Microsoft CEO Satya Nadella is warning against "token-maxing," throwing the most powerful AI models at every problem. Frontier models shouldn't be wasted on everyday tasks, he says. The marginal cost of productivity gains has to match the token cost. Still, Nadella admits, "I'm like a token-maxer too. So it is addictive."

Microsoft's CEO said workers should use the right AI model for the job as companies look for ways to control rising AI costs.

Microsoft CEO Satya Nadella urged employees to use AI more efficiently, warning against unnecessary reliance on costly advanced models.