Microsoft Strikes Historic Union Deal on AI Usage, But What Does It Mean for Workers?
Portfolio Pulse from Anusuya Lahiri
Microsoft Corp (NASDAQ:MSFT) has entered into a union agreement with the Communications Workers of America, incorporating AI usage terms into its first U.S. collective bargaining contract. The contract covers staff at ZeniMax video game studio and includes Microsoft's six AI principles. The company must inform the union about AI implementations affecting workers and negotiate impacts. This is part of Microsoft's initiative to integrate AI into its products, with the company recognizing AI's potential to change job roles. Microsoft's union-friendly approach contrasts with some industry peers. Microsoft shares fell by 1.55% to $368.48.
December 11, 2023 | 5:25 pm
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Microsoft's union agreement on AI usage may foster positive labor relations, but the stock experienced a 1.55% drop, possibly due to concerns over the implications of AI on the workforce.
The agreement with the union is a significant step in addressing AI's impact on the workforce, which could be viewed positively in terms of corporate responsibility and labor relations. However, the immediate impact on the stock price was negative, with a 1.55% decline. This could be attributed to market concerns about the costs and challenges of integrating AI into the workplace, as well as the potential for job role changes and the need for ongoing negotiations with the union, which may introduce uncertainty.
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