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Microsoft Faces Backlash Over AI Use Amid Employee Protests

Microsoft has dismissed two software engineers following their protests at company events regarding the use of the tech giant’s AI products by the Israeli military, as per internal documents obtained by CNBC.

Ibtihal Aboussad, an engineer within Microsoft’s artificial intelligence division in Canada, was terminated on Monday, with the company citing “just cause, willful misconduct, disobedience, or willful neglect of duty” in their decision.

Another engineer, Vaniya Agrawal, had announced her intention to resign on April 11, but Microsoft preemptively ended her employment that same day, according to internal communications available to CNBC.

As tensions flared during Microsoft’s 50th anniversary celebration in Redmond, Washington, Aboussad took it upon herself to challenge the narrative presented by Mustafa Suleyman, CEO of Microsoft AI, during his speech. She confronted him directly, declaring, “Mustafa, shame on you,” and accusing the company of profiting from the ongoing violence against Palestinians.

“You claim that you care for using AI for good, but Microsoft sells AI weapons to the Israeli military,” she continued, highlighting the heavy toll of such actions with her assertion that “fifty thousand people have died, and Microsoft powers this genocide in our region.” She branded Suleyman a “war profiteer” before being escorted out of the venue by security. Aboussad expressed that staff at Microsoft share culpability, stating, “All of Microsoft has blood on its hands.”

Following the disruption, Aboussad communicated her concerns via an email to Suleyman and other executives, including CEO Satya Nadella. She articulated her moral dilemma, writing, “I spoke up today because after learning that my org was powering the genocide of my people in Palestine, I saw no other moral choice.” She criticized the company for silencing dissent from employees in conversations regarding its ethical practices, citing an environment of intimidation faced by Arab, Palestinian, and Muslim employees at Microsoft.

In her correspondence, Aboussad expressed her discontent with being part of a company that contributes to human rights violations, even linking to a petition titled No Azure for Apartheid.

Internal documentation from Microsoft remarked that Aboussad’s email was a confirmation of her misconduct, emphasizing that she displayed intentional disruption during a pivotal corporate event. The communication asserted that her actions were aimed at gaining notoriety rather than fostering constructive dialogue and deemed an immediate termination of her employment justified.

Agrawal also made her voice heard during an executive event by challenging Satya Nadella. In her own communication to Microsoft leaders, she reflected on her growing concern regarding Microsoft’s involvement in the military-industrial complex, asserting that the company operates as a “digital weapons manufacturer” that facilitates surveillance and violence.

Her email stressed the collective responsibility of all employees at Microsoft, stating, “By working for this company, we are all complicit,” and urged colleagues to consider their role in sustaining these systems.

A spokesperson for Microsoft responded by reiterating the company’s commitment to maintaining high business standards and emphasized the importance of voicing concerns in a non-disruptive manner. The representative commented, “We provide many avenues for all voices to be heard. Importantly, we ask that this be done in a way that does not cause a business disruption.” The spokesperson concluded that participants should relocate if their actions caused significant interruption.

Recent months have seen a shifting dynamic in the tech industry concerning military contracts, as major AI companies reassess their stances on collaborating with the defense sector. Partnerships have been established, including those between Anthropic and defense contractor Palantir with Amazon Web Services, as well as between OpenAI and Anduril for national security missions. These developments raise concerns about the broader implications of technology in warfare and the ethical responsibilities of corporations.

—CNBC’s Jordan Novet contributed reporting.

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