Microsoft to weigh internal AI usage in its review process

At Microsoft, using AI tools internally might not just be encouraged, it could soon be part of your job review process. According to Business Insider, some teams at the company are being told to evaluate employees based on how they use internal AI tools like GitHub Copilot.

Julia Liuson, president of the developer division behind tools like Copilot, recently sent an email to managers stressing that AI usage is now “core to every role and every level.” She added that just like communication and collaboration, using AI should be part of how employee impact is measured.

AI adoption is reportedly lagging internally at Microsoft

Sources told Business Insider that Microsoft is concerned about low internal adoption of its own Copilot tools. Some teams may soon formalize this AI usage as part of their performance metrics for the next fiscal year.

The company also believes that employees building AI products need hands-on experience with those tools to improve them. That includes competition-facing products like GitHub Copilot, which is reportedly losing traction to alternatives like Cursor, according to Barclays data.

Copilot vs. Cursor and more friction with OpenAI

Internally, GitHub Copilot is now competing with newer AI coding assistants like Cursor and Replit. Microsoft does allow employees to use some outside tools that meet its security standards, including Replit.

This developer tool race is also surfacing in Microsoft’s ongoing contract talks with OpenAI. The report notes OpenAI is considering acquiring Windsurf, a Cursor rival. But Microsoft’s partnership terms would give it access to Windsurf’s IP, something neither Windsurf nor OpenAI wants.