Microsoft Agrees to New AI Privacy Rules for Student Data After New York Schools Tighten AI Use
Microsoft has signed a legally binding AI privacy agreement with two major US teachers unions, preventing the company from using student or teacher data to train AI models, tracking students or allowing AI to make high-risk decisions without human review. The agreement comes as New York City and Los Angeles tighten rules around generative AI in schools.
Microsoft has agreed to a new set of legally enforceable AI privacy protections for schools in the United States, including a ban on using student and teacher data to train its AI models.
The agreement was announced in New York on September 9 by Microsoft Vice Chair and President Brad Smith, American Federation of Teachers (AFT) President Randi Weingarten and United Federation of Teachers (UFT) President Michael Mulgrew.
The new framework, called the National AI Safety & Privacy Standard, also prevents Microsoft from tracking students and requires human oversight when AI systems are involved in high-risk decisions.
School districts will be able to include the provisions directly in their Microsoft contracts. If Microsoft violates the terms, districts can terminate contracts and seek damages.
Microsoft sets limits on student data and AI use
The standard contains 10 enforceable protections covering data privacy, security and transparency.
Microsoft will not be allowed to sell student information, use it for advertising or collect more data than necessary. The company must also provide clear explanations of how its AI tools work.
The agreement requires Microsoft to report data breaches within 72 hours and address security vulnerabilities within specified deadlines. Annual certification and audits are also part of the framework.
AI companion chatbots designed for students are excluded under the agreement.
Smith described the arrangement as being centered on privacy, safety and transparency. Microsoft said the provisions will apply to every school district it works with from November 1.
Districts will also be able to add the requirements to existing contracts without renegotiating their entire agreements.
Weingarten described the agreement as a strong privacy arrangement with enforceable provisions, arguing that technology companies need to take greater responsibility for AI products used in schools.
Dany is a business journalist with Annuity Outlook Magazine, with over 16 years of experience across print, digital, and wires. He covers business, technology, policy, and corporate developments, with a focus on in-depth reporting and analysis. Over the years, he has worked across multiple editorial platforms. Skilled in content creation, editing, proofreading, and overseeing print layouts, his career spans multiple editorial platforms.
