Microsoft 365 AI Footnotes
What Microsoft 365's AI features do with your data, as Microsoft 365 publishes it. Checked October 31, 2026.
Agent access
Work IQ MCP, Microsoft's MCP server for Microsoft 365 data and Copilot, is generally available as part of the Work IQ API, which also offers A2A and REST endpoints for agents. source, source 2, source 3, source 4, source 5 · checked October 31, 2026
Stage: generally available. Authentication: Microsoft Entra ID delegated authentication (OAuth); application-only authentication is not supported; MCP clients discover it through the /.well-known/oauth-protected-resource endpoint
Microsoft Copilot (formerly Microsoft 365 Copilot)
Microsoft Copilot add-on license; included in Microsoft 365 E7
| On by default? | Not published as of October 31, 2026 |
|---|---|
| How an admin turns it off | Licenses are assigned to users in the Microsoft 365 admin center. source · checked October 31, 2026 |
| Trains on customer data? | Prompts, responses and data accessed through Microsoft Graph are not used to train foundation models. source · checked October 31, 2026 |
| Retention | Prompts and responses are stored as Copilot activity history; admins set retention with Microsoft Purview retention policies. source · checked October 31, 2026 |
| Where data is processed | EU users' traffic stays within the EU Data Boundary; other traffic can be processed in the EU and other regions. source · checked October 31, 2026 |
| Model providers | Anthropic and OpenAI models that an admin can choose to use, and other models hosted and operated by Microsoft. source · checked October 31, 2026 |
| Price | Add-on: $30.00 per user per month, paid yearly ($31.50 paid monthly, annual commitment). source · checked October 31, 2026 |
Microsoft Copilot Chat (formerly Microsoft 365 Copilot Chat)
Included with eligible Microsoft 365 licenses
| On by default? | Pinned by default to the navigation bar of Microsoft 365 apps for most eligible users. source · checked October 31, 2026 |
|---|---|
| How an admin turns it off | Microsoft 365 admin center > Integrated Apps: block the Copilot app, tenant-wide or for specific users or groups. source · checked October 31, 2026 |
| Trains on customer data? | Prompts and responses are not used to train the underlying foundation models. source · checked October 31, 2026 |
| Retention | Prompts and responses are logged; the same Purview retention policies as Microsoft Copilot apply. source · checked October 31, 2026 |
| Where data is processed | EU users' traffic stays within the EU Data Boundary; other traffic can be processed in the EU and other regions. source · checked October 31, 2026 |
| Model providers | OpenAI-operated models (OpenAI as a sub-processor) are enabled for all users of eligible commercial customers unless an admin selects No users. source · checked October 31, 2026 |
| Price | Included with eligible Microsoft 365 licenses. source · checked October 31, 2026 |
Microsoft Copilot in Teams meetings and events
Microsoft Teams, with the Microsoft Copilot add-on license
| On by default? | On by default for licensed users: the default policy value is On with saved transcript required. source · checked October 31, 2026 |
|---|---|
| How an admin turns it off | Teams admin center > Meetings > Meeting policies > Recording & transcription > Copilot (or Set-CsTeamsMeetingPolicy -Copilot). source · checked October 31, 2026 |
| Trains on customer data? | Copilot activity history, including Teams meetings, is not used to train foundation models. source · checked October 31, 2026 |
| Retention | In Only during the meeting mode, speech-to-text data is not saved after the meeting; in Commercial and GCC, Purview policies may still retain prompts and responses. source · checked October 31, 2026 |
| Where data is processed | Not published as of October 31, 2026 |
| Model providers | Not published as of October 31, 2026 |
| Price | Requires the Microsoft Copilot add-on license. source · checked October 31, 2026 |
Intelligent recap
Teams Premium or Microsoft Copilot license
| On by default? | Automatically available to users with a Teams Premium or Microsoft Copilot license when transcription is on. source · checked October 31, 2026 |
|---|---|
| How an admin turns it off | Teams admin center > Recording & transcription meeting policies; intelligent recap requires transcription. source · checked October 31, 2026 |
| Trains on customer data? | Customer data is not logged or used for AI model training or testing. source · checked October 31, 2026 |
| Retention | Recap content follows the meeting recording retention policy. source · checked October 31, 2026 |
| Where data is processed | Data stays in the geographic region of the Microsoft 365 tenant; multi-geo is supported. source · checked October 31, 2026 |
| Model providers | AI-generated notes and tasks use an OpenAI GPT model run by Microsoft through Azure OpenAI Service. source · checked October 31, 2026 |
| Price | Teams Premium add-on: $10.00 per user per month, paid yearly. source · checked October 31, 2026 |
Copilot Studio agents
Microsoft Copilot Studio
| On by default? | Not published as of October 31, 2026 |
|---|---|
| How an admin turns it off | Only global and Power Platform administrators can turn generative AI features on or off for environments outside the United States. source · checked October 31, 2026 |
| Trains on customer data? | Not published as of October 31, 2026 |
| Retention | Microsoft Purview retention policies cover Copilot Studio prompts and responses. source · checked October 31, 2026 |
| Where data is processed | EU Data Boundary applies to tenants with an EU or EFTA billing address whose environments are all in an EU Data Boundary region. source · checked October 31, 2026 |
| Model providers | OpenAI GPT models (GPT Chat Latest on the standard harness) and Anthropic Claude models, with Anthropic as a Microsoft sub-processor; makers can also add external models from Anthropic, xAI or Mistral. source, source 2, source 3 · checked October 31, 2026 |
| Price | Consumption in Copilot Credits: capacity packs of 25,000 credits at $200.00 per pack per month, or a pay-as-you-go meter. source · checked October 31, 2026 |
Anthropic models in Microsoft Online Services
Microsoft Copilot, Researcher, Copilot Studio, Power Platform and Copilot in Microsoft 365 apps
| On by default? | On by default for most commercial cloud customers; off by default in the EU, EFTA and UK. source · checked October 31, 2026 |
|---|---|
| How an admin turns it off | Microsoft 365 admin center > Copilot > Settings > AI providers operating as Microsoft subprocessors > Disable Anthropic as a Microsoft subprocessor. source · checked October 31, 2026 |
| Trains on customer data? | For Anthropic models with Data Retention, Anthropic does not use retained data for training without express permission. source · checked October 31, 2026 |
| Retention | Anthropic models with Data Retention (opt-in, off by default): Anthropic stores most inputs and outputs for up to 30 days. source · checked October 31, 2026 |
| Where data is processed | Excluded from the EU Data Boundary and, where applicable, in-country processing commitments. source · checked October 31, 2026 |
| Model providers | Anthropic, as a Microsoft sub-processor. source · checked October 31, 2026 |
| Price | Not published as of October 31, 2026 |
Connections to outside MCP servers
Copilot Studio agents connect to outside MCP servers (generally available since May 29, 2025), and declarative agents for Microsoft Copilot can add an MCP server as a plugin; admins govern MCP servers in the Microsoft 365 admin center under Agents > Tools. source, source 2, source 3, source 4 · checked October 31, 2026
Compliance
- HIPAA: Microsoft Copilot and Microsoft Copilot Chat are in-scope services for the Microsoft HIPAA Business Associate Agreement in the Office 365 Commercial and GCC environments; the BAA is available through the Microsoft Online Services Data Protection Addendum by default to covered entities and business associates. source, source 2, source 3 · checked October 31, 2026
- FedRAMP: Microsoft Copilot is an in-scope service of Microsoft's FedRAMP offering for Office 365 GCC High, as it is for GCC and DoD; Microsoft states Office 365 GCC and GCC High have ATOs from US agencies and Office 365 DoD has a DISA P-ATO. source, source 2, source 3 · checked October 31, 2026
EU AI Act
Microsoft states it is committed to products that comply with the EU AI Act. source · checked October 31, 2026
Not published by Microsoft 365 as of October 31, 2026
- Fixed retention period for Microsoft Copilot and Copilot Chat prompts and responses (set by each customer's Purview policies)
- Copilot Studio statement on whether agent prompts and responses train foundation models
- FedRAMP Certified status or FedRAMP class (A to D) for Microsoft Copilot; Microsoft's FedRAMP page uses ATO and P-ATO terms
Changes
No changes recorded since the first check on October 31, 2026.
How this page is made, and how to send a correction: method.