Microsoft Copilot Terms of Service

This is Microsoft's main legal agreement covering your use of services like Copilot, Xbox, OneDrive, Outlook, and other Microsoft consumer products. The most important thing to know is that if you're in the US, you give up your right to sue Microsoft in court as part of a class action — disputes must go through individual binding arbitration instead. If you want to opt out of arbitration, you must do so in writing within 30 days of first accepting the agreement.

The Microsoft Services Agreement governs consumer use of Microsoft's services — including Copilot, Xbox, OneDrive, Outlook, Skype, and related products — and is legally grounded in contract law with governing law and jurisdiction varying by region (Washington State law for US users, with binding arbitration and class action waiver for US disputes). The agreement imposes significant obligations on users including compliance with a Code of Conduct, restrictions on reverse engineering, and grants Microsoft a broad royalty-free license to use content users submit to or through the services. Notably, the agreement includes a mandatory binding arbitration clause with class action waiver for US users, an express reservation of rights to modify or discontinue services at any time with limited notice, and a broad content license that extends to user-generated content processed by AI features including Copilot. The document engages GDPR (for EEA users), CCPA (for California residents), COPPA (for users under 13), and the EU AI Act insofar as Copilot constitutes a general-purpose AI system; the FTC has primary enforcement authority over unfair or deceptive practices in the US. Material compliance considerations include the adequacy of consent mechanisms for AI-processed content, the enforceability of the arbitration clause post-Viking River Cruises, and age verification obligations under COPPA given Copilot's accessibility to minors.