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Microsoft Copilot
· Microsoft Copilot Terms of Service
U.S. residents must attempt informal resolution for 60 days before initiating binding individual arbitration through JAMS under the Federal Arbitration Act; class actions, representative proceedings, and public injunction requests are prohibited. The arbitrator's decision is final except for limited FAA review, and courts retain authority only over arbitrability questions and enforcement of the class action prohibition....
Why it matters: This provision requires U.S. users to resolve disputes through individual JAMS arbitration rather than through court proceedings, and prohibits participation in class action lawsuits or representative actions. The terms establish a pre-arbitration notice requirement, a 60-day informal resolution period, and specific JAMS procedural rules that govern the arbitration process including a staged batch process for related cases involving 25 or more similarly situated claimants represented by coordinating counsel....
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Microsoft Copilot
· Microsoft Copilot Terms of Service
Users are prohibited from using Microsoft AI services outputs, or any data derived from those services, to create, train, or improve any AI technology, whether directly or indirectly....
Why it matters: This provision restricts downstream use of AI service outputs across all Microsoft consumer AI services, including Copilot. The prohibition covers both direct and indirect use for AI training or improvement purposes, which may affect users who integrate Microsoft AI outputs into workflows that include machine learning pipelines, dataset construction, or AI model fine-tuning....
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Microsoft Copilot
· Microsoft Copilot Terms of Service
The agreement caps recoverable damages at one month of service fees for paid services, or ten dollars for free services, and prohibits recovery of consequential, lost profits, special, indirect, incidental, or punitive damages. This cap applies to all claims related to the terms, services, or associated software....
Why it matters: This provision establishes the maximum financial exposure Microsoft and its affiliates, resellers, distributors, and vendors accept under these terms. The damage cap applies to all covered claims regardless of the nature of the loss, including data loss, service unavailability, or breach of the agreement....
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Microsoft Copilot
· Microsoft Copilot Terms of Service
The agreement prohibits nine specific categories of AI service use, including consequential automated decision-making without human oversight, deception and subliminal manipulation, social scoring, biometric categorization for protected attributes, facial recognition database creation through untargeted scraping, real-time facial recognition by law enforcement, and emotional state inference from physical or behavioral characteristics....
Why it matters: This provision establishes specific prohibited use cases for all Microsoft AI services, including Copilot, that reflect requirements aligned with high-risk AI use categories identified in the EU AI Act. The nine enumerated prohibitions create defined compliance obligations for all users of covered AI services and may interact with enterprise AI governance frameworks....