Over the weekend, Microsoft Copilot was, once again, trending for the wrong reasons. Microsoft’s terms of use for the AI-powered tool (which was seemingly last updated on October 24, 2025) indicated that: "Copilot is for entertainment purposes only. It can make mistakes, and it may not work as intended. Don’t rely on Copilot for important advice. Use Copilot at your own risk."
Copilot's terms of use have sparked controversy across social media, with some suggesting that Microsoft isn't confident in its offering and that the language could be a cover story to save face in case things go wrong.
However, a Microsoft spokesperson speaking to PCMag dismissed the claims: "The phrasing is legacy language from when Copilot originally launched as a search companion service in Bing. As the product has evolved, that language is no longer reflective of how Copilot is used today and will be altered with our next update."
Interestingly, this disclaimer isn't unique to Microsoft Copilot. As highlighted by our sister site Tom's Hardware, it's consistent across other AI chatbots. For instance, OpenAI's terms of use indicate that "You accept and agree that any use of outputs from our service is at your sole risk, and you will not rely on output as a sole source of truth or factual information, or as a substitute for professional advice."
It's evident that generative AI is a tough industry to venture into, particularly because of its ever-evolving nature and the vast resources required to keep up with trends. Wall Street experts and analysts recently warned that investor interest in the category is rapidly waning, citing Big Tech's inability to map out a clear path to profitability.
While announcing Microsoft's financial earnings report for FY26 Q2, CEO Satya Nadella indicated that Copilot's daily user base has grown “nearly 3x year-over-year.” However, a separate report revealed that only 3.3% of Microsoft 365 and Office 365 users who interact with Copilot actually pay for it.
Late last month, the tech giant lost approximately a quarter of its value in the first three months of the year, its steepest quarterly drop since the 2008 financial crisis. However, the company isn't giving up on its AI ambitions as it already has elaborate plans to invest about $146 billion in infrastructure in 2026, which is approximately twice last year’s $88 billion.
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