Microsoft has become the first major tech firm to adopt legally binding privacy standards for artificial Intelligence (AI) in schools through an agreement with the National Academy for AI Instruction, a partnership involving the American Federation of Teachers, Anthropic, and OpenAI.
The standards, effective November 1, 2026, include definitions of student data, encryption, audit provisions, and a ban on using data to train AI models. The standards apply an “intentionally broad” definition of student data—including directory information such as names, grades, and behavioral records, but also writing prompts, memory files, and work outputs, as well as information such as keystrokes or eye tracking that could “reasonably be used” to identify or link to students.
At its core, the agreement turns shared principles into clear, enforceable protections centered on three priorities:
- Protecting privacy: Educators, parents, and students can have confidence that data remain theirs. Student and educator data will not be used to train AI models, sold, or repurposed, and schools will maintain control over how data are used, retained, and deleted.
- Enhancing safety: Students and educators are protected by strong security, safeguards, and human oversight. AI systems must be designed to avoid harmful or manipulative experiences, protect sensitive information, and meet rigorous standards for security, accountability, and responsible use.
- Providing transparency and control: Families can expect clear, accessible information about how AI is being used in schools and their safeguards, including what data are collected and what protections are in place. Schools retain control over when and how AI is used, and companies need to communicate clearly about product changes, risks, and controls.
AI is already shaping how schools operate. These standards help educators shape how it is used while preparing the next generation.