Microsoft has new AI privacy rules for schools

THE NEWS

What happened

Microsoft has agreed to ten new privacy and safety principles for AI use in US schools following pressure from the American Federation of Teachers (AFT). The contractually enforceable terms prohibit training AI models on student or educator data, ban AI companions, limit data collection, and require human review for high-risk decisions. This agreement follows recent bans on student-facing AI in New York City and Los Angeles, signaling a shift toward stricter guardrails as districts prepare for the next wave of AI adoption.

CONTEXT

Why it matters

Microsoft has signed a landmark agreement with the American Federation of Teachers establishing strict AI privacy rules for schools. The contractually enforceable terms prohibit training AI models on student data, ban AI companions, limit data collection, and mandate human review for high-risk decisions. This move follows recent bans in NYC and LA, setting a new standard for responsible AI deployment in US education.

AT A GLANCE

Key facts

• Microsoft committed to ten new privacy principles for schools through an agreement with the American Federation of Teachers (AFT) and its NYC affiliate.
• The terms are contractually enforceable and allow school districts to adopt them starting in November without renegotiating entire contracts.
• Microsoft pledges not to train AI models on student or educator data collected within these agreements.
• AI companions are explicitly prohibited under the new safety principles.
• Microsoft will limit data collection and disclose tool functionality to families in plain language.
• Human review is required for any high-risk AI decisions involving students or staff.
• The agreement follows one-year bans on student-facing AI implemented by New York City and Los Angeles school districts.
• AFT President Randi Weingarten called the terms 'iron-clad' and noted no other entity, including the federal government, has stepped up to regulate this area.