Microsoft Agrees Not to Train AI on US Student Data

Microsoft has reached a legally binding agreement with the American Federation of Teachers (AFT) in the United States, prohibiting the company from using student or educator data to train AI systems. The only exceptions are for data that directly contributes to student safety and security.

This agreement, which includes provisions for third-party audits, addresses concerns about data privacy in educational technology. The AFT, a major teachers' union, stated that the terms were negotiated due to a lack of federal legislation mandating such protections. Similar discussions are reportedly underway with other AI companies like OpenAI and Anthropic.

In contrast, India is integrating AI into its curriculum starting from Class 3. However, the Digital Personal Data Protection Act (DPDP Act, 2023), which includes specific provisions for children's data, has not yet come into effect, with commencement expected in May 2027.

Until the DPDP Act is fully implemented, the use of Indian schoolchildren's data for AI training by educational technology vendors will depend on contractual agreements with schools or education departments. These contracts are not publicly disclosed, and there is no equivalent of the AFT actively negotiating such terms on behalf of students in India.

The new Microsoft standard, "Privacy and Safety Standard for Schools," applies to its education products, limiting data usage, requiring human oversight for significant decisions, ensuring transparency for families, and affirming school ownership of created content. The agreement also forbids the sale of data, its use for advertising or product development, and student tracking.