When you think back on 2023, how will you remember it?

For me, this will always be the year I became a grandparent. It will be the year I spent a lot of precious time with loved ones—whether on the pickleball court or over a rousing game of Settlers of Catan. And 2023 marked the first time I used artificial intelligence for work and other serious reasons, not just to mess around and create parody song lyrics for my friends.

This year gave us a glimpse of how AI will shape the future, and as 2023 comes to a close, I’m thinking more than ever about the world today’s young people will inherit. In last year’s letter, I wrote about how the prospect of becoming a grandparent made me reflect on the world my granddaughter will be born into. Now I’m thinking more about the world she will inherit and what it will be like decades from now, when her generation is in charge.

I can begin to picture it: the tools she will use, the ways she will stay in touch with her loved ones, the problems these innovations will help solve. We now have a better sense of what types of jobs AI will be able to do by itself and which ones it will serve as a copilot for. And it’s clearer than ever how AI can be used to improve access to education, mental health, and more. It motivates me to make sure this technology helps reduce—and doesn’t contribute to—the awful inequities we see around the world. I've always been a firm believer in the power of innovation to offer every child an equal chance to survive and thrive. AI is no exception.

The early years of a new age are often marked by lots of changes. If you are old enough to remember, think back to the beginning of the internet. At first, you probably didn’t know many people who were using it. But it became more common over time until, one day, you realized most people had email addresses, bought things online, and used search engines to answer their questions.

We are just at the beginning of this transition right now. This is an exciting and confusing time, and if you haven’t figured out how to make the best use of AI yet, you are not alone. I thought I would use AI tools for the foundation’s strategy reviews this year, which require reading hundreds of pages of briefing materials that an AI could accurately summarize for me. But old habits are hard to break, and I ended up preparing for them the same way I always do.

Of course, AI is far from the only defining feature of 2023. Millions continue to experience unbearable grief as a result of Russia’s war on Ukraine and in the aftermath of the war in Ethiopia. My heart is broken for the continued suffering of Israelis and Palestinians, as well as for the people of Sudan. At the same time, more people are being forced to endure hardship as a result of more frequent extreme weather events caused by climate change. And families around the world continue to be hit hard by rising inflation and slow economic growth.

There’s no question these are challenging times, but I remain optimistic about the future. The speed of innovation has never been faster. We’re making big strides on tough problems—like Alzheimer’s, obesity, and sickle cell disease—that will improve the lives of millions of people. My friend the late Hans Rosling used to say that “things can be bad and getting better.” It’s a good reminder that progress is not only possible but happening every day.