Microsoft Developer head to employees: Using … is no longer optional, as company considers another change to its performance review process
is now asking managers to evaluate employees based on their use of internal AI tools, with the company considering adding formal metrics to its performance review process as it pushes for greater adoption of artificial intelligence across the organization.
Julia Liuson
, president of Microsoft's Developer Division responsible for tools like
GitHub Copilot
, recently instructed managers that AI usage "should be part of your holistic reflections on an individual's performance and impact." In an internal email, Liuson declared that "using AI is no longer optional — it's core to every role and every level."
The evaluation changes are designed to address what Microsoft sees as lagging internal adoption of its Copilot AI services. Some teams are now considering including more formal AI usage metrics in performance reviews for the next fiscal year, according to sources familiar with the plans.
Microsoft faces growing competition in AI coding market
The push comes as Microsoft's GitHub Copilot faces increasing competition from rival AI coding services, including Cursor, which recent data suggests has surpassed GitHub Copilot in key developer market segments. The competitive pressure has even become a point of tension in Microsoft's ongoing partnership negotiations with OpenAI.
Microsoft currently allows employees to use certain external AI tools that meet security requirements, including coding assistant Replit, while encouraging greater use of its internal AI services.
Company tightens performance standards amid AI investment
The AI evaluation initiative coincides with Microsoft's broader shift toward stricter performance management. The company recently implemented new policies including a two-year rehire ban for underperforming employees and introduced a "Global Voluntary Separation Agreement" offering 16 weeks of severance to low performers who voluntarily leave.
Earlier this year, Microsoft terminated approximately 2,000 employees deemed underperformers and plans thousands more job cuts primarily targeting its sales division. These workforce changes reflect the company's efforts to balance massive AI investments, including roughly $80 billion in data center spending, with operational efficiency as it positions itself for what CEO
Satya Nadella
calls "the AI era.'
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