Redmond: Microsoft’s terms of use for Copilot describe the AI assistant as “for entertainment purposes only.” The clause, last updated October 24, 2025, also warns users not to rely on Copilot for important advice and to use it at their own risk.
The timing is awkward. Bloomberg reported this week that Microsoft has been aggressively pushing Copilot to corporate customers after pressure from Wall Street to hit ambitious revenue targets. The company is actively selling Copilot as a productivity tool across enterprise accounts. Its own terms say the opposite.
Microsoft has acknowledged the contradiction. A spokesperson told PCMag the language is “legacy” and no longer reflects how Copilot is used today. The company said it will update the terms in the next scheduled revision.
The disclaimer did not emerge in isolation. Both OpenAI and xAI carry similar language in their terms of service, cautioning users not to rely on their models’ outputs for consequential decisions. The practice is widespread across the AI industry, a legal hedge against liability that sits uneasily alongside aggressive commercial marketing.
The gap between what AI companies state in their terms and what they promise in sales pitches is becoming harder to ignore. As enterprises embed AI tools deeper into their workflows, scrutiny is increasing. Questions about what these products are actually warranted to do are now carrying legal and regulatory weight.
Microsoft has not provided a timeline for when the updated language will go live. Until then, the world’s second most valuable company is technically selling a productivity assistant it describes as entertainment.
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