- Microsoft's venture capital arm invested $10 million in a facial recognition startup called AnyVision used by the Israeli military at border crossing checkpoints to log the faces of Palestinians crossing into Israel.
- Microsoft recently hired former US Attorney General Eric Holder to investigate whether the startup adheres to Microsoft's ethical principles for facial recognition after NBC reported AnyVision's technology is also secretly used to monitor Palestinian residents in the West Bank.
- Microsoft President Brad Smith said the company "won't continue" its relationship with AnyVision is the investigation fails to prove the startup complies with Microsoft's principles.
- Microsoft has yet to respond to a request about how exactly Microsoft might end its relationship with AnyVision, but Smith said M12, Microsoft's venture capital arm, negotiated an option to audit AnyVision's adherence its principles when it made an investment.
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Microsoft President Brad Smith said the company "won't continue" its relationship with the Israeli facial recognition company it invested in if an investigation shows the startup did not adhere to Microsoft's ethical principles for facial recognition.
Microsoft last month confirmed it has hired former US Attorney General Eric Holder to investigate AnyVision – whose technology is used by the Israeli military at border crossing checkpoints to log the faces of Palestinians crossing into Israel – and find out whether it complies with principles including around lawful surveillance.
"We'll either satisfy ourselves that, in fact, AnyVision's technology is being used in conformance with our principles and, if so, we will stand publicly and say that is, in fact, what AnyVision is doing," Smith said during the company's annual shareholders meeting, "but if, in fact, our audit shows something different – if we're not able to get to the bottom of this to our satisfaction – then we've been clear and we won't continue with the relationship we've had."
Microsoft declined to provide information about how exactly Microsoft might end its relationship with AnyVision, but Smith said M12, Microsoft's venture capital arm, negotiated an option to audit AnyVision's adherence to those ethical principles when it recently made a $10 million investment in the company.
The investigation
Microsoft has worked to establish itself as a leader in tech industry ethics, including by publishing in December six principles to guide its facial recognition work.
M12, Microsoft's venture capital arm, recently announced that it would contribute to a $78 million Series A funding round for AnyVision. Smith disclosed during the shareholder meeting that Microsoft contributed $10 million to the round. Microsoft's investment drew immediate backlash from human rights advocates including the ACLU.
News reports, however, suggest that the technology is also secretly used to monitor Palestinian residents in the West Bank. AnyVision has denied that it uses facial recognition for surveillance in the West Bank.
As part of the deal, Smith said AnyVision agreed to adhere to Microsoft's ethical principles.
"One of those principles says it won't be used for mass surveillance, especially mass surveillance outside certain safeguards that really involve the protection of human rights and the application of the rule of law," Smith said. "NBC has reported from Israeli that AnyVision's technology is being used in the West Bank and on the Gaza Strip in ways that have raised real questions about whether our principles are being complied with."
Microsoft hired Holder will lead a team of former federal prosecutors at law firm Covington & Burling to investigate how AnyVision's technology is being used.
"They will move quickly, reviewing documents and conducting on-the-ground interviews with AnyVision employees and others to ensure a full and thorough investigation," a Microsoft spokesperson previously said in a statement.
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