Volkswagen Group has rolled out Microsoft Copilot to more than 330,000 employees as the automaker expands its use of artificial intelligence. The move comes as the company faces reports of a proposed salary freeze for around 660,000 employees worldwide through 2030.
Microsoft announced the AI rollout on Wednesday, describing it as part of Volkswagen’s gradual adoption of AI tools in the workplace. Separately, Reuters reported that Volkswagen was considering a salary freeze, citing the company’s Global Works Council. Volkswagen has not confirmed the proposal.
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The developments come as the German automaker looks to expand the use of AI across its workforce while facing discussions over labour costs between management and employee representatives.
Volkswagen started its Copilot rollout with Copilot Chat, Microsoft’s AI-powered chat service, which has since reached more than 300,000 monthly active users at the automaker, according to Microsoft. The company has now expanded its use of the tool with Work IQ, which supports more advanced tasks and integrates AI into business processes.
Employees are using the tools across departments, including engineering, production, procurement and sales. More than 26,000 AI agents were also active across Volkswagen Group in the month before the announcement.
Sophie Vassarotti, Volkswagen’s head of group data and AI, said the goal is to provide secure AI support to employees at scale, helping them work more efficiently and make better-informed decisions. Agnes Heftberger, chair of the management board of Microsoft Germany, said the rollout brings AI into employees’ daily work and could allow them to focus on higher-value tasks.
While the reported salary freeze could affect around 660,000 Volkswagen employees worldwide through 2030, according to Reuters, which cited the company’s Global Works Council. German newspaper Süddeutsche Zeitung first reported the proposal, saying it could also cover bonuses, special payments, employee benefits and jobs. The newspaper estimated that the lack of pay raises could reduce employees’ purchasing power by around 10% over the period because of inflation.
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Volkswagen has not confirmed the plan, and a company spokesperson described the reports as speculation, according to Reuters.
As Volkswagen expands its use of AI across its workforce, the reported salary freeze points to the cost pressures facing the automaker. While Microsoft says Copilot is helping employees work more efficiently across different departments, it remains unclear whether the wider adoption of AI will have any direct impact on Volkswagen’s labour costs or future employment decisions.