Microsoft Investors Demand Oversight On AI Use In Gaza, Questioning Human Rights Due Diligence

Microsoft Corp. (MSFT) is reportedly under growing pressure from a group of shareholders demanding greater accountability over how its artificial intelligence tools are deployed, particularly in conflict zones such as Gaza.

According to a report from Reuters, the proposal was submitted earlier this month, calling on the company’s board to publish a detailed public report on the safeguards it has in place to prevent its technology from being used in ways that may violate human rights or international law. 

Despite the report, Microsoft stock traded 0.5% higher on Friday afternoon after Wedbush reiterated its ‘Buy’ rating on the stock with a $600 price target, stating that Microsoft could join the $4 trillion valuation club this summer and hit $5 trillion within the next 18 months.

Drafted by the Religious of the Sacred Heart of Mary and backed by approximately 60 co-signers representing a combined $80 million in Microsoft shares, the proposal challenges the adequacy of the company’s human rights due diligence (HRDD) practices.

Internal dissent and demonstrations have grown at Microsoft, as employees voice concerns over the company’s provision of technology to the Israel Defense Forces and affiliated agencies. 

Reports from several media organizations indicated that Israeli military and intelligence units increased their reliance on Microsoft Azure and AI tools from OpenAI following the Hamas-led assault on October 7, 2023. 

In response, the company had initiated internal evaluations and an independent external review. Microsoft said it did not find any indications that its Azure platform, AI tools, or other software products have been misused to cause harm or that the Israeli Ministry of Defense has violated the terms of service or AI Code of Conduct.

However, the company acknowledged that it cannot monitor how software is used once deployed on customer infrastructure.

On Stocktwits, retail sentiment around Microsoft shifted to ‘neutral’ from ‘bearish’ territory the previous day.

Microsoft stock has gained over 19% year-to-date and 11% in the last 12 months.

Also See: Meta Reportedly Stands Firm On EU Ad Model Amid Looming Regulatory Penalties

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