If the United States aims to lead in artificial intelligence, expelling top global engineers may not be the best approach.

Microsoft President Brad Smith warned that the Trump administration's immigration restrictions could push the next wave of AI experts to leave the country.

"We should all be concerned about sending signals that direct the most skilled upcoming AI software engineers toward other nations instead of the United States," Smith stated during an appearance on Politico's "The Decoded Podcast" aired on Thursday.

The remarks follow the administration's decision last week to bar Microsoft, Adobe, and other tech firms from a federal initiative that supports foreign workers seeking permanent residency.

Vice President JD Vance charged that Microsoft misused the Permanent Labor Certification program by cutting American staff while bringing in lower-paid overseas employees.

Smith, recently tasked with overseeing Microsoft's communications, countered that the claims distorted the company's actual recruitment patterns.

"The notion that Microsoft swapped 6,000 laid-off staff for 9,000 foreign nationals was simply inaccurate," he noted.

Smith explained that most visa and green card filings involved current employees rather than fresh recruits, and that the firm added 9,200 US workers during its most recent fiscal year.

"That detail was omitted from the discussion," he added.

He also dismissed ideas that Microsoft compensates foreign staff at lower rates, noting that pay follows the same structure for all employees irrespective of immigration background.

The American dream, on hold

The disagreement arises as skilled foreign workers face increasing instability in the US.

Reports indicate that evolving immigration rules have led some international talent to consider roles in nations such as the UK, Germany, and Canada.

Federal data analysis showed certified H-1B applications dropped 10 percent in the first nine months of fiscal year 2026 versus the prior year, though data scientist filings climbed 22.5 percent, underscoring ongoing needs in AI fields.

On the podcast, Smith highlighted immigrants' economic impact to illustrate potential losses for America.

He pointed out that five of the six technology and science medal honorees recently recognized by President Donald Trump had moved to the United States.

Smith noted that firms tied to those five individuals account for over a quarter of the S&P 500's total market value.

Their work supports not only tech professionals but everyday Americans whose savings and pensions are tied to those companies.

"Consider what those five people have contributed to the well-being, wealth, and living standards of Americans nationwide," Smith said.

"We should avoid endangering that progress."