Microsoft is pushing managers to rate employees on their use of AI tools internally. Some teams may add AI usage as a formal performance metric in reviews next fiscal year, sources tell Business Insider.
Julia Liuson, head of Microsoft’s developer tools division (which includes GitHub Copilot), emailed managers urging them to include AI adoption in employee evaluations.
"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."
Liuson added AI "should be part of your holistic reflections on an individual’s performance and impact."
The move aims to boost lagging internal adoption of Microsoft’s Copilot AI services, sources say. Microsoft wants broader use across the company and deeper familiarity among product teams.
Competition is heating up. Developer tool Cursor recently overtook GitHub Copilot in a key market segment, according to a Barclays note citing Ramp Business Spending data.
Microsoft also lets employees use some external AI tools that meet security standards, like coding assistant Replit.
AI competition is even complicating Microsoft’s key partnership with OpenAI. OpenAI is mulling buying Cursor rival Windsurf, but Microsoft’s current OpenAI deal could give it access to Windsurf’s intellectual property. Neither party wants that, a source says.
