Microsoft is asking some managers to evaluate employees based on how much they use AI internally, and the software giant is considering adding a metric related to this in its review process, Business Insider has learned.
Julia Liuson, president of the Microsoft division responsible for developer tools such as AI coding service GitHub Copilot, recently sent an email instructing managers to evaluate employee performance based on their use of internal AI tools like this.
“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 told managers that AI “should be part of your holistic reflections on an individual’s performance and impact.”
Microsoft’s performance requirements vary from team to team, and some are considering including a more formal metric about the use of internal AI tools in performance reviews for its next fiscal year, according to a person familiar with the situation. This person asked not to be identified discussing private matters.
These changes are meant to address what Microsoft sees as lagging internal adoption of its Copilot AI services, according to another two people with knowledge of the plans. The company wants to increase usage broadly, but also wants the employees building these products have a better understanding of the tools.
In Liuson’s organization, GitHub Copilot is facing increasing competition from AI coding services including Cursor. Microsoft lets employees use some external AI tools that meet certain security requirements. Staff are currently allowed to use coding assistant Replit, for example, one of the people said.
A recent note from Barclays cited data suggesting that Cursor recently surpassed GitHub Copilot in a key part of the developer market.
Barclays note, citing the Ramp Business Spending Report
Competition among coding tools is even becoming a sticking point in Microsoft’s renegotiation of its most important partnership with OpenAI. OpenAI is considering acquiring Cursor competitor Windsurf, but Microsoft’s current deal with OpenAI would give it access to Windsurf’s intellectual property and neither Windsurf nor OpenAI wants that, a person with knowledge of the talks said.
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