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Microsoft CEO Satya Nadella gestures as he speaks while wearing glasses and a black sweater.

Microsoft CEO Satya Nadella says that AI agents should be treated just like human employees. Fabrice COFFRINI / AFP via Getty Images

Microsoft uses a lot of AI agents. To help manage them, it's starting to think of them like human employees.

CEO Satya Nadella said the software giant is figuring out what kinds of tools and policies it needs to oversee all the agents it's created. That includes giving agents specific permissions for what they can and cannot access within the company, as well as ways to audit their work, he said.

"You need to give them identities, you need to give them sandboxes, then you need to set policies to govern them," Nadella told Reid Hoffman in an episode of the "Possible Podcast" posted on Friday.

During the discussion, Hoffman also said that after 10 years, he'd be leaving Microsoft's board to return to what he called "founder mode."

While companies are spending vast sums to adopt AI, many are still figuring out how their AI agents will work with their human employees. Figuring out how to manage AI agents represents a particularly tough problem.

It's a challenge that Nadella himself has dealt with, he told Hoffman. The Microsoft CEO said that he often runs 100 AI coding agents at once, and guiding each through a chat interface is tough. "The cognitive load on me managing this is so high," he said.

Microsoft has created Agent 365, a suite of tools that includes Entra, its digital identity and network access product, as well as Purview, which the company uses to label data AI agents create, he said.

"I think security, containment, managability, and observability is the way we're going to have confidence around these agents," Nadella said.

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Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansionStarbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at abitter@businessinsider.com or via encrypted messaging app Signal at +1 (808) 854-4501.

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