The New Offshoring: How AI Hollows Out Corporate Know-How

Microsoft's Satya Nadella warns that artificial intelligence poses a threat analogous to industrial offshoring—companies risk silently surrendering their proprietary knowledge to external AI models, a process that's progressive but irreversible. The real danger isn't individual job loss but the erosion of organizational expertise and what Nadella calls 'Token Capital,' the unique learning system a firm builds when integrating its workflows with AI. In the AI era, true competitive advantage lies not in access to powerful models, but in the learning ecosystems companies develop around them.