Over the past three years, the pace and intensity of work have skyrocketed. People are struggling to do their jobs while grappling with always-on communications, inefficient meetings, and information overload. “Sixty-four percent of people told us that they felt like they didn’t have the time or the energy to do their jobs,” says Jared Spataro, Microsoft’s corporate vice president of modern work and business applications.
Can AI help lift the burden? In this conversation, Spataro and Colette Stallbaumer, general manager of Microsoft 365 and Future of Work, discuss Microsoft’s latest Work Trend Index report , which explores these dilemmas through surveys of 31,000 people in 31 countries and trillions of Microsoft 365 productivity signals, along with labor trends from the LinkedIn Economic Graph. They also share their experiences using the recently announced AI tool Microsoft 365 Copilot to work more efficiently.
Spataro and Stallbaumer’s conversation is the seventh episode for season 4 of Microsoft’s WorkLab podcast, in which business leaders, economists, designers, psychologists, and technologists explore the data and insights into why and how work is changing.
Three big takeaways from this conversation:
Survey respondents suggest that there is both concern and excitement about how AI could transform work. “About 50 percent of people said that they were worried about AI taking their jobs,” Spataro notes, “but an amazing 70 percent said that despite that, they’d be willing to essentially delegate as much as possible to some sort of AI assistant to help them out at work.”
Both Spataro and Stallbaumer have been using Microsoft 365 Copilot , which brings AI to work. They share preliminary insights on how it’s changing their work experience. “I love using Copilot in the context of meetings,” Spataro says. “At first, I thought it was just a fun thing to do, but it’s like having an incredible assistant listening closely to the dynamics of meetings. Sometimes I’ll ask Copilot, What are the different sides of this debate, and can you summarize them for me? Who’s on what side?”
“This moment in AI is no different than the shift to remote and flexible work,” Stallbaumer says. “Leaders and organizations will really need to be thoughtful about how to prepare culturally for this shift, and how to help employees feel comfortable learning to work alongside an AI copilot that helps you throughout your day.”
Follow the show on Apple Podcasts, Spotify, or wherever you get your podcasts.
Here’s a transcript of the episode 7 conversation.
MARY MELTON: This is WorkLab , the podcast from Microsoft. I’m your host, Mary Melton. On WorkLab , we hear from leading thinkers on the future of work. Economists, technologists, researchers—they all share surprising data and explore the trends transforming the way we work.
JARED SPATARO: It is one of those things where I think seeing is believing, and that’s what has been most interesting about the moment we find ourselves in; you know, you give it a try and people think, Wow, I can see this will really change how I work and how work will be done.
MARY MELTON: This week, we explore findings from the 2023 Microsoft Work Trend Index, a global report of 31,000 people in 31 countries. This year’s report reveals how digital debt is impacting employee productivity and creativity, and how next-generation AI can help lift that burden and usher in a new productivity wave. To help us unpack the insights in the report, we’re sharing a conversation between two Microsoft leaders: Jared Spataro, corporate vice president of modern work and business applications, and Colette Stallbaumer, who’s the general manager of Microsoft 365 and Future of Work, and who previously led communications for CEO Satya Nadella. They explore trends and insights from the report, and talk about the recently announced Microsoft 365 Copilot and what they’re learning from using the new AI product in their workday. Now, here’s the conversation with Jared and Colette.
COLETTE STALLBAUMER: Good morning, Jared.
JARED SPATARO: Good morning, Colette.
COLETTE STALLBAUMER: We are going to dive into this pretty incredible time that we’re in with the platform shift to AI. And I know, to us, it seems like this all happened so fast. Can you ground us a little bit on how we got here?
JARED SPATARO: Boy, we could go back a long time, but maybe I’ll just go back a little over three years ago. I think we couldn’t have this moment in AI, as you and I have talked about, without having the incredible digitization wave that swept over the planet as a result of how we all adapted to the pandemic. And I think it’s worth remembering that because some things really changed. I remember pre-pandemic, the hardest thing I had as a part of my job was running around the globe trying to convince people to turn their video on when they were in meetings. [ Laughs ] It just wasn’t a norm, it wasn’t something people wanted to do. And we’re so far past that at this point. But we also, as a result of all of that, are now living in a day, in a moment when communication is more free. It is easier than ever before. We see that in the Work Trend Index we do. We definitely see that in people’s—how they’re feeling about their jobs right now.
COLETTE STALLBAUMER: Yeah, you know, it’s really interesting how we pivoted a lot of our research three years ago to really study intensely how work is changing. And now, as we’re on the cusp of this shift to AI, customers are turning to Microsoft. How do we navigate it? How should we think about this? How is it really going to change work? So as we did this study, we saw some really interesting findings around that. What stood out to you?
JARED SPATARO: The number that captured the feeling that I sensed as I talked to people all around the world is 64 percent. Sixty-four percent of people told us that they felt like they didn’t have the time or the energy to do their jobs. And that was fascinating to me. You know, I wanted to understand what’s going on here. So we combined that with our telemetry data, where we started to just simply look at, what are people doing throughout the day, you know, how has that shifted since the beginning of the pandemic? And we did see what I felt like were some pretty clear trends. You know, almost 60 percent of people’s time now is spent in communication and coordination and collaboration, which doesn’t sound like a bad thing. But 60 percent is a lot of time. And that leaves only, you know, roughly about 40 percent of time to be doing focused, creative, innovative work. I was speaking with someone about that phenomenon, and she had a really nice way of talking about it. She said, I feel like I have two jobs now. I have the job I was hired to do, and I have a job that is largely meetings and emails and chats that I have to do to get to that first job. We ended up calling that digital debt. I really like that label. That sense of digital debt hangs over most of us, is what it feels like, and that sets the scene for AI because I think people wouldn’t be as open as we found them to be if they didn’t have that sense of like, boy, I’m going to need some help. And that leads us to some of the nuances we found in people’s feelings about AI. Was there anything that caught your attention? There are some headlines for sure that people are worried about AI and their jobs, but anything else that you saw?
COLETTE STALLBAUMER: Yeah. I think what’s really interesting as we’ve done these Work Trend Index studies over a period of three years now is, every once in a while we hit upon something that really feels true, that emotional resonance for people. And that’s what digital debt was this time. You know, we discovered that with productivity paranoia in September of last year. And this time, as you’re saying, it really seems like people are relating to the fact that, wow, yeah, it’s easier than ever to communicate, but harder than ever to keep up. And they feel that in their jobs, that’s really where people are hopeful that AI will help. We really do need a new way to work. The amazing technology shift that happened over the past three years to where now everyone working from anywhere can communicate and connect is a fantastic thing. And we’re all in a lot more meetings, and there’s a lot more information coming at us each day. It really shows up in the data, and they tell us that’s how we’re feeling.
JARED SPATARO: So diving into that for just a second, you know, about 50 percent of people said that they were worried about AI taking their jobs, but an amazing 70 percent said that despite that, I’d be willing to essentially delegate as much as possible to some sort of AI assistant to help me out at work. And then what really got my attention, we asked them, what type of work would that be? And of course, administrative work was on their minds, but it wasn’t the only thing. Creativity was definitely something that we saw people saying, boy, I could use some help creatively. I know, Colette, you’ve been using Copilot as an assistant at work. Are there ways that you have already discovered that AI is helping you to be more creative?
COLETTE STALLBAUMER: Yeah, you know, that was a surprising insight that people who are in creative roles, people like myself, others, marketing folks, other people who identified as having a creative type of job, said that the more familiar they were with AI, the more likely they felt they would be to use AI to help them in their jobs. And that was surprising to us. I am definitely turning to Microsoft 365 Copilot increasingly in my day, whenever I have that feeling of just a little bit of writer’s block. We all get stuck. Hey, I need a different way to say this, and just being able to turn to my Copilot and ask for a little help on that. As we were working on the launch of Microsoft 365 Copilot, we were using Copilot. We were asking Copilot how to talk about Copilot and to create slides for the launch materials and the content and those kinds of things. So I think we’re just learning and experimenting and finding new ways that Copilot can help us every day.
JARED SPATARO: Kind of amazing. Six months ago, I didn’t even think about AI at work, to be totally honest with you. I’m sure it was there. You know, we talk about autopilot in places we don’t see it, but I explicitly am turning to it in ways that I wouldn’t have imagined half a year ago.
COLETTE STALLBAUMER: Yeah, tell me some of yours.
JARED SPATARO: Oh, I love using Copilot in the context of meetings. At first I thought it was just a little bit of a fun thing to do, but it is like having an incredible assistant listening so closely to the dynamics of meetings. So I really, sometimes in difficult meetings I’ll ask, What are the different sides of this debate, and can you summarize them for me? Who’s on what side? You know, just querying the meeting with Copilot. For me, it never gets old. It’s like one of those moments of like, huh, here we are again. Look at that. I didn’t attend this one, and in five minutes I can get everything I need out of this hour exchange.
COLETTE STALLBAUMER: Yeah. And we saw in the data that meetings are people’s number one productivity disrupter. And so, you know, up 250 percent over the past few years since we’ve been working in this new way. And we’re, you know, we’re drowning in them. Even just yesterday, I know when we were meeting as a team and one of our colleagues asked about the meeting sentiment in Copilot, it was fascinating to see how accurately it can play back, even how people are feeling in a meeting.
JARED SPATARO: Yeah, amazing. It is one of those things where I think seeing is believing, and that’s what has been most interesting about the moment we find ourselves in. You know, you give it a try and people think, Wow, I can see this will really change how I work and how work will be done. Maybe you could talk for a moment about how customers can prepare for this platform shift, because I sure have a lot of people who ask me, and we do talk a bit about this idea of foundational productivity. There are some building blocks and steps to get there. What are your customer conversations like right now, Colette, as you’re helping people prepare to use AI?
COLETTE STALLBAUMER: Yeah, I think what’s so different from three years ago is, with remote and hybrid work, everyone was really flung into that, and we were all immediately having the same lived, shared experience. And with AI it’s very different, right? And so I think the customer conversations are so different today. We still see customers turning to Microsoft in this moment to say, How should we think about it? How should we navigate it? Customers are optimistic and they have questions.
JARED SPATARO: Yeah, definitely lots of questions. But I’ve noticed that they aren’t just technical questions. There are real cultural questions that customers are recognizing. This is a pretty big cultural shift. And Colette, I think that, out of all the people in the world, you may be one of the most qualified to talk about massive cultural shifts. You led comms for Satya during what was, at least at our company, a really big cultural shift. What did you learn from that experience that you think applies to this new moment with AI?
COLETTE STALLBAUMER: You know, it really is true, our friend Peter Drucker, what he said about culture eating strategy for breakfast. This moment in AI, no different than the shift to remote work and flexible work. Technology alone is not enough for every organization. You also have to think about the culture, and you have to help people make that shift. With AI, it’s both a mindset shift and a behavior shift. And one of the hardest things to do is change human behavior. In the pandemic, we didn’t have a choice, so we all adapted. And now, I think learning to work alongside a copilot that really will help you every day throughout your day is learning a new way to work. And I think that leaders and organizations will really also need how to think about that culturally and how to help people feel comfortable, how to help them be thoughtful. You know, we designed Copilot with human agency at the center and it doesn’t get everything right. It still will put you further ahead. But people play a really important role in checking the data and verifying the answers in the content that it’s giving you. And so I think we are entering this really interesting phase where there will be a lot of learning.
JARED SPATARO: There’s quite a bit of debate about that idea of usefully wrong, I’ve noticed. You know, a lot of anxiety, I might say. People are used to interacting with computers in a pretty deterministic way. I ask a question, you give me the right answer. Thank you very much. I move on. And that’s not what we’re seeing with these foundational models, you know, with these large language models. Any experience you’ve had, Colette, as you’ve started to use it, navigate it? What would you say to the world about that fear that, gosh, but it’s not always right? How do you speak to it?
COLETTE STALLBAUMER: You know, I think we also saw in the data that optimism outweighs fear. We saw 70 percent said that they would be happy to have AI help them out. And I think it goes back to that early thing we were talking about with digital debt. It’s because people do feel, intensely, the weight of work. And so they’re looking for that help. And at the same time, I think it’s just going to take a lot of experimentation.
JARED SPATARO: Once you get the hang of usefully wrong, once you get the hang of like, well, it’s an input and, typically a very valuable input, but it’s just an input. You start to see it in a different light. At least my relationship with the computer has started to change. You know, I see it no longer as this tool of exactness, but instead this tool that’s designed to, in some ways, kind of pull the best out of me. That’s pretty interesting. You know, that idea of a relationship forming where, gosh, it’s prompting of me and that is cool. You know, I’m always inspired by this idea that technology can bring the best out of people, that there’s this innate spark in them that we’re just trying to uncover and help them find and help them develop into kind of this roaring fire, and that’s cool. You know, that definitely motivates me. And it’s funny because who would have thought that AI, you know, artificial intelligence, can actually help find the best of real intelligence. And that, I think, is, you know, it’s an insight that I’m starting to feel as I use the tools myself. And I think people will start to discover it as these tools become more prevalent in our work lives.
COLETTE STALLBAUMER: Yeah, I love what you said about that, you know, there’s surprise and delight as you use them more and more. And I think that is going to be what’s going to really both surprise people and help bring out the best. If you’re good at something, it’ll help you be even better at it. And if maybe that isn’t a skill that you are great at, like making PowerPoint slides or designing animations, it’s going to help you learn new things.
JARED SPATARO: Turning our attention to a little bit different angle for a moment. This is a time of unique tensions in work, and one of those tensions is between employees and managers. And we’ve seen the idea of productivity paranoia, this idea that employees are feeling like, Hey, I could work from anywhere and be really productive, and managers are saying, I’m not so sure about that. I feel it in my own work, for sure, and on my own team. But it was interesting to see that in this most recent survey that leaders are more focused on driving productivity with these AI innovations than they are reducing headcount. Do you see that reflected in your customer conversations as well, or is there a little bit more color you can offer?
COLETTE STALLBAUMER: Yeah, I do. It’s less about AI replacing your role or your job than it is about thinking about specific tasks, and what are those specific tasks that Copilot can take on. You know, not just automating the mundane, but things that it can do for you that can 10x the speed or the quality of whatever you’re working on, or take that task away so that you can spend time on things that really actually give you joy at work, which, wouldn’t that be nice. And so I think for the most part, business leaders are looking for that same thing. They want to have their people doing really meaningful, fulfilling, energizing work. So at the end of the day, every organization has a bottom line, and they also have quarterly numbers to make. And so I think that’s why we have found over the past three years this conversation around productivity. You know, employees and leaders can come together around this idea that everyone really actually wants fulfilling work. We also, in this study, Jared, asked leaders what they thought the new skills would be that people would need in this new AI future. And what are your thoughts on that?
JARED SPATARO: Yeah, I think there are some principles that apply that turn into skills. And the first one on my mind really starts with your posture during such a dynamic time. And what I mean by that is, you know, are you operating from a place of fear? You know, are you worried about it? Or are you operating from a place of curiosity? So one of the skills is that you should operate from a place of curiosity, not unbridled curiosity where you’re just going to try anything, but a place that allows you not to be so influenced by fear that you are missing an opportunity, that you’re overly cautious, that you are in denial. I do definitely speak to leaders who are like, Well, AI will never impact my industry because we have these requirements, it just won’t work. And I think to myself, very famous last words, you know, I would not bet against this big river coming towards us. So that’s one. I also think that curiosity isn’t just about the technology. It’s about, gosh, what can I learn about this moment? You know, what can I learn about what’s happening around me? Embracing learning as a skill to mastering the moment and figuring out how to take all the changes that are happening and use them to your advantage. That’s definitely a skill that’s on my mind. So it’s a funny thing. People expect the answer to that question to be, Well, you should learn prompt engineering and you should learn, you know, of course those things are super important. But I think we’ll adapt to that faster than we might recognize. It is much more, I think, about some of these bigger ideas of, no, you should recognize that this is an inflection point, and at inflection points, you have to be willing to set aside your old assumptions and reconsider the world anew. And some of those principles, I think, underlie leadership skills, especially that all of us are going to need.
COLETTE STALLBAUMER: Exactly. How do you embrace the change and lean into it?
JARED SPATARO: Yeah, exactly. Exactly. That does make me think a little bit about the rising generation of talent of all ages, but especially about kids. We both have kids, and I wonder what you are hearing and learning and seeing as your kids start using this new technology, this new AI technology. And what can you share with us?
COLETTE STALLBAUMER: Yeah, my kids are just a little bit younger than yours. Mine are in that tween-teen phase, you know, and my son is neurodiverse, and he’s very creative. He has all these creative ideas, but he actually has always struggled to get them out on paper. And so basic language arts class writing for him is really hard, not because he doesn’t have the creativity, he actually has—creativity abounds, but just getting his ideas out of his brain and into an actual story, in a Word doc, is hard for him, so he’s just starting to play around with it. And I’m so excited about what this can unlock for him because he can just use natural language. And I think for me also, it’s sort of a moment of, for the first time, being the ages they are, you know, my kids think I work on something really cool. So that’s kind of fun too. What about you?
JARED SPATARO: Yeah, I have four kids. They range in age from 25 to 17. They’re right in the demographic of people who are exploring this. And I think it’s wonderful. You know, I have a son who’s graduated from college and who is a programmer, computer programmer, and he’s awfully interested in what these AI assistants can do to improve his life as a programmer. So, you know, he’s right in the midst of investigating that. I have another son who recently was applying to a job and he sent me this wonderful cover letter for a job—‘Dad, look at this. I labored over it,’ and it was so good. I asked him, wait a second, did you get AI to help you write that? Then he said, you know, I did, but what do you think? I said, it’s fantastic. You clearly provided some good input, so good on you. And I just think that it has been amazing to me to see how quickly the rising generation can just embrace this technology.
COLETTE STALLBAUMER: So true how quickly they pick it up. So yeah, that’s a good optimistic note to end on. I know there’s a lot to be optimistic about as we move from AI on autopilot to AI as copilot. I think we’re both really excited to get these tools into the hands of customers and also do so in the right way.
JARED SPATARO: Well, thanks for taking the time to talk to me today, Colette. It was fun.
COLETTE STALLBAUMER: It was fun. Thanks so much. Have a great day.
MARY MELTON: Thank you again to Jared Spataro and Colette Stallbaumer. And that’s it for this episode of WorkLab , the podcast from Microsoft. Please subscribe and check back for the next episode, where I’ll be chatting with Wharton professor Ethan Mollick, who talks about why it’s urgent that leaders engage with AI. If you’ve got a question you’d like us to pose to leaders, drop us an email at [email protected], and check out the WorkLab digital publication, where you’ll find transcripts of all of our episodes, along with thoughtful stories that explore the ways we work today. You can find all of it at Microsoft.com/WorkLab. As for this podcast, read us, review us, and follow us wherever you listen, please. It helps us out a lot. The WorkLab podcast is a place for experts to share their insights and opinions. As students of the future of work, Microsoft values inputs from a diverse set of voices. That said, the opinions and findings of our guests are their own, and they may not necessarily reflect Microsoft’s own research or positions. WorkLab is produced by Microsoft with Godfrey Dadich Partners and Reasonable Volume. I’m your host, Mary Melton, and my co-host is Elise Hu. Sharon Kallander and Matthew Duncan produced this podcast. Jessica Voelker is the WorkLab editor. Thanks for listening.
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