The American Federation of Teachers (AFT) and Microsoft have reached a landmark agreement to establish privacy measures for using artificial intelligence (AI) in educational settings. As part of this agreement, Microsoft has committed to not utilizing student or teacher data to train or enhance AI models, except in predefined safety and security scenarios. This agreement includes ten legally binding protections, ensuring transparency and oversight in AI tool usage in schools.

This groundbreaking deal comes in the absence of comprehensive federal or state regulations on AI in schools, a gap the AFT aims to fill through its initiative. AFT President Randi Weingarten highlighted the effort, stating that the agreement was a decisive action to protect students and families in the face of insufficient governmental measures. Moreover, the agreement holds Microsoft accountable, making the company liable for breach of contract should they violate the terms.

The agreement emerges amidst growing political pressure to monitor Big Tech’s activities, particularly in educational settings. There is a noticeable movement across the nation aimed at reducing screen time for young children. Notably, Microsoft has pledged to make the new privacy protections available to all U.S. school districts beginning November 1. These districts will have the option to adopt these protections without renegotiating existing contracts with Microsoft.

The agreement also requires Microsoft to provide clear information to educators and parents on how its AI products function within the classroom, granting schools control over these technologies while ensuring student safety. Brad Smith, Microsoft’s vice chair and president, expressed the commitment to extending these privacy standards across the country’s school districts. The initiative is a collective effort among AFT, Microsoft, and New York City’s United Federation of Teachers (UFT), aiming to enhance AI safety and privacy in education.

UFT President Michael Mulgrew emphasized that this agreement levels the playing field in a rapidly evolving tech landscape, providing the necessary privacy protections school communities demand. The agreement also empowers districts to terminate contracts and seek damages if any breaches occur.

Concurrently, some school districts are implementing their own measures regarding AI use. For instance, New York City’s school system has announced a temporary ban on AI for students in pre-kindergarten through eighth grade, while the Los Angeles Unified School District has banned AI for all students.

The deal between AFT and Microsoft builds upon ongoing efforts to ensure online safety for students and educators, reinforcing existing frameworks that advocate for limited screen and AI use among younger children. Additionally, AFT’s National Academy for AI Instruction continues to receive support from major tech players, including Microsoft, Anthropic, and OpenAI, to ensure robust AI training and curriculum development for its members.

The original article can be read here: [https://www.politico.com/news/2026/09/09/aft-union-microsoft-ai-deal-01068544](https://www.politico.com/news/2026/09/09/aft-union-microsoft-ai-deal-01068544)