Microsoft announced on Thursday that it had disabled services to an Israeli army unit after an internal company review found that its artificial intelligence and cloud computing products were being used to conduct mass surveillance of Palestinians.
See also: Israel launched a spy satellite
The move follows reports from the Associated Press and the Guardian that revealed how the Israeli Defense Ministry was using Microsoft's Azure platform to support the war in Gaza and the occupation of the West Bank. Brad Smith , a Microsoft vice president, wrote in a blog post that the company is taking steps to ensure compliance with its terms of service.
An AP investigation in February showed that the Israeli military's use of Microsoft products increased significantly after a surprise attack by Hamas militants on October 7, 2023. The report cited internal Microsoft data showing that the Israelis were using GB of cloud storage and significant amounts of AI-enabled.
The AP also reported that the Israeli military was using Microsoft Azure to synthesize information gathered through mass surveillance, transcribing and translating phone calls and text messages. This information is then cross-referenced with Israel's internal AI systems to target airstrikes.
Internal Microsoft data showed that multiple Azure subscriptions were linked to Unit 8200, an elite cyberwarfare unit within the Israeli military, responsible for covert operations, signal intelligence collection, and surveillance.
See also: Bloomberg: Iran hacks cameras to monitor Israelis
Following the AP report, Microsoft acknowledged in May that it had sold advanced AI and cloud computing services to the Israeli military during the Gaza war and helped in efforts to locate and rescue Israeli hostages. However, the company said an internal review found “no evidence” that the Azure platform was used to target or harm people.
The Israeli unit used Microsoft products to support the development of an AI-enabled mass surveillance system that records, translates and analyzes millions of phone calls daily from Palestinian citizens. The report also revealed that data from the Israeli surveillance system was stored in Microsoft cloud data centers in Europe.
Following the Guardian report, Microsoft commissioned a second review by an outside law firm. While that review is still ongoing, Smith said Thursday that the investigation had uncovered evidence that its products were being used in violation of its terms of service. However, Smith did not specify which Israeli unit was losing access to Microsoft services.
See also: Cyberattack disrupts payment systems in Israel
Hossam Nasr, one of more than a dozen Microsoft employees fired or arrested after protesting the company's involvement in the Gaza war, called Thursday's announcement "a significant and unprecedented victory." But he said it wasn't enough.
