Today, Microsoft published its 2026 Responsible AI Transparency Report. The report highlights the progress we’ve made in building and deploying AI responsibly, supporting our customers, and strengthening our responsible AI governance, tools, and practices. You can explore the report in its entirety here.

AI is moving fast, and so are societal expectations. The boundaries of what people can accomplish with AI are expanding, and communities are asking more questions about how AI systems are designed, built, and used. As AI becomes more integral to how we live and work, confidence that AI systems are operating reliably and securely is becoming an essential prerequisite to their broad and beneficial adoption.

At Microsoft, we have been building a responsible AI program for nearly a decade, rooted in two core beliefs: that trust is foundational to realizing the benefits of AI and that the empowerment of people and organizations must remain at the center of our strategy. As capabilities advance and adoption accelerates, that experience is helping us meet this moment and adapt for what comes next.

Our third annual Responsible AI Transparency Report shares how our program is evolving and the priorities that continue to shape our work. Over the last year, investing in three specific areas has enabled us to embed trust more deeply and at greater scale: adaptive governance and technical risk management, practical tools and capabilities, and shared practices and strong partnerships. These investments cut across five trends shaping the AI landscape, including the rapid expansion of agentic AI.

Taken together, these trends and investments underscore our view that model capability alone will not determine the impact of AI. That will depend on organizations that develop and deploy AI technologies that deliver real value—and govern them with the rigor and adaptability needed to earn and sustain trust.

Adaptive governance and technical risk management

As the frontiers of AI advance, we are making our governance more adaptive and more tightly integrated with engineering workflows. In practice, this means that we have updated our policies to better match the AI tech stack and AI value chain, evolved our risk management practices to address emerging AI capabilities and risks, and strengthened the readiness of our responsible AI community: the people who operationalize our program at enterprise scale.

This year, we re-engineered our Responsible AI Standard to make it more adaptive to evolving technical realities, uses, risks, and regulatory requirements. The new Standard is structured by reference to different components of the tech stack—models, platform services, and applications—and the role that Microsoft plays in developing or deploying those components. It combines core requirements that always apply with more targeted, scenario-specific requirements that can evolve as capabilities and risks change. For example, we apply some of our most rigorous risk management measures to AI systems with the most significant cyber capabilities, helping ensure that advances in AI favor the defenders responsible for securing critical digital infrastructure.

We are also evolving our technical risk management practices. Increasingly capable systems can retain memory, use tools, access data, and take actions on behalf of users. Governing these systems requires us to think beyond the behavior of an individual model or application to interactions among models, agents, applications, tools, data, and people. Our work increasingly focuses on controls such as agent identities, tool permissions, and monitoring of actions.

And governance only works when people can put it into practice. We have continued to build responsible AI capabilities across Microsoft, equipping thousands of engineers and product managers with training on topics such as agentic AI threat modeling and prompt injection defenses.

Together, these investments are helping us move toward a more continuous, lifecycle-based approach to AI governance. With agentic AI, risks can evolve as systems interact with their environments, users, and other systems. Our governance needs to evolve with these agentic capabilities—and incorporate what we learn from their testing and deployment.

Practical tools and capabilities

Effective governance depends on tools that help translate policy goals into action. As developers and organizations navigate a more complex technical and regulatory environment, they need practical ways to identify risks, evaluate systems, establish controls, and monitor how AI behaves in the real world.

We are applying what we learn from governing AI at Microsoft into tools, capabilities, and resources that help developers and organizations beyond Microsoft do just that—whether they build on our platforms or leverage open-source projects.

We have expanded tools to evaluate AI systems across the lifecycle. A new AI Red Teaming Agent helps accelerate the identification and evaluation of risks. Agent evaluators help developers measure the quality, safety, and performance of agentic applications. RAMPART turns red team findings into repeatable tests, enabling more continuous coverage as systems change.

We are also building greater visibility and control into agentic systems. With ASSERT and Agent Control Specification, developers can evaluate agents against their policies, place runtime controls at critical points in an agent’s workflow, and monitor behavior.

These tools and capabilities reflect a shift: as systems become more dynamic, governance needs to become more operational. Organizations need to be able to see what their systems are doing, test how they behave, and intervene when necessary—not just assess them before deployment.

Organizations also need confidence—and increasingly need to demonstrate—that responsible AI practices are being implemented consistently. Microsoft is one of the few companies certified against ISO 42001 across a broad portfolio, including Microsoft 365 Copilot, Foundry, and GitHub Copilot. Over the last year, we have simplified and strengthened our internal processes that support that certification.

Ultimately, responsible AI governance is a shared responsibility across the AI value chain. Our goal is to help make the practices and capabilities needed to meet that responsibility more accessible, practical, and scalable.

Shared practices and strong partnerships

The challenges of governing AI are bigger than any one company, and increasingly interconnected AI systems make collaboration even more essential.

As AI adoption expands across borders and sectors, we need shared expectations for how systems are evaluated, monitored, and governed, as well as interoperable standards that enable visibility into interactions across tools, data, and systems. We also need to keep advancing the underlying science and technical practices so that we can benefit from rigorous, applied insights into what effective governance looks like and where the remaining gaps are.

That starts with research. Over the past year, we advanced our work with the US Center for AI Standards and Innovation and AI Safety and Security Institutes in Australia, Singapore, and the UK to strengthen the science and practice of AI evaluation. We also launched an External Red Team Alliance with 18 universities across six continents to expand understanding of priority risks.

Common technical practices and standards are critical. Through the Frontier Model Forum, OpenTelemetry, and the Appia Foundation, we are helping develop approaches spanning frontier cyber benchmarks, end-to-end observability for increasingly agentic systems, and AI assurance across supply chains and sectors. We are also contributing to efforts that make transparency reporting more interoperable across organizations and jurisdictions, including through an OECD-led informal task force that developed the Hiroshima AI Process Reporting Framework version 2.0.

We also need shared ways to measure progress. We cannot meaningfully assess progress if every organization measures AI risks differently. Through our work with MLCommons, we are helping expand AILuminate into a broader suite of reliability benchmarks, creating common approaches for evaluating areas such as jailbreak resilience, multilingual performance, and psychosocial risk in conversational AI.

Shared learning, shared practices and standards, and shared measurement can help the entire ecosystem develop while raising shared expectations for trust.

Meeting the moment and investing for the future

Our experience over the past year has reinforced that responsible AI cannot be static. It has to be embedded in development processes, supported by practical tools, and continually informed by what we learn. That is why our responsible AI investments extend from the systems we build, to the tools we provide our customers, to the research, practices, and measurement approaches we help develop with the broader ecosystem.

Our 2026 Responsible AI Transparency Report explores this work in more depth—from how we re-engineered our Responsible AI Standard to how we are strengthening governance for agentic AI, advancing evaluation, and addressing AI misuse. We invite you to explore the report to see what we have learned, what we have changed, and how we are putting our priorities into practice.

As AI becomes more powerful and more present in people’s lives, our commitment is to keep listening and learning, to keep strengthening our safeguards, and to keep putting the empowerment of people and organizations at the center of our strategy.

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Today, the House of Representatives passed historic legislation that will protect our customers’ most fundamental privacy rights in the cloud. The bipartisan NDO Fairness Act (H.R.6048) would require that federal courts apply a rigorous standard when issuing non-disclosure orders (NDOs), or secrecy orders, that prevent technology providers from telling customers when law enforcement accesses their emails, texts, photos, and other personal information in the cloud. Microsoft has strongly supported these reforms, and they are consistent with our commitment to protect our customers and ensure trust in the digital services that are powering the global economy.  The House’s passage of the NDO Fairness Act marks a significant step forward. We now look forward to working with the Senate to advance these important reforms.

The NDO Fairness Act would finally correct the glaring disparity between covert searches in the physical and digital worlds. Law enforcement must meet a strict standard for secret physical searches, but these restrictions do not apply to secret searches for data stored by technology providers. Instead, law enforcement can obtain boilerplate secrecy orders under a 40-year-old law, the Electronic Communications Privacy Act (ECPA), enacted before the cloud even existed. This represents a fundamental shift from historical law  enforcement practices where secrecy was the exception, not the norm. Officers or agents would knock on your door with a warrant or serve your company with a subpoena. If you had an issue with that, you could go to court to object. But NDOs, often obtained without meaningful judicial review, allow law enforcement to skip going to you and instead go to your cloud provider for your data in secret.  

This is a problem with far-reaching consequences. The overuse of secrecy orders erodes trust in and discourages adoption of the cloud, stifles transparency and accountability, and threatens our fundamental freedoms. Notice is perhaps the most foundational protection against government overreach. It is necessary to give meaning to nearly every other right we enjoy. This is because it is a lot more difficult to assert your rights when you don’t know they are at risk to begin with.  

Two investigations, two administrations, one case for reform 

In recent years, Congress has learned this lesson firsthand. Microsoft first testified and began working with Congress in support of the NDO Fairness Act following reports in 2021 that the first Trump Justice Department used NDOs in a leak investigation that prevented notice of legal demands to Members of Congress, their staff, and the press. In a subsequent review, the Justice Department’s Inspector General found that the NDOs used boilerplate justifications that did not include case-specific information and did not even inform the court that some accounts belonged to Members of Congress. The NDOs were then renewed for years—some even after the investigation was public and individuals were no longer targets.  

This is despite the fact that, under our Constitution, Congress is a separate branch of government and has unique Speech or Debate privileges, and the press is entitled to heightened First Amendment protections. 

Separately, a recent Senate investigation revealed that the Biden Justice Department’s “Arctic Frost” probe of the 2020 presidential election sought telephone records from more than a dozen Members of Congress. As first disclosed by Senator Grassley and recently reported in the New York Times, the subpoenas were accompanied by NDOs that, again, did not inform the judge of the fact that the phone numbers belonged to Members of Congress. 

The NDOs in these two investigations illustrate a core problem with NDOs. And it’s a problem that spans administrations and extends well beyond investigations involving Members of Congress: Too often, courts are not aware of the most basic facts needed to evaluate whether total secrecy is necessary.  

Microsoft’s record: Standing up for our customers 

This is why Microsoft, for years, has fought to strengthen our customers’ rights and has challenged unlawful secret surveillance. We’ve stood up for our customers not just in the halls of Congress, but in courts across the country and in daily negotiations with law enforcement. We routinely challenge NDOs and convince the government to modify secrecy orders to permit notice to our customers. When we can’t reach a reasonable agreement with the government, we don’t hesitate to go to court. Microsoft is currently seeking to modify or vacate several NDOs in courts across the country. While the details of these challenges remain under seal, this includes a now-public appeal brought by LinkedIn, a Microsoft subsidiary, that is scheduled for oral argument before the US Court of Appeals for the Fourth Circuit on September 15. 

Our efforts over the years have led to policy changes at the Department of Justice, including guidance limiting the duration of NDOs after Microsoft filed a lawsuit against the US government in 2016 challenging indefinite NDOs as unconstitutional.  

Sometimes, challenges to secrecy orders are unsealed, and we’re able to share additional details; most often, we simply provide our customers with notice, allowing them to take steps to further protect their rights. But these efforts, no matter how successful, have not stopped the flow of overbroad NDOs.  

The NDO Fairness Act 

Challenges in court cannot do the work of Congress. We need the legislative reforms contained in the NDO Fairness Act. These would:  

• End boilerplate secrecy orders by requiring judges to consider the full facts and circumstances of each order.  

• Ensure that the NDO statute is consistent with the First Amendment by requiring courts to strictly scrutinize requests for secrecy.  

• Codify restrictions to prevent indefinite secrecy orders and limit the length of extensions by requiring time-limited orders.  

• Recognize technology providers’ statutory right to challenge an order to ensure providers can stand up for their rights and their customers’ rights.  

• Increase transparency reporting around the government’s use of secrecy orders.  

The NDO Fairness Act would not eliminate NDOs. Nor should it. Temporary secrecy is appropriate in some cases—particularly those involving child exploitation, terrorism or other violent crimes, nation-state cyberattacks, or cases where there is clear evidence that notice would jeopardize a sensitive investigation. Microsoft is a strong partner with law enforcement in its efforts to protect our nation and the most vulnerable members of society. But these reforms would ensure that NDOs are consistent with our most fundamental rights and freedoms.  

The Senate must now seize the moment 

Congress has made significant progress advancing these reforms. I want to thank Speaker Johnson and Majority Leader Scalise as well as Representatives Fitzgerald and Nadler for scheduling a vote and sponsoring this legislation. House Judiciary Committee Chairman Jordan and Ranking Member Raskin also deserve our appreciation for championing this legislation through the House committee process. As consideration moves to the Senate, we look forward to working with Senators Lee and Coons and supporting their leadership and efforts to enact this bill into law.  

Microsoft has fought for the NDO Fairness Act because we stand up for our customers and will fight for their rights. I am thrilled to see bipartisan support for these reforms culminate in today’s House passage of this legislation. But the work is not yet finished. The Senate now has an opportunity to build on this momentum and help enact these critical reforms into law. 

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Today we’re publishing our first “Public Country-by-Country Report” for our fiscal year 2025, disclosing our taxes in the period from July 1, 2024, to June 30, 2025. It covers the countries and regions included under European Union rules and shows, for each one, our revenue, profit, number of employees, and income tax accrued and paid during the year.  
 
We have provided this kind of information directly to tax authorities for several years under the Organization for Economic Cooperation and Development (OECD) framework. It is now published to support transparency commitments, and we believe it is important to proactively address any questions these disclosures may raise, recognizing that numbers on a spreadsheet rarely tell the full story.
 
Microsoft pays the taxes we owe in every country where we operate. We know there are strong views about whether companies are paying enough, and we believe providing this context leads to a more informed conversation.

Understanding country-by-country reporting

Country-by-country reporting is not widely understood outside tax and accounting circles. Some figures may look surprising at first, but a number that appears low or high in one country does not, on its own, tell the full story. Tax law differs from country to country, and there are two important things to keep in mind when reading the report.  

First, the numbers are prepared using rules that differ from United States or country-specific financial accounting and tax rules, so they may not match other Microsoft information people have seen. For example, this report combines all Microsoft legal entities in a country and follows the reporting rules required by EU regulations. By contrast, local statutory accounts usually cover just one legal entity, follow local accounting rules, and may use a different fiscal year from Microsoft’s.  

Second, accrued tax is what you owe for the year. Tax paid is the amount actually paid during the year. The two can differ because the timing of owing tax and paying tax doesn’t match exactly. 

France is a good example of why a single line can look unusual without context. In FY25, cash tax paid in France reflects a one-time refund of tax overpaid in an earlier year. That makes this year an outlier. In this specific case, accrued tax may be a better reflection of the taxes borne for the fiscal year. Microsoft paid $374 million in tax in France over the prior three years. 

Variations like these are a normal part of how large companies, both domestic and multinational, are taxed across borders, and they reflect an evolving tax landscape as well as a business that continues to change. We comply with every local rule that applies to us, and as those rules change, our reporting will change with them. Microsoft is committed to a tax structure that reflects where our people work, where we invest, and where functions, assets, and risks occur, and this has been a guiding principle. 

How our investments support local economies

We understand that this discussion is not only about what the law requires or what a single tax line shows in a given year. For many people, it is also about a broader question of contribution: how companies support the countries where they do business. That contribution includes the taxes we pay, the capital we invest, the local jobs and infrastructure we support, and the economic activity created through customers and partners. In the S&P, Microsoft ranks second globally in corporate income taxes paid in the last year, with a total of $28.7 billion. In fiscal year 2025, we paid $6.3 billion in income tax in the EU. Importantly, this does not include payroll, VAT, property, and other taxes paid in addition. 

Taken together, our tax payments, capital investments, and partner ecosystem reflect a long-term commitment to the countries where we operate. We opened our first European office in the UK in 1982, followed by France and Germany in 1983, and then expanded into Denmark, Ireland (our largest hub in the region), Italy, Norway, Spain, and Sweden in 1985. Microsoft is now present in all 27 EU Member States and across the broader region. We have worked in these and many other communities for decades, and thousands of our employees call them home.  

From research and development to digital infrastructure and partnerships with local organizations, we are investing in ways that support these economies beyond our direct commercial activity. At our core, we are building tools that help large enterprises, small and medium-sized businesses, institutions, and individuals become more productive and competitive, which strengthens their business and benefits the people they serve. We only do well when our customers do well. In practice, that means helping customers design and manufacture cars better, helping patients get their next appointment sooner, or making it simpler for someone to find that dream job. 

Our investments in digital infrastructure are not only supporting the local digital economy, they are also contributing meaningfully through both taxation and capital expenditure. Across markets, we continue to invest at scale in datacenters and supporting infrastructure, creating value that extends well beyond the technology sector. In the three years to June 30, 2025, our total capital expenditure amounted to $176 billion, and we spent $89.2 billion on research and  development in the markets where we operate. 

Our customers require local industry- and country-specific expertise, and this is where our partner ecosystem plays an important role. Many of these partners are local businesses themselves. A 2024 IDC study on partner profitability showed that for every $1 of Microsoft revenue, partners that provide services generate $8.45, and partners that develop software generate $10.93. While this varies by country and partner segment, it offers another useful lens on how Microsoft’s business contributes to local economic activity. 

Investments in digital infrastructure are not only investments in technology ecosystems, but in national and local economies as well. They support jobs, strengthen supply chains, create opportunities for companies across many sectors, and help build the foundation for growth and economic competitiveness beyond the digital economy. 

That is the broader context for this report. Tax is one important measure of contribution, but it is not the only one. Our investments, partnerships, infrastructure, and long-term presence in countries around the world also reflect a commitment to helping strengthen the economies and communities where we operate, today and for the future.

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Today, Microsoft is announcing new agreements with the Center for AI Standards and Innovation (CAISI) in the US and the AI Security Institute (AISI) in the UK to advance the science of AI testing and evaluation, including through collaborative work to test Microsoft’s frontier models, assess safeguards, and help mitigate national security and large-scale public safety risks. These agreements matter because ongoing, rigorous testing is essential to building trust and confidence in advanced AI systems. Well-constructed tests help us understand whether our systems are working as intended and delivering the benefits they are designed to provide. Testing also helps us stay ahead of risks, such as AI-driven cyberattacks and other criminal misuses of AI systems, that can emerge once advanced AI systems are deployed in the world. 

While Microsoft regularly undertakes many types of AI testing on its own, testing for national security and large-scale public safety risks necessarily must be a collaborative endeavor with governments. This type of testing depends on deep technical, scientific, and national security expertise that is uniquely held by institutions like CAISI in the US and AISI in the UK and the government agencies they work with. By combining that government expertise with Microsoft’s experience building and deploying AI systems at global scale, together we are better positioned to anticipate and manage national security and public safety risks in ways that build public trust and confidence in advanced AI systems.  

Improving AI evaluation science through cooperative research and operational experience 

Advancing the science of AI evaluation requires more than isolated research or one-off testing. It depends on sustained collaboration between industry, government, and research institutions. Through our new and expanded partnerships with the US and UK governments—alongside national security–focused evaluations of model capabilities—Microsoft is bringing technical expertise and operational experience to strengthen AI evaluation methods and practical testing foundations.  

• In the US, with CAISI, Microsoft and NIST will collaborate on improving methodologies for adversarial assessments—testing AI systems in ways that probe unexpected behaviors, misuse pathways, and failure modes, much like stress-testing whether airbags, seatbelts, and braking systems work effectively and reliably in safety-critical driving scenarios. This work involves co-developing more systematic and reproducible approaches to evaluation, including shared frameworks, datasets, and workflows for assessing safety, security, and robustness risks in advanced AI systems. It also builds on our AI Red Team’s novel research and tools to detect compromised models at scale. 

• In the UK, with AISI, Microsoft will collaborate on research related to frontier safety and security, including methods for evaluating high-risk capabilities and the effectiveness of the safeguards used to address them. The partnership will also include societal resilience research examining how conversational AI systems interact with users in sensitive contexts.  

These collaborations are designed to improve measurement science, evaluation methodologies, practical testing workflows, and real-world mitigation impact. They reflect a shared commitment to rigorous, practical approaches that can make safeguards stronger and evaluations more reliable. 

Looking ahead 

No organization can address these challenges alone. Our partnerships with CAISI and AISI are a key part of a wider effort to build the institutions, research base, and shared methodologies needed for effective AI testing. This effort also includes: 

• Pursuing research and evaluation in collaboration with other AI institutes globally while helping advance shared priorities and methodologies for testing through the International Network for AI Measurement, Evaluation and Science. 

• Helping deliver industry best practices through the Frontier Model Forum (FMF), an initiative dedicated to advancing the science and practice of frontier AI safety and security. Through the FMF, we are working with other leading AI developers to support independent research, develop shared evaluation methodologies, and promote transparency around risk mitigation strategies.  

• Contributing to MLCommons, a multistakeholder non-profit that develops and operationalizes testing tools such as AILuminate, a family of safety and security benchmarks. In February, we announced efforts underway with institutions in India, Japan, Korea, and Singapore to expand AILuminate to support multilingual, multicultural, and multimodal evaluation, helping to make sure that AI systems work well in the languages and cultural contexts in which people around the world use them. 

As AI capabilities advance, so too must the rigor of the testing and safeguards that underpin them. We will apply what we learn from these partnerships directly into how we design, test, and deploy AI systems, ensuring that progress in evaluation science translates into safer, more secure products for our customers. As these partnerships progress, we will share what we learn and look for opportunities to apply insights and best practices to AI testing more broadly.   

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As we mark Safer Internet Day 2026, we’re reflecting on a simple but enduring principle: safety must be designed into online services, not bolted on. Microsoft’s work in this space spans more than two decades—from technology solutions like PhotoDNA to our investments in responsible gaming, public-private partnerships, and empowering users through education. This foundation guides our approach as we help individuals and families navigate a rapidly evolving landscape shaped by new technologies and new risks and as we innovate with next-generation AI offerings. At a moment when 91% of people tell us they worry about harms introduced by AI, our commitment to responsible innovation has never been more important—especially for our youngest users.

Read on for more about our longstanding efforts to create a safer digital environment, plus key findings from our Global Online Safety Survey and new examples of our work to empower families and communities through tools, research, and educational resources—including the latest release in Minecraft Education’s CyberSafe series.  

Ten years of safety research 

2026 marks the tenth year of our annual Global Online Safety Survey research. For a decade, we have invested in surveying teens and adults around the world about their experiences and perceptions of life online—aiming to provide fresh insights to support our collective work. That’s 130,000+ interviews across 37 countries, with the results available on our website. Ten years later, respondents tell us that they feel more connected and more productive, but less safe online.  

This year’s Global Online Safety Survey also highlights the complexity of the digital environment young people now inhabit. Teens’ exposure to risk rose again, with hate speech (35%), scams (29%), and cyberbullying (23%) among the most commonly experienced harms. At the same time, teens demonstrated striking resilience: 72% talked to someone after experiencing a risk, and reporting behavior increased for the second consecutive year. But worries about the misuse of AI continue, underscoring again why safety-by-design for AI is essential, not optional. Find the full results and country-level summaries here. 

Year on year, the research has told a story of evolving online safety risks and of the real-world impact. In 2026, the call to action is more urgent than ever—unless industry can deliver safe and age-appropriate experiences, young people risk losing access to technology. At Microsoft, spanning across our teams from Windows to Xbox, we have sought to continuously evolve our approach and to lead industry in advancing tailored and thoughtful safety solutions.   

Evolving to meet the moment 

Looking ahead, we know we need to continue to build strong guardrails to tackle acute risks and to leverage our experience while being informed by new research, new perspectives, and new technologies. The application process closed yesterday for our first AI Futures Youth Council, to be comprised of teens from across the US and EU. We’re looking forward to bringing those teens together soon for a first meeting to get their direct feedback on the role they want emerging technology to play in their lives and how we can best support their safety.  

Microsoft has partnered with Cyberlite on a second youth-centered initiative to understand how teens aged 13–17 are engaging with AI companions. Through codesign workshops with students in India and Singapore, we’re capturing young people’s own perspectives on the benefits, risks, and emotional dimensions of AI use—insights that will directly inform educational resources for teens, parents, and educators. Early findings from the first workshop in December 2025 show that young people value AI as a judgment free space while also recognizing the tradeoffs: privacy risks, overreliance, and erosion of critical thinking loom larger for them than bad advice.  

We’re also thinking about how we define safety in the next era of Windows, leveraging the Family Safety controls that have been integrated for over a decade. As many countries have raised the local age for digital consent, more parents will have the option to enable parental controls for teens up to the age of 18—leveraging these tools as part of a holistic approach to digital parenting. And to help parents set up and understand Family Safety, we’ve developed a short new guide. 

Safety is also about transparency, empowerment, and education. At Xbox, bringing the joy of gaming to everyone means remaining transparent about the many ways we innovate so players, parents, and caregivers can feel confident that Xbox continues to be a place for positive play. You can read more about our recently published Xbox Transparency Report and the tools and resources available to players on the Xbox Wire blog.  

We’re also excited to announce the latest release in Minecraft Education’s CyberSafe series: CyberSafe: Bad Connection? This series of immersive Minecraft worlds and educational resources is free and helps translate complex risks into fun learning experiences that meet young people in their favorite blocky world. Bad Connection?—the fifth in the series—reflects our commitment to evolving to meet new and challenging risks, with a focus on tackling serious risks related to online recruitment and radicalization. Learn more about how to access this new Minecraft world here.  

The CyberSafe series has reached more than 80 million downloads since 2022 through a partnership between Minecraft Education, Xbox, and Microsoft, helping a generation of young players build the agency, resilience, and digital citizenship they need to navigate an increasingly online world. As part of our commitment to ensure people have the knowledge and skills they need to benefit from technology and stay safe, Microsoft Elevate is empowering educators and students with tools and guidance to build safer, more responsible digital habits, recognizing that AI is transforming how people learn, work, and connect. Our commitment to helping young people access technology safely is also why we’ve partnered with organizations, like the National 4-H Council to prepare young people for an AI-powered world through AI literacy and digital safety curriculum and game-based learning with Minecraft Education. 

As we look ahead, our goal is clear: build technology that is safe by design, guided by evidence, and informed through partnership. The internet has changed profoundly over the past decade, and so too have the expectations of the people who use it. Safer Internet Day is a reminder that progress requires sustained collaboration across industry, civil society, researchers, and families.

—  

Global Online Safety Survey Methodology  

Microsoft has published annual research since 2016 that surveys how people of varying ages use and view online technology. This latest consumer-based report is based on a survey of nearly 15,000 teens (13–17) and adults that was conducted this past summer in 15 countries examining people’s attitudes and perceptions about online safety tools and interactions. Responses to online safety differ depending on the country. Full results can be accessed here.  

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Today, I had the pleasure of joining a range of leaders for timely, impactful discussions on child well-being in the age of AI at the Vatican, building on thoughtful conversations held during the United Nations General Assembly. These issues are top of mind globally, from parents to policymakers to physicians.

At Microsoft, we remain focused on our goal of empowering young people to use technology safely, mindfully, and in pursuit of social, educational, and economic opportunities. That means taking new steps spurred by regulation, such as new age verification measures for our UK Xbox users, as well as adapting our longstanding commitments to responsible AI and child online safety and privacy to build trust in the AI era. Today, we’re sharing new research on youth perspectives, announcing the AI Futures Youth Council to amplify teen voices, and offering policy recommendations to help families navigate the digital world with confidence.

Centering young people’s voices: Announcing the AI Futures Youth Council and new age assurance research

In 2017, Microsoft led the industry with our first Council for Digital Good—a forum where we could hear directly from young people about their experiences and perceptions of online risk. In 2025, with AI reshaping our world—and their future—we again need to center the voices of young people as we think about responsible design for AI and how we set students up for the future. We are actively working with teens from the Asia-Pacific region to develop our first “for teens, by teens” guide to AI chatbots. Today, I’m pleased to announce the upcoming launch of our first “AI Futures Youth Council,” bringing together teens from the US and Europe to have their say on their future. We’ll share more about the application process soon.

We know that a critical precursor to providing young people positive and productive online experiences is understanding which users are young people. Around the globe, the debate over how to achieve age assurance online continues unabated. We have been grateful to work with CIPL and the WeProtect Global Alliance over the last year to explore how to achieve improved age assurance that is consistent with fundamental rights of privacy and access to information. As with any other safety intervention, our goal is to be proportionate and thoughtful where we take new steps, which is why we have focused on gaming in the first instance—reflecting the responsibilities we have to our youngest users and our ongoing commitment to player safety.

To inform our strategy and the broader policy conversation, we partnered with Praesidio Safeguarding to better understand youth perspectives on age assurance approaches across the UK, Ghana, and Indonesia. We are pleased to share that research today. The findings reinforce the importance of transparency, choice, and trust: teens want clear explanations of how their data is used, express concerns about exclusion where formal proof of age is lacking and show varying comfort levels with the use of biometric and behavioral data. Notably, young people value parental involvement but also highlight the need for independence and privacy as they mature. The results also highlight some of the important differences across geographies. For example, teenagers in Ghana often not only share devices with their families but may also share an account—underscoring a need for nuanced global approaches at multiple layers of the technology stack.

These insights underscore our belief that proportionality—matching safeguards to actual risks—is essential to building trust and empowering youth online. They also highlight the need for age assurance models that are inclusive, flexible, and respectful of youth autonomy—especially in global contexts where device and account sharing are common. We remain committed to ongoing dialogue and innovation, ensuring that our solutions evolve alongside the needs and expectations of children, families, and society at large.

Our policy recommendations: Empower young people to use technology safely

We believe technology should empower young people, not put them at risk. Given the diverse range of online services, it is important to remember there is no single “digital seatbelt” to protect and empower young people online.

We therefore offer the following recommendations as policymakers, regulators, and experts continue to discuss these issues, building on our 2024 blog:

• Avoid blanket access restrictions. Age assurance requirements that block full access to a service—except in limited cases like sites dedicated to age-restricted content (e.g., pornography)—can unintentionally limit child rights, such as access to information. Instead, age assurance should be applied at the service level, target specific design features that pose heightened risks, and enable tailored experiences for children.
• Focus on the highest risks for impact, such as content and features associated with documented harms to children, and as determined through democratic processes. Providers should take steps to assess and mitigate risks to children on their services, while ensuring documentation requirements or compliance obligations do not inadvertently undermine safety. A risk-based and proportionate approach—grounded in clear criteria and supported by interoperable standards—can also help ensure that age assurance is applied where most needed, without introducing unnecessary friction. Providers of high-risk services should bear the responsibility of age assurance.

• Strengthen safeguards for AI companions. Recent tragic events have highlighted the need for continued care in developing AI companions, especially where these may be used by young people. At Microsoft, we are building AI services for empowerment and want the right guardrails in place to protect all users but welcome new, commonsense measures such as those enacted in California and Australia to reduce the potential harms related to suicide and self-injury risks, as well as to sexualized or violent content. We will continue to work closely with researchers and experts to understand and mitigate potential risks to young people in this fast-evolving field.
• Incentivize age-appropriate design. Banning kids from online services isn’t the answer, but what constitutes an “age-appropriate” experience will vary. We have supported a duty of care approach to child safety where the duty can be implemented flexibly, guided by thoughtful and evidence-based regulatory guidance. Ongoing research and expert engagement are needed to understand how to advance child safety and rights on diverse services—not just social media.
• Protect the privacy and security of all users. Tailoring age assurance requirements will help enable proportionate approaches to data processing. Current proposals for age verification by app stores risk creating significant privacy risks by collecting sensitive information and sharing unnecessary age data with a wide variety of services while also not solving the challenges lawmakers want to address. We continue to support federal privacy legislation in the US and encourage global efforts to develop standards and certifications for age assurance providers. Trusted credential sharing can also increasingly be enabled by emerging digital identity ecosystems—including government-issued IDs and wallet-based models—that preserve mutual privacy between issuers and relying parties.
• Support, not overwhelm Our Global Online Safety Survey results show that while parents might underestimate the risks teens face online, teens are most likely to turn to a parent for help. Parents should not face a deluge of notifications nor bear the sole responsibility for safety but have access, awareness, and education on family safety tools that can help them make informed choices appropriate for their family and their values.
• Foster multistakeholder collaboration. We believe it’s essential to elevate the voices and perspectives of young people, as well as for regulators and industry to engage with civil society and partner to advance practical solutions. As child safety regulations come into force, it will also be important to get feedback from affected communities on where regulation may have adverse rights impacts, as well as to understand where harm may have been averted. Public education will be needed to help all users understand why their online experiences might be changing.

We will continue learning, listening, and collaborating, especially with our new Council, and look forward to sharing our insights.

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As Abu Dhabi and Dubai kick off a significant week hosting annual energy and technology conferences, we want to share details of our ongoing and planned investments in the United Arab Emirates. Roughly two and a half years ago, we embarked on a new AI initiative with the encouragement and support of both the United States and UAE governments. Much of this progress has involved a new partnership with G42, the UAE’s sovereign AI company, with whom we’re making critical progress.   

All told, Microsoft will invest $15.2 billion USD in the UAE between the start of this initiative in 2023 and the end of this decade, in 2029. This is not money raised in the UAE. It’s money we’re spending in the UAE. And as we do everywhere in the world, we’re focused not just on growing our business but also on contributing to the local economy. This involves bringing together three critical factors – technology, talent, and trust.   

On some days, it feels like the tech sector is gripped in a rhetorical race to announce ever larger, sky-high numbers. We believe in moving fast while staying grounded and being transparent about our investment details. And we want to share our strong conviction that our investments benefit the shareholders of our company, the people of the UAE, and the relationship between our two nations.   

Our investment numbers  

Our $15.2 billion USD investment includes the following:  

• Beginning in 2023 and through the end of this calendar year, Microsoft will have invested and spent just over $7.3 billion in the UAE. This includes our $1.5 billion equity investment in G42, more than $4.6 billion in capital expenses in advanced AI and cloud datacenters in the country, and more than $1.2 billion in local operating expenses and the cost of goods sold.   

• From the start of 2026 to the end of 2029, we will spend more than $7.9 billion in the UAE. This includes more than $5.5 billion in capital expenses for ongoing and planned expansion of our AI and cloud infrastructure, including new steps we will share publicly in Abu Dhabi this week. It also includes almost $2.4 billion in planned local operating expenses and the cost of goods sold.  

An investment in world-leading technology  

Some of our most important work involves exporting world-leading technology from the United States to the UAE. This includes the GPUs essential to power AI in our datacenters across the country that support the UAE’s people and institutions.  

Microsoft was one of the few companies during the previous administration to secure export licenses from the Commerce Department to ship GPUs to the UAE. In no small measure, this is because of the substantial work we did to meet the strong cybersecurity, national security, and other technology conditions required by these licenses. These licenses enabled us to accumulate in the country the equivalent of 21,500 Nvidia A100 GPUs, based on a combination of A100, H100, and H200 chips.  

Microsoft was also the first company this year under the Trump administration to secure export licenses from the Commerce Department to ship GPUs to the UAE. Approved in September, these were based on updated and stringent technology safeguards. These licenses enable us to ship the equivalent of 60,400 additional A100 chips, in this instance involving Nvidia’s even more advanced GB300 GPUs.  

While the chips are powerful and the numbers are large, more important is their positive impact across the UAE. We’re using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft itself. We’re supporting AI-enabled applications, including our Copilot applications, from a wide variety of local and international providers. And we’re partnering with G42 to support public and private sector organizations across the UAE economy, as well as consumers across the country.  

The UAE’s ranking in the Microsoft AI Diffusion Report published last week shows the country leading the world in per capita AI usage. With 59.4 percent of the population using generative AI, the UAE is ahead of Singapore, which is in second place at 58.6 percent. Beyond these two, no other country tops the 50 percent mark. Microsoft’s infrastructure challenge in the UAE is not a risk of getting ahead of demand but keeping pace with it.  

Investing in talent  

Microsoft’s investment in the UAE is not just about technology, it’s also about people. By cultivating AI talent and skilling individuals to develop, deploy, and use AI in a way that reflects the region’s unique needs, Microsoft is helping to ensure that the UAE remains on the leading edge of AI diffusion.  

Today, Microsoft’s presence in the UAE reflects this commitment. Our growing team includes almost 1,000 full-time employees and related staff representing 40 nationalities. Nearly 100 of our employees are engineers, supported by an Emirati partner ecosystem that has grown almost threefold in just two years, now with 1,400 firms employing nearly 45,000 professionals across the country.  

This year, we established the Global Engineering Development Center in Abu Dhabi to attract world-class tech talent to the UAE. Our engineers not only develop new products and services for Microsoft, but support institutions and businesses across the region so they can use AI and cloud technologies to transform their own operations. As we look to the future, we aspire to grow our engineering teams further and add a new focus on domain-specific AI models and applications that will propel advances in key scientific and technological fields.  

We also opened a new center for the Microsoft AI for Good Lab in Abu Dhabi, staffed by PhD level research talent specializing in large-scale AI models, vision-language models, and post training techniques. Backed by Azure compute grants allocated to partner organizations, this team collaborates with nonprofits, start-ups, researchers, academic institutions, and local businesses to address humanitarian challenges across the Middle East and Africa using AI. Already, the Lab has partnered with researchers to train large language models for low-resource languages, including those spoken in Malawi, Tanzania, Kenya, Uganda, and the Democratic Republic of the Congo – helping ensure that AI serves communities that risk being left behind in the AI age.    

As the Microsoft AI Diffusion Report underscores, people need digital proficiency to fully participate in an AI-driven economy. Without the right skills, AI risks deepening inequality rather than broadening opportunity. That’s why skilling is a core pillar of our investment in the UAE.   

Last November, we committed to skill one million people in the UAE by the end of 2027–and we’re well on our way to meet – and exceed–our goal. Last month at GITEX, Microsoft partnered with UAE government entities to launch an initiative to upskill 120,000 government employees across the federal government, Abu Dhabi, Dubai, and Sharjah. We will also skill 175,000 students and 39,000 teachers through collaborations with GEMS, Abu Dhabi Department of Education (ADEK), and the Knowledge and Human Development Authority (KHDA). We will announce new steps in this area on Thursday in Dubai.  

Talent is the engine of AI leadership. Attracting, nurturing, and building AI talent and know-how is essential to the UAE turning its vision of becoming a global leader into a reality.   

Strengthening trust   

Ultimately, the use of AI depends on trust. People and institutions need to trust that AI will be developed and deployed with responsible safeguards. They need to have confidence that the cybersecurity of AI chips, models, and services will be protected. And they rightly expect AI to serve the public broadly, with cause for optimism that AI will reach and support the Global South.  

Given the role of export controls and other trade issues, the flow of advanced GPUs and AI models also requires trust between nations. This in turn requires clear rules and agreements, coupled with effective compliance systems. And as always, trust between nations depends on strong relationships between its people, grounded in mutual respect and appreciation for each other’s cultures.  

We’re focused on supporting all these needs.   

One important part of this is the Responsible AI Future Foundation, or RAIFF. G42, Microsoft, and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) founded this new foundation in Abu Dhabi in February to promote responsible AI standards and best practices in the Middle East and across the Global South. This foundation is advancing research on the technical and ethical elements of responsible AI and is developing frameworks to ensure ethical development and deployment of AI systems, accounting for cultural diversity.   

A second element comes to life through the first annual Abu Dhabi Global AI Summit, which began Sunday. Hosted by G42, Microsoft, the Responsible AI Future Foundation, and Eurasia Group’s GZERO Media, this Summit brings government ministers, private sector executives, and AI leaders together to discuss what’s needed to drive AI diffusion across the Global South. We meet at a time when there is a growing risk that uneven AI diffusion may widen the economic and societal gaps that divide the world. It’s imperative that governments, businesses, and non-governmental organizations collaborate and take new steps to promote broader access to AI.  

Both these elements build on a third and deeper initiative that Microsoft and G42 have advanced during the past two years. In conjunction with our $1.5 billion investment, Microsoft and G42 created last April a first–of–its–kind binding framework between two private companies. Developed in close consultation with the U.S. and UAE governments, this Intergovernmental Assurance Agreement (IGAA) ensures that both our companies meet or exceed U.S. standards in critical areas such as cybersecurity and physical security, export controls and technology transfer, data protection and responsible AI, and Know Your Customer (KYC) best practices.   

As we drafted the IGAA, we consulted not only leaders from government ministries in our two countries, but with members and staff of both political parties in both houses of Congress in Washington, D.C. We listened to feedback and adapted the IGAA to address their suggestions. And we’ve built a strong compliance infrastructure to implement these requirements based on industry best practices and auditing standards.   

All these steps help bolster mutual confidence and trust between our two governments. But trust between nations also grows through relationships among people. That’s why we’re advancing a fourth and new element this week, traveling to Abu Dhabi with a Seattle delegation of public and private leaders. The group includes a former Governor and local leaders in economic development, higher education, medical research, the non-profit community, and sports. The goal is to deepen understanding, exchange ideas, and explore solutions that can advance both regions.   

Looking to the future  

Microsoft is committed to the future of the UAE and a strong relationship between our two nations. We believe in the UAE’s long-term economic vision and the role the UAE and the U.S. continue to play together to support peace, stability, and growth across the Middle East.  

As we do everywhere we do business, Microsoft is committed to a broad perspective and long-term approach. Our work in the UAE has underscored the importance of connecting technology investments to initiatives to attract and develop the talent needed for a vibrant and self-sustaining tech ecosystem. And work to advance trust, which may seem peripheral to some, is in fact of central importance. From stronger business practices to broader international ties, trust is a critical catalyst for technology success at a local and global level.  

Technology is our business and we’re as excited as anyone by its potential. But we know that ultimately there is only one test that matters. It’s how our technology empowers others to achieve more. Like every public company, our shareholders rightly expect us to deliver value to customers in ways that enable us to continue to grow. But we also judge ourselves by whether we are generating local opportunities and growth that go well beyond ourselves. Across the UAE, we’re committed to passing this test.  

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