Microsoft President Brad Smith has warned that the Trump administration’s immigration crackdown risks driving away the next generation of AI talent, potentially undermining the United States’ position in the global technology race.
Smith’s comments follow the administration’s decision last week to suspend Microsoft, Adobe, and other tech firms from a federal program that sponsors foreign workers for permanent residency. Vice President JD Vance accused Microsoft of abusing the Permanent Labor Certification (PERM) program by laying off American workers while hiring lower-paid foreign employees. However, Smith rejected these claims, stating that the narrative was misleading. He noted that most visa and green card applications involved existing employees rather than new hires, and that Microsoft had hired 9,200 American workers in its last fiscal year.
Smith also dismissed suggestions that foreign workers were paid less than their American counterparts, insisting that compensation followed the same system regardless of immigration status. His concerns come amid broader uncertainty for skilled foreign workers in the US, with certified H-1B applications falling 10% in the first nine months of fiscal year 2026 compared to the previous year, according to federal data analysed by Business Insider. However, applications for data scientists—critical for AI development—rose by 22.5%, highlighting continued demand for specialised talent.
Smith cited the economic contributions of immigrants as evidence of what America stands to lose. He pointed out that five of the six technology and science medal recipients recently honoured by President Donald Trump had immigrated to the US. The companies associated with these five individuals collectively represent more than a quarter of the S&P 500’s market value, he said, emphasising their impact on ordinary Americans’ retirement savings and pension funds.
‘Think about what those five individuals have done for the well-being, even the wealth and standard of living, of Americans across the country,’ Smith said. ‘Let’s not put that at risk.’ His warning underscores the potential long-term consequences of stricter immigration policies on the US tech sector’s ability to attract and retain global talent.
