Walmart’s AI Plans with Microsoft Accidentally Leaked During Build 2025 Protest

If you're wondering about Walmart's artificial intelligence (AI) strategy and how it involves Microsoft, the latest events at Microsoft Build 2025 just gave us an unplanned sneak peek. During a live session focused on AI security, Microsoft’s head of AI security, Neta Haiby, unintentionally revealed confidential internal messages about Walmart’s upcoming use of Microsoft’s AI tools—specifically Entra Web and AI Gateway—after a protest disrupted the presentation. This accidental leak has not only drawn attention to Microsoft’s enterprise AI services but has also raised fresh concerns about privacy, cloud computing, and corporate transparency.

What Happened at Microsoft Build 2025?

The disruption occurred during a session co-led by Neta Haiby and Sarah Bird, Microsoft’s head of responsible AI. The session, which was supposed to cover best practices in securing AI systems, was interrupted by two former Microsoft employees protesting the company’s ongoing cloud contracts with the Israeli Ministry of Defense. The livestream was briefly muted, and cameras were turned away as the protest unfolded. Once the situation was under control, Haiby accidentally shared her Microsoft Teams window while screen-sharing, unintentionally revealing sensitive internal messages.

These messages detailed Walmart’s plans to deepen its use of Microsoft’s AI infrastructure. A Microsoft cloud solution architect commented, “Walmart is ready to rock and roll with Entra Web and AI Gateway,” and a Walmart AI engineer praised Microsoft’s capabilities, stating, “Microsoft is WAY ahead of Google with AI security. We are excited to go down this path with you.” This insight sheds light on Walmart’s alignment with Microsoft Azure and its AI offerings, positioning Microsoft as a top-tier AI partner for large retailers.

Protest Highlights Ethical Concerns in Tech

The protest was led by Hossam Nasr and Vaniya Agrawal—both former Microsoft employees. Nasr directly accused Microsoft of complicity in violence in Gaza, saying, “How dare you talk about responsible AI when Microsoft is fueling genocide in Palestine?” The protest was part of a broader campaign by the activist group No Azure for Apartheid, which has repeatedly targeted Microsoft’s Build events. Just a day earlier, a different activist interrupted Microsoft’s CoreAI session, and earlier this month, Agrawal disrupted the company’s 50th-anniversary celebration.

This marks the third protest during Build 2025, signaling growing unrest among tech workers and advocacy groups regarding the ethics of AI deployment in military and governmental contracts. These actions are intensifying pressure on Microsoft to re-evaluate its partnerships and improve transparency around the use of its AI technologies.

Microsoft's Official Response and AI Ethics Policy

In response to the growing backlash, Microsoft announced it had conducted an internal review—supported by an unnamed third-party firm—to evaluate the usage of its AI and cloud tools in global conflicts. Microsoft insists its relationship with Israel’s Ministry of Defense is purely commercial and compliant with its AI Code of Conduct. According to a company spokesperson, there is “no evidence” that its technologies have been used to harm civilians or violate ethical standards.

However, critics argue that these internal reviews lack accountability and independent oversight. With high-value clients like Walmart betting big on Microsoft’s AI solutions, this incident underscores the complex balance between innovation, ethics, and corporate responsibility.

What This Means for AI in Retail and Enterprise Security

Walmart’s investment in Microsoft Entra and AI Gateway is a clear signal of where enterprise AI is headed. These tools are designed to offer secure identity and access management, advanced threat detection, and streamlined AI model integration—key priorities for large retailers looking to scale intelligent automation. As retailers and enterprise clients look to harness AI for customer engagement, supply chain optimization, and fraud detection, partnerships with trusted AI providers like Microsoft will only grow more critical.

However, this incident also serves as a cautionary tale. Enterprises considering similar collaborations must weigh the benefits of cutting-edge AI tools against the potential risks of vendor transparency, ethical concerns, and public perception.