Microsoft Vice Chair and President Brad Smith has cautioned that tighter US immigration restrictions targeting highly skilled foreign workers could weaken America’s technology leadership and discourage the next generation of artificial intelligence and software engineering talent from building their careers in the country.

Speaking to POLITICO during the International AI Summit in Dublin, Ireland, Smith expressed concern over the Trump administration’s decision to restrict permanent residency applications for skilled foreign employees working at Microsoft and seven other companies.

According to Smith, policies that make it harder for talented professionals to secure long-term status in the United States risk sending a negative signal to highly qualified engineers and AI specialists who may instead choose competing technology hubs in other parts of the world.

His comments followed an announcement by US Vice President JD Vance that Microsoft and seven other companies would be prevented from seeking green cards for skilled foreign workers while authorities investigate allegations of visa-related misconduct.

Smith strongly rejected those accusations, describing the claims against Microsoft as “completely off base”. He argued that the administration had been presented with inaccurate information regarding the company’s immigration and employment practices.

He said the overwhelming majority of Microsoft’s green card applications involve long-serving employees rather than newly recruited workers. According to Smith, the large number of applications primarily reflects extensive delays and backlogs within the US permanent residency system rather than an aggressive hiring strategy focused on overseas recruitment.

Responding to allegations that foreign-born workers are paid less than US employees, Smith said Microsoft operates a single compensation framework for employees performing comparable roles. He stated that salary structures are determined by job responsibilities and performance rather than immigration status.

The Microsoft executive also highlighted the company’s domestic hiring efforts, noting that Microsoft recruited more than 9,000 US-born employees during the previous year. He argued that this aspect of the company’s workforce record has largely been overlooked amid criticism from the administration.

Smith further pointed to the historic role immigrants have played in driving American technological innovation. He noted that five of the six individuals recently recognised with national technology and science medals by President Donald Trump had originally come to the United States as immigrants.

He argued that immigrant innovators have made enormous contributions to American economic growth, technological progress, productivity and living standards, warning against policies that could reduce the country’s ability to attract similar talent in the future.

The dispute comes at a time when competition for AI expertise is intensifying worldwide, with governments and technology companies increasingly competing to attract highly skilled researchers, engineers and software developers. Industry leaders have frequently argued that access to global talent remains a critical factor in maintaining technological competitiveness.

Microsoft had previously defended its employment practices in a statement issued on October 8. The company said the vast majority of its US workforce consists of American citizens and noted that roughly 80 per cent of approximately 6,000 H-1B applications submitted during the previous fiscal year were intended to extend or modify the status of existing employees rather than bring in new workers.

The controversy also coincided with Trump awarding the National Medal of Technology and Innovation to Microsoft Chief Executive Officer Satya Nadella, an Indian-origin technology leader who previously held an H-1B visa before rising to the top of one of America’s most influential technology companies.

While openly criticising the administration’s immigration measures, Smith nevertheless welcomed its efforts to address AI safety and oversight. He specifically praised measures aimed at strengthening controls around advanced AI technologies, including export restrictions imposed on Anthropic’s AI models.

The debate highlights a growing policy divide in Washington over how the United States should balance immigration enforcement, protection of domestic employment and the need to secure global talent in strategically important sectors such as artificial intelligence, advanced software development and emerging technologies.

ANI