Microsoft mandates AI use by employees whilst prospect of job cuts looms

“Using AI is no longer optional”

Microsoft has tightened its stance on the use of AI by its employees, telling staff that AI adoption is now a core expectation.

Microsoft has instructed staff to utilise AI in their day-to-day work, according to a report in Business Insider.

In an internal email to employees, Julia Liuson, president of the Developer Division, has reportedly said: “AI is now a fundamental part of how we work. Just like collaboration, data-driven thinking, and effective communication, using AI is no longer optional — it's core to every role and every level.”

Any Microsoft employees reluctant to engage with AI tooling including coding assistants, data analytics and workflow automation will no doubt be aware that managers have reportedly been asked to consider the extent of AI use in the staff appraisal process.

Citing two sources familiar with the matter, the Business Insider report reveals that some teams are considering introducing formal metrics tied to AI use in upcoming performance reviews.

Mandatory AI at Microsoft will be viewed within the context of wide-ranging job cuts. A round of approximately 6000 layoffs in May targeted mainly technical and product teams, whilst reports surfacing in June suggested thousands of job cuts in sales teams.

This morning saw the announcement that Microsoft CCO, Judson Althoff, is to take a two-month sabbatical, returning in September.

Adding to pressure is a stream of announcements from competitors such as Salesforce and Amazon, all claiming that AI is already taking on increasing proportions of internal workflows.

Low adoption of Microsoft’s AI services by its own staff creates some embarrassing challenges for sales and marketing teams. These challenges are being made more acute by reports that many developers at Microsoft and elsewhere prefer third-party coding assistants like Cursor and Replit as opposed to Copilot.

There is also evidence of an increasingly strained relationship between Microsoft and OpenAI.

Microsoft holds a $14 billion stake in OpenAI and is therefore heavily invested on OpenAI’s transition into a for-profit venture. Microsoft has reportedly been reluctant to approve that transition which OpenAI is distinctly unhappy about.

According to Sam Altman, who spoke about the relationship recently:

“Obviously in any deep partnership, there are points of tension and we certainly have those. But on the whole, it's been like really wonderfully good for both companies."

A question also remains concerning OpenAI’s pending acquisition of AI coding startup Windsurf for $3 billion. OpenAI is unhappy with the prospect of Microsoft insisting on full access to Windsurf’s intellectual property post-deal, and Microsoft is unlikely to be relaxed about the prospect of OpenAI investing in and developing another competitor to Copilot.