Microsoft is intensifying its push for internal adoption of artificial intelligence, making the use of its AI tools a key part of employee performance evaluations. According to Business Insider, the company is concerned about the underuse of its own AI services, especially Copilot, and has instructed managers to assess employees based on their integration of AI tools in daily workflows.
In an internal memo, Julia Liuson, President of Microsoft’s Developer Division, emphasized the importance of this shift: “AI is now a fundamental part of how we work,” she 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.”
Sources familiar with the matter told Business Insider that some teams are even planning to implement formal performance metrics based on AI usage. This move is part of Microsoft’s broader effort to boost internal engagement with its AI offerings and to ensure that teams, particularly those building AI products, are deeply familiar with the tools.
Despite extensive promotion, internal adoption of Copilot has fallen short of expectations, with some employees favoring external tools like Cursor. Microsoft is now encouraging employees to actively use its AI products, although some secure third-party tools such as Replit are still permitted.
This internal AI push coincides with ongoing organizational restructuring and job cuts. Microsoft has already laid off over 6,300 employees in recent months, including more than 300 in June alone. Most cuts have impacted its gaming and Xbox divisions.
According to a Bloomberg report, another wave of layoffs—potentially in the thousands—is expected as early as July 2025. Internal sources describe the upcoming cuts as “considerable,” particularly affecting Microsoft’s gaming business, which has been under financial scrutiny since the company’s $69 billion acquisition of Activision Blizzard in 2023.
The restructuring has already led to the closure of multiple game studios, as Microsoft aims to streamline operations and improve profitability across its gaming segment.
