Microsoft (MSFT) Limits Access to Its Facial Analysis Tools

Zacks Market Edge Highlights: Microsoft, NVIDIA, Sweetgreen, Constellation Energy and Rivian Automotive
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Microsoft MSFT recently announced its decision to restrict access to its artificial intelligence (AI)-based facial recognition tools to add an extra layer of scrutiny to the deployment and use of these facial recognition tools, thereby aligning with its responsible AI standard guidelines

To comply with these standards, Microsoft will limit access to the facial-recognition features in Microsoft’s Computer Vision, Video Indexer and Azure Face API.

These AI-based facial analysis solutions infer a subject’s gender, age, mood, emotional state and other personal attributes based on algorithms. These solutions have exhibited inaccuracies and problematic biases.

The tech giant revealed that it has identified the unique risks and opportunities posed by facial recognition technology and that it requires its own set of guiding principles.

However, the tech giant’s existing customers of the tools will be able to use them for a year before they expire. If the current customers want continued access, they have a year to apply and receive approval for the same.

To diminish the misuse of Face API, Microsoft will not support the Face API algorithm that claims to determine age, gender, hair, emotional state, smile and makeup. Beginning Jun 21, detection of these attributes will no longer be available to new customers. While, existing customers have until Jun 30, 2023, to discontinue the use of these attributes before they are retired.

Microsoft will also introduce similar restrictions to Azure AI’s Custom Neural Voice feature, allowing customers to create AI voices based on recordings of real people.

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Microsoft Joins Other Tech Giants to Eliminate Face Analysis Tools

Facial recognition tools have been riding high on the radar of growing privacy concerns and civil rights. Studies have shown that Face API tools misidentifies subjects, mainly females and dark-skinned individuals of both genders. These discrepancies can have serious implications in situations of surveillance or criminal activity.

Apart from Microsoft, several other companies, including Amazon AMZN, Meta Platform’s META Facebook, IBM IBM and Google, have scaled back or discontinued the use of their recognition tools.

The changes undertaken by Microsoft come two years after Microsoft, IBM, and Amazon, paused sales of facial-recognition technology to U.S. police agencies.

In 2020, Amazon decided to stop selling its facial recognition software to the police for a year. The technology had come under immense scrutiny following the Black Lives movement and nationwide protests about racism and police brutality.

Even after the expiration of the year-long moratorium in June 2021, Amazon revealed that it is indefinitely stopping the sale of its Face API to police departments.

Around the same time, IBM also stopped offering its general-purpose facial recognition software to police and otherwise. The company stopped developing or researching the technology, citing concerns about violating basic human rights, racial profiling and freedom.

By the end of last year, Meta’s Facebook announced that it would shut down its facial recognition system. It will also delete the face scan data of more than 1 billion users on its database. The decision was taken, citing regulatory uncertainties and societal concerns about the technology.

Facebook’s move was a major shift from the controversial technology incorporated in its products that notified users when they appeared in photos or videos of other people.

In 2021, Google also decided not to offer the controversial fiscal recognition technology for the time being to avoid its misuse.

When pressure is mounting on tech companies to use facial recognition algorithms with care to avoid misuse, Microsoft’s decision to restrict access to everyone and remove certain controversial features is expected to be positive.

Microsoft, which currently has a Zacks Rank #3 (Hold), is down 24.2% year to date compared with the Zacks Computer – Software industry’s fall of 28.4% and the Computer and Technology sector’s decline of 31.9%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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