Microsoft has issued a new internal directive instructing managers to factor employees’ AI usage into their performance evaluations.
The move, first reported by Business Insider and confirmed through internal communications, reflects Microsoft’s growing urgency to accelerate adoption of its own AI products, particularly Copilot, across its global workforce.
In an internal memo, Julia Liuson, President of Microsoft’s Developer Division, emphasized that “AI is now a fundamental part of how we work,” equating its importance with collaboration, data-driven thinking, and effective communication.
Microsoft Performance Reviews to Include AI Engagement Metrics
Managers have been directed to incorporate formal metrics assessing how effectively employees use AI tools in their daily workflows.
This includes not only frequency of use but also depth of integration into tasks and projects.
The policy is expected to be implemented across multiple teams during the upcoming fiscal year.
It will place particular emphasis on employees who are involved in developing AI products such as GitHub Copilot.
The internal push stems from concerns over lagging adoption rates of Microsoft’s own AI offerings, despite extensive promotion.
Some employees reportedly underutilize tools they help build, prompting leadership to enforce usage as a performance criterion.
Competition and Strategic Imperatives
Microsoft’s decision comes amid rising competition from external AI platforms such as Cursor and Replit, which have gained traction among developers.
Microsoft encourages employees to use its proprietary AI tools.
However, it also permits experimentation with secure third-party AI assistants, as long as they meet internal security protocols.
The company’s broader strategy includes positioning AI as a non-negotiable workplace skill, especially as rivals race to dominate the generative AI space.
By embedding AI usage into performance reviews, Microsoft aims to ensure its workforce remains aligned with its product roadmap and innovation goals.
Timing Amid Layoffs and Restructuring at Microsoft
The AI mandate coincides with ongoing restructuring efforts at Microsoft, including multiple rounds of layoffs in its gaming and Xbox divisions.
Reports suggest another wave of job cuts may occur in July 2025, adding pressure on employees to demonstrate adaptability and value through AI proficiency.
Since its $69 billion acquisition of Activision Blizzard in 2023, Microsoft has been streamlining operations to improve profitability.
The emphasis on AI usage is seen as part of this broader effort to enhance efficiency and accountability across teams.
Implications for Workplace Culture
This shift represents a cultural inflection point at Microsoft, where AI is no longer viewed as optional or experimental.
Instead, it is now embedded into the fabric of employee expectations and career progression.
Some critics argue that enforced AI usage may stifle creativity or lead to checkbox behavior.
However, Microsoft maintains that responsible and effective engagement with AI is essential to future-proof its workforce.
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