Microsoft reduces Israel military access to cloud and AI products over mass-surveillance reports

WASHINGTON — Microsoft said Thursday it had disabled services to a unit within the Israeli military after a company review determined its artificial intelligence and cloud computing products were being used to help carry out mass surveillance of Palestinians. The action comes after The Associated Press and The Guardian published reports earlier this year detailing how the Israeli Ministry of Defense used Microsoft’s Azure platform to aid in the war in Gaza and the occupation of the West Bank. Brad Smith, Microsoft’s vice chair and president, wrote in a blog post that the company was taking steps to enforce compliance with its terms of service.

AP's February investigation showed that the Israeli military’s use of Microsoft products surged after Hamas militants killed more than 1,000 people in a surprise attack on Oct. 7, 2023. Internal Microsoft data showed Israelis were using gigabytes of cloud storage and large amounts of AI-enabled language translation services. The AP also reported that Israel’s military used Microsoft Azure to compile information gathered through mass surveillance, which it transcribes and translates, including phone calls and text messages. That intelligence was then cross-checked with Israel’s in-house AI systems for targeting airstrikes. Internal Microsoft data tied multiple Azure subscriptions to Unit 8200, the elite cyber warfare unit within the Israeli Army responsible for clandestine operations, collecting signal intelligence and surveillance.

Following AP’s report, Microsoft acknowledged in May that it had sold advanced AI and cloud computing services to the Israeli military during the Gaza war and aided in efforts to locate and rescue Israeli hostages. But the company said an internal review found “no evidence” its Azure platform was used to target or harm people. The Guardian, working in partnership with the Israeli-Palestinian publication +972 Magazine and the Hebrew-language outlet Local Call, reported in August that the commander of Unit 8200 had met directly with Microsoft chairman and CEO Satya Nadella in 2021. The Israeli unit then used Microsoft products to aid in the development of an AI-powered mass surveillance system that was sweeping up, translating and analyzing millions of telephone calls per day made by Palestinian civilians. The report also revealed that data from the Israeli surveillance system was being stored at Microsoft cloud data centers in Europe. Following The Guardian’s report, Microsoft commissioned a second review by an outside law firm. While that review is ongoing, Smith said Thursday the probe had uncovered evidence that its products were being used in violation of its terms of service. However, he did not name the specific Israeli unit losing access to Microsoft services.

Microsoft declined to answer detailed questions from the AP on Thursday, including whether Unit 8200 was involved. The company also would not explain how it would ensure the Israeli military wouldn’t simply shift its mass surveillance operations to any of the hundreds of other Azure subscriptions under its control. An Israeli security official told the AP that Microsoft’s move would produce “no damage to the operational capabilities” of the Israel Defense Forces, speaking on condition of anonymity in line with military protocol.

Hossam Nasr, one of more than a dozen Microsoft employees fired or arrested after protests over the company’s involvement in the war in Gaza, called Thursday’s announcement a “significant and unprecedented win.” Nasr, an organizer with the group No Azure for Apartheid, said the action was a start but urged more curbs on tech support for the military.

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