Online Product Terms Add Generative AI Language

• Microsoft’s product terms for online services have been updated to describe acceptable use of its generative AI services.
• Use of generative AI comes with both restrictions and risks of data exposure.
• Microsoft’s many statements appear contradictory, so customers should take care in their use of its generative AI services.

Generative AI is an artificial intelligence capability that can create, on the basis of a user prompt, entirely new and unique content. Microsoft leverages generative AI features in its Azure OpenAI service, in Copilot services (including Windows Copilot, Microsoft 365 Copilot, GitHub Copilot, and others), in Bing Chat and Bing Chat Enterprise, and elsewhere. The company has begun to adjust its licensing terms for enterprises to account for the unique capabilities and risks of the technology.

(Note: Although this report discusses general observations about these product terms, nothing in this report should be construed as legal advice and readers are advised to check their particular circumstances with legal counsel.)