In recent years, Microsoft has gradually integrated the usage of internal AI tools into its employee performance evaluation system. Some teams have begun to assess performance based on this new standard, and the company is exploring the official inclusion of relevant metrics in the upcoming fiscal year.
Julia Liuson, the President of the Developer Division, sent an internal memo to the company’s management team, stressing that Utilizing AI has become an essential core competency that every role and level must master. is no longer optional. The team responsible for development tools like GitHub Copilot is actively promoting the application of internal AI. Liuson pointed out that AI is as important as collaboration, data-driven thinking, and effective communication, which are core values of the company, becoming an integral part of every employee’s performance evaluation.
According to insiders, different departments have varying performance requirements, but some management members are placing significant emphasis on incorporating more specific metrics related to AI usage in evaluations. This is aimed at ensuring that employees actively make the most of the AI tools that the company is strongly promoting.
This strategic adjustment stems from Microsoft’s concerns over the internal Copilot service having lower-than-expected usage rates. Multiple sources suggest that management aims to boost overall usage by directly linking utilization to performance. At the same time, the company hopes that the product development teams will gain a deeper understanding of how these tools operate, allowing them to optimize their work performance.
Currently, Microsoft is allowing external AI tools that meet security requirements into its workflow, including the programming assistance platform Replit. As market competition intensifies, GitHub Copilot is facing pressure from emerging rivals like Cursor. Reports indicate that Cursor has already surpassed GitHub Copilot in certain developer markets and has been evaluated by Barclays as a strong competitor.
The competition for AI programming development tools has also impacted the collaboration negotiations between Microsoft and OpenAI. Reports suggest that OpenAI is considering acquiring Windsurf, a competitor of Cursor. However, due to existing agreements concerning Windsurf’s intellectual property, both OpenAI and Windsurf are reluctant to involve Microsoft in the distribution of these assets, resulting in a stalemate in the negotiations.



