Microsoft's Copilot terms label AI output 'for entertainment purposes only'

Microsoft's terms of service for Copilot explicitly warn users that the AI assistant's outputs are "for entertainment purposes only," adding the company to a growing list of tech firms legally distancing themselves from AI-generated content reliability. The disclosure, reported by TechCrunch, highlights the tension between aggressive AI marketing and legal caution as companies face mounting pressure over hallucinations, copyright violations and harmful outputs. The terms represent a significant hedge against liability at a time when Microsoft is embedding Copilot across its Office suite and Windows operating system. Legal experts say such disclaimers may limit consumer recourse but could face challenges in jurisdictions with stronger consumer protection laws. The revelation follows similar fine-print limitations from other AI providers and arrives as regulators in the European Union and United States draft rules governing AI accountability.