 is shaping up as a test of whether AI can move beyond being seen as “slop” and instead deliver the productivity gains and economic value Nadella says the technology must ultimately prove.