When you use Microsoft's AI tools like Copilot, your prompts and the AI's responses may be used by Microsoft to improve its AI systems. This applies across Microsoft products that include AI features.
This analysis describes what Microsoft's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The statement authorizes use of user-generated content and AI interaction data for model training and improvement, which may affect users who share sensitive or confidential information through Copilot or other AI features in Microsoft products.
Interpretive note: The statement describes AI data use in general terms; the precise scope of what data is retained for training versus used only for inference is not fully specified in the document text provided.
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Users interacting with Copilot or other AI-powered Microsoft features should be aware that their inputs, queries, and the generated outputs may be used to improve Microsoft's AI models, as described in the statement. Enterprise users in particular may want to confirm whether their organization's Microsoft data processing agreement limits this use.
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"We use data to provide and improve Microsoft products, including AI and Copilot capabilities. When you use AI features, we may use your inputs and the generated outputs to improve our AI models and services. Some AI features are connected to the internet and may send your queries and content to Microsoft's servers for processing.— Excerpt from Microsoft's Microsoft Privacy Statement (Legacy)
REGULATORY LANDSCAPE: This provision engages GDPR Article 6 lawful basis requirements and Article 22 on automated decision-making; the EU AI Act imposes obligations on providers of general-purpose AI models and high-risk AI systems that may apply depending on how Copilot and related models are classified; the FTC's AI-related guidance on data use and consumer protection is also relevant. Enforcement authorities include EU data protection authorities, the UK ICO, and the FTC. GOVERNANCE EXPOSURE: High. The use of user content and interaction data for AI model training is an area of active regulatory scrutiny in the EU and increasingly in U.S. states. The statement does not specify in granular detail what data is retained for training versus discarded, which creates ambiguity for compliance teams assessing GDPR data minimization and purpose limitation requirements. JURISDICTION FLAGS: EU and UK users are subject to GDPR requirements including lawful basis, purpose limitation, and data minimization, which may constrain how broadly AI training use can be asserted. California residents may have opt-out rights if AI training constitutes use of personal information in a manner covered by CCPA. CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers should review their Microsoft Customer Agreement and applicable data processing addenda to determine whether AI training use of customer content is excluded or limited in the enterprise context. The default consumer statement may not reflect enterprise contractual carve-outs. COMPLIANCE CONSIDERATIONS: Compliance teams should assess whether consent mechanisms for AI data use are adequate under GDPR and applicable U.S. state law; review data mapping to include AI interaction data as a processing category; and evaluate whether AI-specific privacy notices are required under emerging AI transparency obligations.
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The statement authorizes use of user-generated content and AI interaction data for model training and improvement, which may affect users who share sensitive or confidential information through Copilot or other AI features in Microsoft products.
Users interacting with Copilot or other AI-powered Microsoft features should be aware that their inputs, queries, and the generated outputs may be used to improve Microsoft's AI models, as described in the statement. Enterprise users in particular may want to confirm whether their organization's Microsoft data processing agreement limits this use.
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