Microsoft signs 'iron-clad' student privacy deal with teachers unions after NYC AI ban

Microsoft has signed a legally binding AI privacy agreement with the American Federation of Teachers and United Federation of Teachers, a week after Zohran Mamdani banned AI in NYC schools. The standard bars Microsoft from training AI on student data, tracking students or offering AI companion chatbots. School districts can cancel contracts over violations. Los Angeles Unified has paused student AI use, while unions want OpenAI and Anthropic to sign next.