Microsoft has changed the terms of use for the Copilot AI tool. The Redmond giant now says Copilot is designed for “entertainment purposes only.” And use Copilot at your own risk.
Note that Copilot is a tool aimed at improving productivity across the Microsoft 365 app suite, including Excel and PowerPoint. While the company has promoted Copilot specifically for enterprise users, it has also offered the tool to consumers.
It was recently discovered that Microsoft has 78 different products named Copilot.
Why did Microsoft make this change?
However, the new terms and conditions appear to be aimed at shifting responsibility for potential inaccuracies by Copilot. According to Microsoft’s official website, this change to the terms of service was made in October last year.
Large-scale language models (LLMs) such as OpenAI’s GPT and Anthropic’s Claude are prone to hallucinations. This means that the AI may be making something up instead of actually presenting you with real information. Although this has decreased, it remains a problem. Microsoft’s updated terms of service suggest that the company remains wary of the potential precision brought about by AI.
The updated terms will protect Microsoft from legal claims that may result from inaccurate information provided by AI.
Copilot can still be used for work
Microsoft isn’t exactly telling you to stop using Copilot at work completely. In short, the company is saying it is not responsible for mistakes made by its AI.
Rather, we want you to use Copilot as a tool, not as a decision maker. The company wants users to fact-check the information provided by Copilot before relying on it for important tasks.
Note that most AI models include disclaimers regarding potential inaccuracies and mistakes.
Microsoft is selling more Copilot
Microsoft also hasn’t stopped promoting Copilot as a work productivity tool. Microsoft CEO Judson Althoff recently said in an internal meeting that the company achieved “some pretty big, bold goals” for Copilot sales last quarter, Bloomberg reported.
The company acknowledged in January that only 3% 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, a tool that has shaken up SaaS companies like TCS and Infosys.
The company has also used terms such as “vibeworking” (using AI to do work) when marketing Copilot in the past.
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