Microsoft Updates Consumer Services Agreement, Clarifies Copilot and AI Terms
WASHINGTON – Microsoft is updating its Services Agreement governing consumer online products and services, with revised terms taking effect September 30, 2026. Among the changes are updated provisions addressing Microsoft Copilot and other AI-powered services, along with revisions reflecting changes across the company’s consumer products.
Microsoft began notifying customers of the update by email, telling users the changes are intended to make its terms clearer, improve transparency and account for new products, services and features. The Microsoft Services Agreement applies to consumer services covered by the agreement rather than generally governing Microsoft’s enterprise and organizational customers.
Copilot and AI Services Get Additional Attention
One of the more notable areas of the updated agreement involves Microsoft Copilot. Microsoft says it has renamed and revised the Copilot section to clarify which versions of Copilot are governed by the consumer Services Agreement. This distinction has become increasingly important as Microsoft incorporates Copilot across consumer, business and enterprise products that may operate under different agreements.
The agreement also contains specific provisions governing Microsoft’s AI services. Among other restrictions, users may not attempt to reverse engineer AI models or extract underlying components, weights or other model information. Microsoft also restricts certain uses of data from its AI services for creating, training or improving other AI systems. The terms additionally address Microsoft’s processing and storage of information submitted to and generated by AI services, including for monitoring and preventing abusive or harmful uses.
Other Microsoft Services Are Being Updated
The September update extends beyond artificial intelligence. According to Microsoft’s summary of changes, the company has revised language involving automatic software updates, updated Microsoft 365 product terminology, removed outdated references to services including Cortana and Groove, and made changes involving the Microsoft Rewards program.
Microsoft also revised introductory language describing the products, websites and services covered by the agreement. Many of the changes appear to be clarifications or updates reflecting Microsoft’s evolving product lineup rather than major changes to how customers use its services.
Continued Use Constitutes Agreement
Microsoft says customers who continue using covered products and services on or after September 30, 2026 will be agreeing to the updated Services Agreement. Customers who do not agree with the new terms can discontinue using the affected products and services and close their Microsoft account before the changes become effective. The company is giving customers roughly two months between publication of the revised agreement and its effective date.
For most Microsoft users, the update is unlikely to produce an immediate noticeable change. However, the expanded attention given to Copilot and AI services demonstrates how artificial intelligence is increasingly becoming a formal part of the legal agreements governing everyday consumer technology.
About The Author: John Colascione is Chief Executive Officer of SEARCHEN NETWORKS®. He specializes in Website Monetization, is a Google AdWords Certified Professional, authored a how-to book called ”Mastering Your Website‘, and is a key player in several online businesses.
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