National Advertising Division Finds Certain Microsoft Copilot Claims Supported; Recommends Others be Modified or Discontinued

Core Viewpoint - The National Advertising Division (NAD) has recommended that Microsoft modify or discontinue certain claims related to the productivity and functionality of its Microsoft 365 Copilot, following a review of the advertising claims made by the company [1][9]. Summary by Sections Product Claims - Microsoft 365 Copilot, launched in November 2023, is an AI-powered digital assistant integrated across Microsoft 365 applications, including Word, Excel, PowerPoint, Outlook, Teams, and Business Chat [2]. - NAD examined claims regarding Copilot's ability to generate, summarize, and rewrite content, concluding that the claims suggest Copilot can work seamlessly with all user files without limitations on file type, size, or number [3][4]. Functionality and Limitations - While NAD found that Microsoft provided reasonable support for claims about Copilot's summarization and drafting capabilities, it noted that limitations on functionality were not disclosed, although these limitations did not significantly impact user experience [5]. - The review highlighted that while Copilot can assist users in various applications, Business Chat requires manual steps to produce results similar to those achieved directly in Microsoft 365 apps [8]. Advertising Recommendations - NAD recommended that Microsoft modify its advertising to clearly disclose any material limitations regarding how Business Chat assists users [9]. - Regarding productivity claims, NAD reviewed a study indicating that 67%, 70%, and 75% of users reported increased productivity after 6, 10, and over 10 weeks of using Copilot, respectively [10]. - However, NAD concluded that the study did not adequately support the objective claims made, recommending that these claims be modified or discontinued [11]. Compliance and Response - Microsoft informed NAD that it had permanently discontinued certain productivity claims during the inquiry, which NAD will treat as compliance for review purposes [12]. - In response to NAD's conclusions, Microsoft expressed disagreement with certain elements but stated it would follow NAD's recommendations for clarifying its claims [13].