As AI reshapes work, Microsoft and UW are expanding partnerships for training, research — and the growing job gap.

The University of Washington and Microsoft are deepening their partnership with a new effort aimed at preparing Washington citizens for an AI-driven economy.

UW President Robert J. Jones and Microsoft President Brad Smith announced the expanded partnership Tuesday during an event at UW’s Paul G. Allen School of Computer Science & Engineering. The program is designed to increase the UW’s access to advanced AI computing, expand student training and research opportunities, and develop public AI literacy programs.

“The first era of computing is over. The new era of computing has begun,” Smith said. “We need to build a foundation for economic success in this state, and a lot of that will involve the University of Washington.”

The expansion builds on decades of UW support from Microsoft, including a total of approximately $165 million in scholarships and investments. Asked how to account for the announcement beyond building on past partnerships, Smith said Microsoft is “putting many millions of dollars in additional computing to be provided to students and faculty,” through a combination of dedicated and reduced resources.

The announcement comes amid two notable trends.

The Partnership for Learning predicts about 1.5 million job openings by 2032 in Washington state – 640,000 new jobs and 910,000 vacancies associated with retirees. Up to 75% of those roles are expected to require education or training beyond high school, and the group estimates that Washington state could see nearly 600,000 certified workers this decade if current trends continue.

Jones called it an important moment. “We must invest in AI readiness for our students, employees, and the entire state,” he said.

Jones, who became the UW’s 34th president in August, said only about 40 percent of Washington high school graduates complete a college degree within seven years. “We have a real problem here that needs to be solved … it’s seriously jeopardizing the economic health of the state of Washington by not having the skilled workforce and training and education that will add to the prosperity of the state.”

Then there’s the AI ​​boom and the uncomfortable question about the future of work.

The World Economic Forum last year reported that 40% of employers expect to reduce their workforce when AI can automate tasks. Anthropic CEO Dario Amodei said last month that AI will lead to “extraordinarily painful” changes in the labor market compared to previous technologies.

Jones acknowledged that AI will definitely change some jobs, but emphasized that it will also make many roles more successful and create new types of opportunities, including for people who might not go on to a college degree.

He said universities like the UW, by partnering with companies like Microsoft, can help workers and students deal with this uncertainty and help them build new skills.

“We can’t just bury our heads in the sand and say sorry [is] me,” said Jones.” “We have to be able to embrace it and look at how AI can improve our ability to serve people better no matter where they are in life, and prepare them for jobs that don’t even exist today.”

Smith described AI as “the latest wave of technology that will change work,” saying it will eliminate some jobs and create many new ones. “It doesn’t mean we should worry less about what might go wrong,” he said. “But we have to start focusing more on how we can help things go smoothly.”

He added: “The biggest problem right now with the conversation about AI and jobs is that it’s woefully incomplete. People – especially some people in the tech world – spend all their time talking only about what AI can do better than humans. But they don’t spend their time talking about what AI can help people do better than what they can do today.”

Partnerships are also designed as a public-private playbook to keep the district competitive — and as a reminder to state lawmakers about the connection between higher education funding and workforce outcomes. In a press release, Smith urged policymakers to avoid cuts to “fundamental state funding” that would make college more unaffordable. The Legislature is currently debating how to balance the federal budget.

Jones said about 71% of in-state UW students already graduate debt-free, and he wants to push that to 75% or 80% with help from partners and policymakers.

Here’s everything included in the extended partnership:

• Advanced computing access for faculty, researchers and students for AI training, testing, research and instruction, and Microsoft is donating Azure computing credits to help accelerate the development of UW’s research cloud platform.
• A new effort to connect UW faculty, visiting professors and students with “real-world research opportunities” at Microsoft through a research marketplace supported by Microsoft’s AI for Good Lab, and 10 additional graduate student positions per year (eight through Microsoft Research and two through AI for Good Lab).
• A new career for undergraduates focuses on critical thinking, digital citizenship and shaping how emerging technologies serve communities and democracy.
• Partnering with UW Continuum College — which serves more than 50,000 students annually in about 400 programs — to develop programs aimed at helping Washingtonians navigate AI-related workforce changes, including courses and learning methods focused on “work hardening” and changing job demands.
• A new collaboration launched this fall at Microsoft’s Redmond campus, described as an effort to “reimagine” how universities and industry work together. The UW and Microsoft say it will combine course development and learning experiences for Microsoft employees dealing with AI-driven change, while allowing UW students to study alongside industry professionals as part of their academic experience. The organizations said more information will be available later this year.

Smith said he would “like to see” the research market and internships create “1,000 more job opportunities” in the next year.

For Jones, the announcement is in line with a broader agenda that includes creating “great partnerships” with businesses and communities. He said the UW is “blessed with proximity” to companies like Microsoft and sits “in the heart of one of the most innovative cities in the world.”

“This is not just some dream,” he said. “This is the strategic vision that is needed to help move this city, this state, and I would say the entire region — because the UW in partnership with companies like Microsoft is shaping the entire region, and in many ways influencing the entire country, if not the world.”

Speaking at the building named after the Microsoft co-founder, Smith pointed to the continuation of a long line of Seattle technology. “Microsoft was first founded as a company in Albuquerque, New Mexico – but it was born on this campus,” he said, referring to Bill Gates and Paul Allen discussing university computers as high school students – a key step in the journey that led them to launch Microsoft.

Last year Microsoft launched Microsoft Elevate Washington, a new initiative that will provide free access to AI-powered software and training to all 295 public school districts and 34 community and technical colleges across Washington state. The program is part of Microsoft Elevate, the company’s $4 billion, five-year commitment to support schools and nonprofits with AI tools and training that was announced in July.