Microsoft CEO Satya Nadella has appointed Kathleen Hogan, the company's HR chief, as its new strategy chief to navigate the company's AI era. Hogan, who has been at Microsoft for over 20 years, will report directly to Nadella and be responsible for strategy and transformation. This move marks a significant change for the company, which hasn't had a dedicated strategy chief in quite some time.

Hogan's new role comes at a critical time for Microsoft, as the company is undergoing significant cultural changes and layoffs. In recent weeks, Microsoft employees have expressed concerns about the lack of transparency in the company's layoff process, which has been particularly painful. Hogan's experience in managing Microsoft's cultural changes over the past decade will be key to her success in her new role.

Nadella praised Hogan's ability to "interpret the outside" and "redefine the inside," suggesting that her new role will involve navigating the rapid changes brought about by AI and other technological advancements. Hogan's experience in transforming Microsoft's culture and managing the company's various priority changes will be essential in this new role.

The appointment of Hogan as strategy chief is also significant because it fills a gap in Microsoft's senior leadership team. Chris Young, the head of business development, strategy, and Microsoft's M12 fund, is leaving the company at the end of the month, and Hogan's promotion will fill the senior leadership team spot that is opening up.

Meanwhile, Microsoft is also making strides in its AI efforts, particularly in the gaming space. The company is set to launch an AI-powered Copilot for Gaming next month, which will be part of the Xbox mobile app. The feature is designed to be a second screen assistant or companion, and will provide users with tips and guidance during gameplay.

Microsoft is also exploring other AI-related features, including AI-powered summaries in Notepad, which are currently being tested by Windows Insiders. The company is also working on a new feature in Windows 11 that will help explain how less RAM or a weaker GPU might affect PC performance.

Despite the company's progress in AI, Microsoft is also facing regulatory scrutiny, with the FTC reportedly moving ahead with an antitrust probe into the company's AI work and licensing practices. This probe comes less than two years after the FTC's investigation into Microsoft's Activision Blizzard acquisition.

In conclusion, Microsoft's appointment of Kathleen Hogan as its new strategy chief marks a significant change for the company as it navigates its AI era. Hogan's experience in transforming Microsoft's culture and managing the company's various priority changes will be essential in her new role, and her appointment fills a gap in the company's senior leadership team. As Microsoft continues to make strides in AI, it will be important to watch how the company addresses regulatory scrutiny and other challenges in the months ahead.