Microsoft's Satya Nadella slams company exec for outlining plan to ‘make people addicted' to Scout AI tool

A leaked internal memo revealing a plan to “make people addicted” to Microsoft’s new AI assistant Scout prompted a public rebuke from CEO Satya Nadella. Nadella’s message — shared with roughly 50 senior engineers and linked to reporting by 404 Media — rejects addiction-focused product design and emphasizes AI should empower users and economic growth. Scout, unveiled at Microsoft Build and described as an “always-on personal agent” that schedules and coordinates work, is central to Microsoft’s AI strategy and revenue roadmap for productivity software. The episode raises reputational and regulatory risks at a sensitive moment as tech firms face scrutiny over AI harms (notably recent lawsuits against Meta). For investors, the immediate impact is reputational rather than operational: Nadella’s quick distancing may limit downside, but renewed regulatory attention and user-trust concerns could influence adoption timelines and long-term monetization of Microsoft’s AI offerings.