Microsoft Wins Trust with Stricter AI Rules for Schools

Microsoft shares gained around 0.7% on Friday morning to $495.93 after announcing agreements with two major teachers unions to implement ten enforceable principles governing AI use in schools.

The rules, which come into effect in November, are aimed at building trust among school districts and ensuring the responsible development of artificial intelligence in education.

Under the agreement, Microsoft has committed to not using student or educator data to train its AI models, limiting data collection, and explaining its systems to families in plain language.

The company will also prohibit AI companions in classrooms and ensure that decisions with serious consequences are subject to human review.