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Microsoft Makes AI Usage Mandatory and Links It to Performance Reviews

Microsoft hopes that making AI use compulsory will boost Copilot adoption ahead of its next Xbox division layoffs.

Microsoft campus
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Overview

  • Microsoft has directed all employees to use its internal AI tools as a core part of their roles.
  • The company has instructed managers to factor AI tool usage into performance reviews, with some teams developing formal metrics for the upcoming fiscal year.
  • This mandate responds to weak internal adoption of Copilot, which has 33 million users compared to ChatGPT’s 400 million active users.
  • The move follows backlash over the Recall feature’s privacy concerns and aims to increase trust and familiarity with Microsoft’s AI offerings.
  • The policy rollout coincides with reports of a pending round of job cuts targeting thousands of positions in the Xbox division.