AI sector set for exponential growth over next three Years: Microsoft

The artificial intelligence sector is poised for exponential growth over the next three years, driven by rapid advancements in AI models and enterprise adoption, Puneet Chandok, President of Microsoft India and South Asia, said on Monday. Speaking at the AI Impact Summit 2026 in New Delhi, Chandok highlighted that businesses are rapidly shifting from a cloud-first to an AI-first approach.

AI Innovation Accelerating at Unprecedented Pace

Addressing the session titled “AI for Disaster Management: Anticipatory, Hyperlocal, Scalable”, Chandok said the pace of AI innovation has accelerated dramatically in recent months. He noted that the progress made in just the last six months reflects how quickly artificial intelligence models are evolving.

“The next three years could bring growth in the AI sector at a scale of a thousand times,” Chandok said, underlining the transformative potential of the technology.

Coding and Digital Colleagues Drive Adoption

Chandok pointed out that coding has become one of the largest use cases of AI, evolving from simple assistance tools into advanced systems embedded within business workflows. He added that AI-powered digital colleagues are increasingly working as teammates within organisations, fundamentally changing how work is performed.

Governance, Sovereignty and the AI-First Shift

Highlighting emerging challenges, Chandok said AI systems are now capable of drafting legal documents, raising important questions around sovereignty, governance and control. He stressed that organisations must proactively address these concerns as AI adoption scales.

He also noted a major strategic shift in enterprises, stating that businesses are moving from being cloud-first to AI-first, with the next generation of companies expected to be built primarily on AI-driven foundations.

Impact on Jobs and Skills

Addressing employment concerns, Chandok said artificial intelligence will not eliminate jobs but will significantly reshape them.

“AI will not kill jobs, but it will unbundle jobs,” he said, emphasising the need for continuous upskilling to stay relevant in an AI-powered economy.