Microsoft has changed the terms of use for its Copilot AI tools. The Redmond giant now states that Copilot is designed for “entertainment purposes only.” And you should use “Copilot at your own risk.”
Do note that Copilot is a tool that is aimed at increasing productivity across Microsoft’s 365 suite of apps such as Excel and PowerPoint. The company has pushed Copilot particularly for entreprise users in the past, while also bringing the tool for consumers.
Recently, it was found that Microsoft has 78 different products with the Copilot name.
Why did Microsoft make this change?
Though it appears that the new terms of use may be intended at shifting the responsibility of the potential inaccuracy made by Copilot. As per the official Microsoft website, this change in terms of use was made in October last year.
Large Language Models (LLMs) like OpenAI’s GPT or Anthropic’s Claude, are prone to hallucinations, that is, the AI may make things up instead of actually presenting real information. While this has reduced, it still remains a problem. Microsoft’s updated terms of use does hint that the company is still cautious over potential accuracies made by AI.
The updated terms would keep Microsoft clear of any legal claims that may be caused by inaccurate information given by the AI.
You can still use Copilot for work
Microsoft is not exactly telling you to stop using Copilot for work completely. The company, in essence, is stating that it will not be held accountable for any mistakes the AI makes.
Rather, it wants you to use Copilot as a tool, and not a decision maker. The company wants users to fact-check information Copilot provides before relying on it for any important work.
Do note that most AI models do come with disclaimers regarding potential inaccuracies and mistakes it may make.
Microsoft is selling more Copilot
Microsoft has also not stopped pushing Copilot as a work productivity tool. According to a report from Bloomberg, Microsoft CEO Judson Althoff recently stated in an internal meeting that the company had hit “some pretty big audacious goals” for selling Copilot in the last quarter.
In January, the company had confirmed that only 3 per cent of its customers were paying for Copilot as of December 31, 2025.
Earlier this year, the company introduced Copilot Cowork to further boost productivity with AI. Copilot Cowork is built on Anthropic’s Claude Cowork – the tool that rattled SaaS companies like TCS and Infosys.
The company has also used terms like “vibe working” – the use of AI to do work – while marketing Copilot in the past.
