As an example of how Microsoft wants to build software that can predict what you want, the company showed a an experimental project that automatically turns a home thermostat on and off.

The thermostat and software keeps track of when people come and go using room monitors and key chain radio trackers. Microsoft is testing it in a few homes in the U.S. and the U.K.

Based on the tracking data, the thermostat automatically turns on the heater right before people get home and turns it off as they leave. It can also keep the heater on if it detects someone is in the house at unusual times.

"It looks back at the most recent days and evaluates based on comfort and cost," said A.J. Brush, a Microsoft researcher in Redmond. "The good news is it does as well as people who program their thermostats." She said it could also potentially adjust to each resident's preference for warmer and cooler temperatures.

"The actual objective is not home heating. It's predictive analytics," said Peter Lee, managing director of Microsoft Research in Redmond. Microsoft Chief Research and Strategy Officer Craig Mundie talks about "getting rid of the idea of operating a computer," Lee said. "That's what we believe will continue."

Researcher Brush has also developed a Windows Phone app that learns your driving habits and recommends the fastest path to work.