Trust but Verify Your Data in Microsoft’s AI Services

• The Microsoft Generative AI Services clause explains Microsoft’s terms for customers using its AI services, use of their data, and ownership of the output.
• Microsoft offers AI copyright protection, but few customers will meet the conditions required to use it.
• Compliance with Microsoft’s terms will likely require additional services and costs, plus training and education for employees.

The explosion of AI has raised customers’ concerns regarding how their data is used by Microsoft and who has ownership rights to the output. Consequently, Microsoft added the Microsoft Generative AI Services clause to its terms, confirming it will not train AI models on customer data and that customers own their output content. Furthermore, Microsoft offers to protect customers against claims of copyright infringement that arise from using Microsoft’s AI products. To take advantage of these protections, customers must meet significant requirements spanning governance, education, and technology. As a result, most customers are unlikely to ever be able to use the Generative AI Services clause protection and should still consult their own legal counsel to determine their risk exposure.