The tech giant's president and chief legal officer has been outspoken about his concerns surrounding the new technology and how it could be used by governments in ways that result in "unfair bias and discrimination".
Now, he has explained there are some key issues to consider when it comes to what action to take to prevent misuse while looking into the potential benefits.
He told The Guardian newspaper: "The first question one should ask is why, why is this happening? It is a technology that can be deployed in, literally, an Orwellian fashion. "But I think whenever you want to ban a technology, you also have to ask, well, what are the potentials for it to do good as well? And so then the question is how do you strike the balance?
"I don't think that you strike that balance by banning all use. You strike that balance by banning the harmful use."
Smith has also reiterated his stance, and he confirmed Microsoft won't let their services be used for mass surveillance.
He added: "So if we thought that the US government or that [US immigration agency] Ice was going to deploy facial recognition for mass surveillance, we would object to that and I don't think we would do it.
"If an agency in any government wants to deploy facial recognition in a manner that we believe will result in unfair bias and discrimination, that's something that we won't do."