Microsoft Signs AI Student Data Privacy Deal with US Teacher Unions

Microsoft has entered into a legally binding AI privacy agreement with the American Federation of Teachers and the United Federation of Teachers. The agreement prohibits Microsoft from using student data to train AI models, tracking students, or deploying AI companion chatbots. School districts are empowered to terminate contracts if Microsoft violates these terms. The deal comes a week after New York City Mayor Zohran Mamdani banned AI in NYC schools, with Los Angeles Unified also pausing student AI use. Teacher unions are now pushing OpenAI and Anthropic to sign similar agreements.