Microsoft Corp at Barclays Global Technology Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Is that -- and how do you compare or contrast that to like, previous tech transformation where I'd like to move to the cloud, we have the Internet, et cetera, like this feels slightly different?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then that's actually a good segue into my first question for Craig. Like our industry, like financial services, we -- sorry, if I say that like historically not like first adopters, but like I see a big movement around AI. How do you feel about AI for us? Unidentified Company Representative That's right. So look, I think we'd all agree the opportunity is quite significant, and virtually everything about AI is changing at pace. When I reflect on some of the key trends, and probably reflecting on the more recent influence of generative AI, five things come to mind. Firstly, I think you're starting to see the shift from experimentation into operationalization, slower than, in fact, what we might have anticipated, a little bit to Judson's point. But AI is starting to change roles and workflows in a really fundamental way. Take your customer service agent as an example, who now has real-time expert support guiding them through a call, summarizing the results of that call, assessing their development needs throughout that call, and then in a position to create personalized development content. That's not augmentation. It's a shift in the way work is happening, and it's a shift in how LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 4:05PM, MSFT.OQ - Microsoft Corp at Barclays Global Technology Conference capability is being developed. And you're starting to see that pattern across operations, across technology, across risk management. I think the second thing that you see happening, Raimo, is this shift from AI use in back office to the point of customer interface, from human in the loop to more autonomous workflows. And the significance of that shift is that it elevates the importance of governance. And by that, I don't mean just guardrails. I mean, understanding the role of each agent in the organization, be it human or AI, understanding their permissions, understanding the decisions they make, where you need to have oversight. And I think the organizations that get that right will establish autonomy with accountability, and within financial services, that's going to be key. I think the third thing that I see, and Judson touched on this, is whilst we often talk about AI, the real battleground is, in fact, data. Yes, of course, data fuels AI, but, too often, that data is not accessible, not of the right quality, not structured in the way to support real-time decisions. And I think most organizations are discovering the same fundamental truth. and that is you cannot scale AI while your data is trapped in silos, while you can't link activity across the full customer lifecycle, and while you don't have the lineage and controls in your data to have trust in that data. So while AI often gets the headlines, actually it's in data that I think real advantage will be created. Then I think you're seeing infrastructure being recreated. I think we all understand that to use AI at scale, yes, I need access to powerful models across multiple clouds; yes, I need increased compute density; yes, I need much greater power capacity, but I think the really important shift is in resilience. That as AI, in particular, agents and autonomous agents become more integral to critical workflows in organizations like financial institutions, the expectations on resilience will actually raise quite sharply. And I think that's going to have a profound impact across the entire stack, from networks to multi-cloud infrastructure to data platforms to APIs. And I think you're going to see much greater focus come onto this question of resilient AI provisioning within organizations. And then, finally, I think, AI is emerging as much as a threat as it is an opportunity. You think about those traditional cyber exploits, identifying vulnerabilities, polling of systems, creating malware, all of that can be executed now at a scale and pace that just wasn't attainable before. But it's probably the new exploits that are emerging or the new opportunities for exploits that are emerging that are most concerning. Think of a massive disinformation campaign executed across multiple social platforms, a vast target audience using deepfakes, executed almost instantly. That's a very different type of threat that we now need to begin to mitigate and arguably probably one of the more important of those trends.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah, perfect. And then Craig, if you think about it, on the Barclays side, there's so many potential things that you -- that AI could touch. How do you think about our journey? How do you prioritize about that? Unidentified Company Representative Yeah. So look, I think we were quite early into generative AI, largely off the back of, I think, the investments we've made across infrastructure, data, security, those foundations. And if I wind forward to where we are today, it's emerging out of what you might want to think of as the creative chaos phase, lots of experimentation, rapid learning, uneven value. But I think through that, a level of insight around where the opportunities are and how we need to go about executing against those opportunities, three areas that I think are priorities. The first, and Judson touched on this, is process transformation. And I tend to think of generative AI, in particular, as almost

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And Judson, from your customer conversations, I'm sure you're getting that as well. How do I think about the return of all these adopting this innovation, et cetera? Like, what's the conversation like? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 4:05PM, MSFT.OQ - Microsoft Corp at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah. And talk about trust, Craig, when we made the decision to roll out Copilot, to me, that was probably the single most project I've seen in Barclays since I've been here, and that's many years -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 4:05PM, MSFT.OQ - Microsoft Corp at Barclays Global Technology Conference Unidentified Company Representative Aided by my friend to the left here.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Judson, is it -- are we like a typical customer there? And then the other thing to add to that one is like, it does feel like the Copilot initially was seen as like, okay, ask a question and do something more, but now it feels much, much broader, and I'm only now realizing, okay, this is actually the gateway to everything. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 4:05PM, MSFT.OQ - Microsoft Corp at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah, and then last question for me, and then I have to let you go. Time flew by here quickly. If you look at the AI potential that you see out there, how do you think about adoption curves, but also the next steps that are coming out of that? It's more like we saw a Copilot, but what's the stuff that we are not thinking about at the moment?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah, Craig, for you, same question. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 4:05PM, MSFT.OQ - Microsoft Corp at Barclays Global Technology Conference Unidentified Company Representative Yeah, so look, I think it's redefining what digital transformation means for organizations like ours and increasing its urgency. It is a uniquely powerful capability that changes everything. It changes how we think about designing, personalized intelligent digital experiences. It changes how we think about creating autonomous workflows. It changes how we think about modernizing our technology. And I think it's both distinctive but also new. So there's a a window of opportunity at the moment to differentiate. And I don't think anyone can afford to be left behind, which is why you see the greater urgency. But I think it requires some really important shifts. Judson called out the one that I think is absolutely right, which is this frontier transformation. It's the -- hey look, pick three or four key journeys, three or four end-to-end processes, go deep, not experimentation, real transformation. And in that, solve not just with AI, but the integrated capability of digital data and AI, because the three in combination are far greater in capability. Then I think this issue of just preparing the organization for adoption. The technology is ready. The question is, is the organization ready? And I think that's a different question. It comes down to how you get the technology in the hands of people, how you create the right climate, the right mindset, how you start to educate leaders to manage teams that are now hybrid teams of agents and individuals. and then this question of just getting the foundations right. Getting infrastructure right, getting data right, getting security right, none of that stuff is glamorous but, ultimately, it will set apart those that actually pilot AI and those that really scale the capability and I think they're critical.