
Scott Guthrie, the executive vice president in charge of Microsoft's Azure business, will lead that group.
The company will now be split into "Experiences & Devices", "Cloud + AI Platform", and the existing branch of Microsoft Research.
He will transition out of Microsoft in the coming months, according to Nadella.
With Windows 10, the OS should automatically activate as the license is usually digital and doesn't require a product key.
As part of this shakeup, Windows team leader, Terry Myerson, will be leaving Microsoft. Belfiore will continue to be focused on Windows development, particularly across form factors.
Myerson leaves after 21 years, and nearly three years in what some have called the hardest job at Microsoft - trying to build a device business after the company exited the phone handset business, while charting the future of Windows in a world that is moving away from the client-computing model that it led.
Microsoft is creating a separate division dubbed "Experiences & Devices" that will look after Windows client releases that you see on laptops and devices, first-party apps, Office 365, and Surface hardware.
The group "will ensure our AI platform and experience efforts are deeply grounded within Microsoft's core values and principles and benefit the broader society", Nadella wrote.
Windows and Azure platforms both are being combined and will be led by Jason Zander. Harry Shum was named as the head of the research unit, which will focus on developing and fine-tuning new AI products. Alex Kipman was assigned to lead a new team called "AI Perception & Mixed Reality (MR)". Putting those teams, which face fierce competition from the likes of Amazon (amzn), Google (googl), and Apple (aapl), together with Azure could help them catch on as cloud services. Most of the company's other AI tools will move under the wing of a new AI Cognitive Services & Platform group.
Business AI: The Customer Service, Marketing and Sales Insights teams, previously led by Gurdeep Singh Pall, will join James Phillips' Business Applications Group.
The committee will effectively act as a social-responsibility watchdog overseeing Microsoft's AI efforts.
"Among other steps, we are investing in strategies and tools for detecting and addressing bias in AI systems and implementing new requirements established by the GDPR", Nadella said of the new project. This expansion will allow you to "find past or future events by searching for the name, location, people included or words in the event body", Microsoft said in its blog post.
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