Microsoft Ties Employee Performance Reviews to AI Tool Usage, Sparking Debate

'AI is no longer optional': Microsoft is allegedly pressuring employees to use AI tools through manager evaluations

Microsoft's employees might be required to use AI, according to leaked memo. First reported by Business Insider, a purported internal memo from Julia Liuson, the Corporate Vice President of Microsoft's Developer Division, shows that managers are now being asked to evaluate employees based on their use of AI tools. An employee review metric for measuring AI use is reportedly under consideration according to Business Insider as well. Liuson's memo made her expectations here clear: "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." To be fair, there's some logic to this decision -- the people developing Microsoft's AI tools and services should probably be using them to get a better idea of the user experience. At the same time, it's hard not to read this as Microsoft resorting to the stick of employee reviews to get them to actually use these tools, which have struggled to gain adoption with everyday users and faced backlash over Copilot's controversial Recall feature, as well as the usual AI inaccuracies and "hallucinations." Recall uses AI to "remember" your activity on your computer by taking screenshots every few seconds so you can use Copilot to find websites or files you previously viewed. Microsoft had to backpedal on the feature when it was first announced due to an uproar over security concerns. While the company has attempted to address those concerns leading up to Recall's long-delayed beta release, the feature is still tarred with these associations, and I find it hard to trust Microsoft on its claims about Copilot's offline, airtight security. Even for people who already use AI on a regular basis, Copilot probably isn't their first choice. As of 2025, ChatGPT has some 400 million active users while Copilot only has 33 million. Windows users haven't warmed up much to Copilot, either⁠ -- often calling it bloatware, with one user even saying, "The way that Microsoft is forcing AI in our PCs even though 90% of its users don't want AI is just annoying." Unfortunately for Microsoft, comments like this aren't uncommon, and a large part of the apathy toward Copilot is over frustration with how Microsoft has been installing it by default in Windows 11, making it seem like the AI is being forced on everyone.

AI might take your job, but ignoring it could too: Microsoft links performance reviews to AI usage

In what appears to be a corporate line in the sand, Microsoft is moving beyond AI evangelism and into enforcement. According to an internal email reported by Business Insider, the tech giant has begun directing managers to factor employees' AI usage into their performance evaluations -- a decision that marks a striking cultural shift from adoption to obligation. Julia Liuson, president of Microsoft's Developer Division, which oversees tools like GitHub Copilot, informed team leaders that artificial intelligence is no longer a choice. "AI is now a fundamental part of how we work," she wrote in a recent internal memo. "Just like collaboration, data-driven thinking, and effective communication, using AI is no longer optional -- it's core to every role and every level." The message? Embrace AI or risk falling behind. In some Microsoft teams, performance reviews for the next fiscal year may include formal metrics that assess how well employees are integrating AI into their workflow. This move is reportedly motivated by what Microsoft sees as lagging internal adoption of its own Copilot tools -- even among employees tasked with building them. A source familiar with the matter told Business Insider that the aim is to not only drive broader usage across the company but also ensure that those developing AI tools like GitHub Copilot genuinely understand how they're being used in practice. In a fiercely competitive landscape, where rivals like Cursor are gaining ground, Microsoft is doubling down on internal accountability. Interestingly, while Microsoft strongly promotes the use of its proprietary AI tools, it still permits employees to experiment with some external AI assistants -- provided they meet company security protocols. Replit, a competing coding tool, is one such example. Microsoft's AI push comes amid broader questions about how much we should rely on artificial intelligence in the first place. In a recent podcast interview, OpenAI CEO Sam Altman made a candid admission: "People have a very high degree of trust in ChatGPT, which is interesting because AI hallucinates. It should be the tech that you don't trust that much." Altman's point wasn't lost on industry watchers. While AI tools can streamline coding, boost productivity, and assist in communication, they are far from infallible. Hallucinations -- where the AI confidently generates false or misleading information -- remain a well-documented flaw. And yet, the corporate world is being nudged toward full-blown dependency. So where does that leave employees who may be wary of the risks? It appears caution is no longer an acceptable excuse. In the Microsoft ecosystem, the road to good performance now runs directly through responsible AI usage. If there's one thing this shift confirms, it's that AI in the workplace is no longer a novelty. What once sparked curiosity and experimentation has now become a professional requirement. Even tech visionaries like Peter Thiel have framed AI not as an ideal future but as a necessary one. In a recent appearance on the New York Times podcast Interesting Times, Thiel noted, "AI might be enough to create some great companies, but I'm not sure it's enough to end the stagnation." Despite his reservations, Thiel conceded that AI is the only visible force trying to disrupt an otherwise innovation-starved landscape. The question now is whether this disruption will bring about genuine transformation -- or merely a new kind of compliance culture. Whether seen as a lifeboat from stagnation or a leash of digital conformity, Microsoft's policy signals a new age of workplace expectations. AI isn't just a tool anymore. It's a metric, a performance benchmark, and potentially, a career gatekeeper. In this AI-centric era, one thing is certain: If artificial intelligence doesn't replace your job, your failure to embrace it just might.

Microsoft Urges Employees to Embrace In-House AI -- Performance Reviews May Reflect Usage - Microsoft (NASDAQ:MSFT)

Microsoft Corporation MSFT is now encouraging managers to evaluate employees based on their use of Artificial Intelligence (AI) tools. What Happened: Julia Liuson, who heads the division of Microsoft responsible for developer tools like GitHub Copilot, has directed managers to consider the use of internal AI tools as a key factor in assessing employee performance. In her email, Liuson emphasized the importance of AI in the company's operations, stating, "AI is now a fundamental part of how we work. Using AI is no longer optional -- it's core to every role and every level." Performance expectations at Microsoft vary across teams, and some are considering incorporating a formal metric related to the use of internal AI tools in performance evaluations for the upcoming fiscal year, as disclosed by an anonymous insider. "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," Liuson wrote in the email. Also Read: Leaked Data: Huge Pay Gap In Favor Of AI Engineers At Microsoft This initiative is part of Microsoft's strategy to address what it sees as a slow internal adoption of its Copilot AI services. The tech giant's goal is to increase usage across the board and ensure that those developing these products have a thorough understanding of the tools. The decision comes at a time when competition in the AI coding services market is intensifying. Cursor recently overtook GitHub Copilot in a significant segment of the developer market, as noted by Barclays. This competitive landscape is also influencing Microsoft's renegotiation of its vital partnership with OpenAI. Why It Matters: Microsoft's new mandate underscores the growing importance of AI in the tech industry. By making AI usage a performance metric, the company is not only promoting the adoption of its own AI tools but also preparing its workforce for an increasingly AI-driven future. This move could potentially give Microsoft an edge in the competitive AI coding services market. Read Next Major Overhaul Coming For Microsoft Authenticator: Users Advised To Backup Passwords Image: Shutterstock MSFTMicrosoft Corp$495.82-0.33%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum71.59Growth50.05Quality33.67Value13.24Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs