Microsoft Developer Division emphasizes use of AI tools in employee evaluations

Microsoft is tightening its performance standards as it faces growing competition in the AI coding market. The company is now requiring managers to evaluate employees based on their use of internal AI tools. Julia Liuson, president of Microsoft's Developer Division, emphasized that AI usage is no longer optional but core to every role and level. The company is considering adding formal AI metrics to its performance review process to drive greater adoption of artificial intelligence across the organization.

Some teams are planning to include more formal AI usage metrics in performance reviews for the next fiscal year. This move is in response to Microsoft's perception of lagging internal adoption of its Copilot AI services. The competition in the AI coding market is intensifying, with Microsoft's GitHub Copilot facing challenges from rival services like Cursor.

Microsoft is allowing employees to use external AI tools that meet security requirements while encouraging the use of its internal AI services. The company has also implemented stricter performance management policies, including a two-year rehire ban for underperforming employees and a voluntary separation agreement offering severance to low performers who choose to leave.

Microsoft's recent job cuts and workforce changes reflect its efforts to balance massive AI investments with operational efficiency. The company is positioning itself for what CEO Satya Nadella calls 'the AI era.'

According to the source: Times of India.