'AI is no longer optional': Microsoft makes AI usage mandatory, ties it to performance reviews

Microsoft is turning up the pressure on its workforce to embrace artificial intelligence, whether they want to or not. According to internal communications obtained by Business Insider, the tech giant has begun directing managers to evaluate employees based on how frequently and effectively they use the company’s own AI tools.

An internal memo from Julia Liuson, Corporate Vice President of the Developer Division, makes the message clear: using AI is no longer a choice. “AI is now a fundamental part of how we work,” the memo reads. “Just like collaboration, data-driven thinking, and effective communication, using AI is no longer optional — it’s core to every role and every level.”

This shift signals a dramatic change in how performance is measured at Microsoft. Teams are reportedly weighing formal metrics to track AI usage in employee reviews, as executives push to improve adoption rates of products like Microsoft Copilot—tools that, despite heavy promotion, have struggled to gain internal traction.

The policy appears targeted in part at Microsoft’s own developers, with leadership insisting that those building AI products must also use them daily. But the timing also reflects mounting frustration within the company: Copilot is facing stiff competition from rival AI coding tools like Cursor, and recent features such as Recall have sparked user backlash over privacy concerns.

While Microsoft frames the move as a natural evolution in a company that claims to be “all-in on AI,” critics see a more urgent motive: forcing adoption through performance reviews rather than winning hearts and minds with utility.

In an industry already grappling with the side effects of generative AI, from hallucinations to mistrust, Microsoft’s new mandate raises tough questions. Is using AI now a skill, or just a checkbox to keep your job?