“AI Is No Longer Optional”: Microsoft Makes AI Usage Mandatory, Links It to Performance Reviews
In a big move that’s making headlines across the tech industry, Microsoft has officially declared that using artificial intelligence (AI) is no longer optional for employees. This internal p
olicy shift now connects AI usage directly to employee performance reviews, making it clear that those who don’t adapt may risk falling behind—or even face layoffs.
This bold decision comes amidst rising pressure on employees and increasing chatter about another round of layoffs in July. Microsoft is doubling down on its com
“AI Is No Longer Optional”: Microsoft Makes AI Usage Mandatory, Links It to Performance Reviews
mitment to artificial intelligence by expecting its workforce to do the same.
Microsoft Tells Employees — “Use AI or Fall Behind”
The message is loud and clear from the leadership: AI is not just a tool; it’s now part of the job. Internal communications reportedly show that Microsoft is urging every employee—from interns to top-level managers—to integrate AI tools into their daily tasks.
If you’re working at Microsoft and not using AI, you’re likely to get noticed—and not in a good way. AI engagement will be one of the key markers of productivity and adaptability during internal evaluations.
Why Microsoft Is Making AI Usage Compulsory
So why is Microsoft pushing this so hard? The answer lies in a few key areas:
- Productivity & Efficiency: AI tools like Copilot in Microsoft 365 can save hours of time in writing, summarizing, data analysis, and more. Microsoft wants its employees to work smarter, not harder.
- Staying Competitive: With Google, Amazon, and Meta all investing heavily in AI, Microsoft doesn’t want to be left behind. In fact, it wants to lead the global AI race.
- Internal Culture Shift: Microsoft believes that the workplace of the future will heavily depend on AI. Employees must be “AI-literate” to stay relevant within the company.
AI Tools That Microsoft Wants Employees to Use
Microsoft is not just telling people to use AI—they’re also offering the tools to do so. Some of the main AI-based platforms and features Microsoft employees are expected to use include:
- Copilot for Microsoft 365: This AI assistant is integrated into Word, Excel, PowerPoint, and Outlook. It helps with drafting documents, summarizing emails, and generating presentations.
- GitHub Copilot: For developers, this tool is already a favorite. It helps write and review code with natural language prompts.
- Azure AI Services: Employees working in cloud, analytics, and enterprise teams are expected to adopt Azure-based AI for more technical tasks.
- Power Platform AI Tools: For automating workflows and building low-code applications with embedded AI.
Training Made Mandatory Too
Microsoft is also investing heavily in AI training programs. It’s not just about using tools blindly; employees must show they understand how to get the best results from AI. Some teams have even made it compulsory to complete certain AI learning modules before quarterly reviews.
Performance Reviews to Now Include “AI Usage Metrics”
This is the real game-changer: Microsoft’s new performance review system will assess how effectively an employee uses AI in their job role. Managers are being asked to track AI tool engagement, and those metrics may impact:
- Promotions
- Bonuses
- Project selection
- Role suitability
- Layoff decisions (if applicable)
Employees who fail to incorporate AI into their workflow might be seen as less efficient or less innovative. In a competitive corporate environment, this can be a make-or-break factor.
Rumors of July Layoffs—A Wake-Up Call?
Microsoft has already conducted several rounds of layoffs over the last year. And now, according to insiders, more layoffs could be coming as early as July 2025.
While Microsoft hasn’t confirmed this publicly, the buzz inside the company suggests a restructuring of teams that fail to embrace AI at scale.
Many analysts believe that this new AI mandate is not just about productivity—it’s about filtering out those who resist technological change.
AI or Exit?
Some employees are even calling this the “AI or Exit” policy, as pressure builds. A mid-level manager told a publication (on condition of anonymity),
“Those who refuse to adapt will be left behind. It’s becoming clear that AI literacy is the new job security at Microsoft.”
Not all employees are happy with this top-down enforcement. Some feel that tying performance reviews so tightly to AI usage feels forced or unfair, especially for roles that may not benefit immediately from AI integration.
Concerns include:
- Privacy: Some worry about how their AI usage is being tracked.
- Creativity: Others fear that relying too much on AI can harm creative problem-solving.
- Job Pressure: With layoffs looming, some employees feel they’re being monitored more than mentored.
Still, others welcome the change. They see this as a chance to upskill, stay ahead of the curve, and ride the AI wave into better roles and opportunities.
Here’s a unique perspective not often highlighted: This AI push is not just about tools—it’s about culture transformation at scale.
What Microsoft is really trying to do is reshape employee mindset across all departments. It wants to build a workforce that’s not only AI-skilled but also AI-first.
That means:
- Replacing outdated workflows
- Reducing repetitive human tasks
- Prioritizing outcome-focused work driven by AI
This kind of cultural shift is not easy. It involves unlearning traditional work habits and adopting a whole new way of thinking.
If successful, Microsoft could become the first truly AI-native workforce at global scale—an example others will follow. But if mishandled, it could lead to morale issues and talent drain.
What Other Companies Can Learn from This Move
Microsoft’s AI mandate may set a blueprint for other corporations. Google, Amazon, Infosys, and even Tata Consultancy Services (TCS) are already exploring AI integration into employee evaluations.
This move may soon become the standard across IT and tech services, especially as generative AI proves its worth in productivity, cost-cutting, and innovation.
Adapt or Risk Being Left Behind
Microsoft’s decision to mandate AI usage is not just a company policy—it’s a clear signal of where the future of work is heading. Whether you’re a developer, manager, designer, or marketer, learning to use AI tools effectively is no longer optional.
As the tech giant evolves into an AI-first enterprise, its workforce is being asked to evolve too. Those who adapt may thrive in this new era. But those who resist? They might be forced to look elsewhere.
