Microsoft has implemented a new internal policy requiring employees to use artificial intelligence tools in their daily work, marking a significant shift in how the tech giant approaches AI adoption within its workforce.
In June 2025, Julia Liuson, president of Microsoft’s Developer Division, sent an internal email to managers outlining the company’s new stance on AI usage. The memo made clear that AI adoption is no longer optional for Microsoft employees.
“AI is now a fundamental part of how we work,” Liuson wrote. “Just like collaboration, data-driven thinking, and effective communication, using AI is no longer optional — it’s core to every role and every level”.
Performance Review Integration
The policy goes beyond simple encouragement, with Microsoft considering formal metrics tied to AI usage in employee performance evaluations:
• Managers are instructed to evaluate employee performance based on their use of internal AI tools like GitHub Copilot
• Performance reviews may include AI usage as a formal metric starting in the next fiscal year
• Holistic evaluation requires managers to consider AI usage as part of their “holistic reflections on an individual’s performance and impact.”
Some teams are already considering introducing formal metrics tied to AI use in upcoming performance reviews, according to sources familiar with the matter.
Addressing Low Internal Adoption
The mandate appears to be Microsoft’s response to lagging internal adoption of its Copilot AI services. The company wants to:
• Increase AI usage broadly across the organization
• Ensure employees building AI products have a better understanding of the tools they’re developing
• Drive adoption of internal AI tools, including coding assistants, data analytics, and workflow automation
Potential Consequences
Employees who don’t embrace AI tools could face significant career implications:
• Smaller bonuses and reduced financial rewards
• Less favorable career outcomes and diminished progression opportunities
• Performance review impacts that could affect overall job security
Context of Broader Changes
This AI mandate comes amid significant organisational changes at Microsoft:
• Layoffs: Approximately 6,000 job cuts in May 2025 targeted mainly technical and product teams
• Sales restructuring: Additional job cuts in sales teams reported in June
• Leadership changes: Chief Commercial Officer Judson Althoff took a two-month sabbatical
Industry Trend
Microsoft joins other major companies implementing similar AI mandates. Thomson Reuters has told employees that staff who don’t adopt AI skills “will be left behind” and won’t have long-term career prospects at the firm.
The move reflects a broader industry trend where companies are moving from encouraging AI adoption to making it a mandatory part of job performance, signaling that AI literacy is becoming as essential as traditional workplace skills like communication and collaboration.
Three other well-known tech companies have also made this bold AI move.
- Shopify
- Duolingo
- Box
What these policies have in common
• Performance stakes: AI usage is formally tied to reviews or promotions, not just encouraged.
• Hiring constraints: Managers must justify new headcount by proving AI can’t handle the workload.
• Culture shift: Each firm positions AI literacy alongside fundamental skills such as collaboration or coding.
Why it matters
These moves signal that AI literacy is quickly moving from nice-to-have to must-have across multiple industries, not just at Microsoft. Employees in tech, education, and enterprise software now face explicit requirements to master internal AI tools or risk slower career progression.
Will you make AI use mandatory for your staff? How would you feel if your employer introduced such a policy?
About the Podcast Host
Joanne Sweeney is a specialist in public-sector marketing and digital communications. She’s the author of Public Sector Marketing Pro and the creator of the Professional Diploma in AI for Public Sector Marketing. With years of experience in training, consulting, and advocating for digital transformation, Joanne provides insight and guidance for government agencies navigating the digital landscape. She is also the host of the award-winning Public Sector Marketing Show podcast.
