Microsoft Binds AI Use to Student Privacy After NYC Ban

Microsoft has entered a legally binding AI privacy agreement with the American Federation of Teachers and the United Federation of Teachers, following the New York City ban on AI in schools. The deal prohibits Microsoft from training its models on student data, tracking students, or offering AI companion chatbots in school environments. School districts retain the right to terminate contracts if the company violates the terms. Los Angeles Unified has already suspended student AI usage, and teachers’ unions are urging OpenAI and Anthropic to adopt similar safeguards. The agreement underscores the growing demand for strict controls on AI in education and signals a shift toward tighter oversight of data use in schools.