A proposal motivated by concerns about how Microsoft products were allegedly used by Israel's military in the Gaza war was rejected by shareholders on Friday.

The Religious of the Sacred Heart of Mary, an international Catholic women's organisation, was the lead filer of the resolution, which called on Microsoft to assess the effectiveness of its human rights due diligence processes (HRDD).

"Recent allegations of severe customer misuse suggest Microsoft’s HRDD may be ineffective," the proposal read.

"Several reports have alleged Israel’s use of Microsoft’s Al and cloud services and technologies in its

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