Microsoft, AFL-CIO reach deal on AI, labor neutrality

Microsoft (NASDAQ: MSFT) and the AFL-CIO union federation have reached a deal, establishing Microsoft’s neutrality in unionization efforts and fostering collaboration on the future of artificial intelligence (AI). This partnership is a first-of-its-kind initiative addressing AI’s impact on the workforce, demonstrating a commitment to navigate the challenges posed by technology.

Microsoft President Brad Smith emphasized the significance of the “neutrality agreement,” providing clarity on how the company will engage with the AFL-CIO and its affiliates if employees or supplier employees seek to form a union. The AFL-CIO, representing 60 unions and around 12.5 million workers, praised Microsoft’s position, contrasting it with other tech companies that actively resist unionization efforts.

This collaboration builds on Microsoft’s prior commitment to labor neutrality, as seen in its agreement during the acquisition of Activision Blizzard (NASDAQ:ATVI) when employees expressed interest in unionizing.

The partnership between Microsoft and AFL-CIO extends beyond labor relations, focusing on the responsible development of AI. Microsoft’s major investment in OpenAI, the creator of ChatGPT, reflects its dedication to advancing AI while considering worker needs. The surge in generative AI’s popularity, exemplified by ChatGPT’s capabilities, has the potential to reshape society and impact employment.

Microsoft and the AFL-CIO underscored the importance of designing AI with worker needs in mind and ensuring that workers have a voice in influencing the technology’s direction. The collaboration will also involve joint efforts on public policy to equip workers with the skills needed for the future job landscape.

The joint event held by AFL-CIO President Liz Shuler and Microsoft President Brad Smith addressed the role of AI in boosting worker productivity, reducing job monotony, and fostering higher living standards. Workers’ desire for influence over AI deployment and assurances regarding future pathways amid job changes were highlighted as key considerations.