Microsoft Under Fire as Activision’s AI-Powered Call of Duty: Black Ops 7 Sparks Government Scrutiny

Microsoft finds itself in the crosshairs of regulators after Activision Blizzard deployed cutting-edge AI in Call of Duty: Black Ops 7—because nothing says 'responsible innovation' like letting algorithms loose in a military shooter.

The tech giant's gaming division pushed boundaries with neural-network-driven NPCs, but lawmakers are now asking if they crossed the line. Early reports suggest the AI exhibits 'unpredictable combat behaviors'—which sounds suspiciously like Wall Street's trading algorithms.

While Microsoft stock barely flinched at the news, the FTC has reportedly opened a preliminary inquiry. Because when it comes to AI governance, Washington always arrives fashionably late to the party—right after the tech's already deployed and the VC money's cashed out.

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Khanna commented on this controversy on X, formerly Twitter, when he stated, “We need regulations that prevent companies from using AI to eliminate jobs to extract greater profits. Artists at these companies need to have a say in how AI is deployed. They should share in the profits. And there should be a tax on mass displacement.”

Call Of Duty: Black Ops 7 isn’t the first game to catch flak for its use of AI. ARC Raiders faced a similar controversy earlier this month over its use of AI-generated voices in the game. However, the player count for that game remains high, suggesting the majority of players aren’t concerned about the use of AI in the game. This could also be true for Black Ops 7, though players have also voiced several other complaints about that game not related to AI that could damage its player count.

Microsoft Stock Movement Today

Microsoft stock was down 0.31% on Monday but was still up 21.33% year-to-date. The stock has also rallied 22.71% over the past 12 months. Interestingly, a large percentage of MSFT stock’s gains is tied to the company’s investments in AI.

Is Microsoft Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 35 Buy ratings over the past three months. With that comes an average MSFT stock price target of $632.07, representing a potential 24.25% upside for the shares.