Microsoft Urges Employees to Embrace In-House AI — Performance Reviews May Reflect Usage

Microsoft is urging managers to evaluate employees based on their use of AI tools, as stated by Julia Liuson, head of developer tools. She emphasized that AI is now essential for all roles. Some teams may introduce formal metrics for AI usage in performance reviews. This initiative aims to boost the adoption of Microsoft’s Copilot AI services amid increasing competition in the AI coding market. By integrating AI usage into performance evaluations, Microsoft seeks to enhance its workforce's capabilities and maintain a competitive edge.

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.