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
This provision establishes the operational scope of data collection tied to AI feature use and clarifies Microsoft's authority to repurpose collected data for both product improvement and model training purposes. The provision's significance derives from the breadth of data types collected (prompts, outputs, usage data) and the multiple authorized uses, with user controls limited to specific model training scenarios.
The updated policy establishes additional grounds on which Microsoft may retain personal data. While the prior version tied retention to specific user expectations and available deletion controls, the revised language authorizes retention for 'operating our business, meeting our contractual and legal obligations, improving and developing our products and services, protecting the safety and security of our systems and customers, and resolving disputes.' This expands the stated purposes beyond transaction fulfillment and legal compliance. The updated policy directs users to product-specific documentation for retention details rather than providing explicit deletion procedures and timelines in the privacy statement itself.
View change record →The updated policy now grounds data retention in five broad business purposes: operating the business, meeting contractual and legal obligations, improving and developing products and services, protecting system and customer safety, and resolving disputes. Previously, the policy articulated specific criteria for determining retention periods, including customer expectations for retention until manual deletion, availability of automated deletion controls, and data sensitivity. The revised language removes these granular criteria and instead requires users to consult individual product documentation to understand when their specific data will be deleted. This shifts the burden of finding retention timelines from the main policy statement to separate product-specific documents.
View change record →The updated Privacy Statement removes previously stated language about additional rights available to European Economic Area users, narrowing the policy's explicit protections in that region. Simultaneously, the revised terms now explicitly authorize Microsoft to contact users via auto-dialer and prerecorded voice for marketing purposes, provided the user has consented to receive marketing communications to the phone number supplied. This establishes Microsoft's contractual permission to initiate automated marketing calls using artificial intelligence-generated voice technology where user consent to marketing contact has been given.
View change record →Users operating AI features consent to collection of prompts and outputs as a condition of service use. Microsoft retains discretion to apply this data to improve AI features across its product line, with the ability to opt out of model training use only where the applicable product provides such controls.
How other platforms handle this
We are simplifying our Terms of Use, including clarifications around the use of AI tools, and their data use. We have moved the terms that describe AI Features, which were previously written for a Creator audience and located under the AI-Based Tools Supplemental Terms and Disclaimer, into the User ...
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"When you use AI features, we collect your prompts and the AI-generated results, as well as related product usage data. We use this data to operate and improve AI features. Depending on the product, Microsoft may also use this data to train and improve AI models. We will tell you in the product if Microsoft uses your data for AI model training and give you controls to turn off this use. You can also review our product-specific privacy details below for more information.— Excerpt from Microsoft's Microsoft Privacy Statement (Legacy)
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This provision establishes the operational scope of data collection tied to AI feature use and clarifies Microsoft's authority to repurpose collected data for both product improvement and model training purposes. The provision's significance derives from the breadth of data types collected (prompts, outputs, usage data) and the multiple authorized uses, with user controls limited to specific model training scenarios.
Users operating AI features consent to collection of prompts and outputs as a condition of service use. Microsoft retains discretion to apply this data to improve AI features across its product line, with the ability to opt out of model training use only where the applicable product provides such controls.
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