Exclusive: Why Microsoft is betting its future on AI

Satya Nadella bounded into the conference room, eager to talk about intelligence. I was at Microsoft’s headquarters in Redmond, WA, and the company’s CEO was touting the company's progress in building more intelligent apps and services. Each morning, he told me, he puts on a HoloLens, which enables him to look at a virtual, interactive calendar projected on a wall of his house. Nadella appeared giddy as he described it. The system was intelligent, productive, and futuristic: everything he hopes Microsoft will be under his leadership.

No matter where we work in the future, Nadella says, Microsoft will have a place in it. The company’s "conversation as a platform" offering, which it unveiled in March, represents a bet that chat-based...

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