Microsoft's Copilot Claims Under Scrutiny by National Advertising Division

New York, NY — On June 9, 2025, the National Advertising Division (NAD) of BBB National Programs issued a report concerning Microsoft Corporation's claims regarding its Microsoft 365 Copilot, an AI-driven digital assistant launched to enhance productivity for enterprise customers in November 2023. The report concluded that while Microsoft substantiated certain express functionality claims, it also recommended the modification or discontinuation of several productivity-related assertions.

The NAD, which regularly monitors advertising practices to ensure compliance with truth-in-advertising standards, examined various claims made by Microsoft about the capabilities of its Copilot service across applications such as Word, Excel, PowerPoint, and Outlook. Specifically, the NAD scrutinized claims that Copilot could generate, summarize, and rewrite documents from user files, suggesting that it operates without significant limitations regarding file types, sizes, or quantities.

According to the NAD's findings, Microsoft adequately supported claims that the Copilot can synthesize and summarize substantial amounts of data, producing content drafts and outlines seamlessly. However, the NAD highlighted that the lack of explicit disclosures about the limitations of Copilot's functionality could mislead consumers about its capabilities.

NAD Chair, Dr. Jennifer Stevens, a marketing expert and professor at the University of Chicago, stated, "Consumers should be fully informed about the functionalities and limitations of technologies they utilize in their daily work. Misleading representations can undermine consumer trust in the brand and the technology itself."

In its review, the NAD also assessed Microsoft's assertions that Copilot enhances productivity and returns on investment (ROI). Microsoft claimed that significant percentages of users reported increased productivity after using Copilot for extended periods, citing results from its internal Copilot Usage in the Workplace Study. However, the NAD found that while the study demonstrated perceived productivity increases, it lacked sufficient empirical rigor to substantiate objective claims of enhanced productivity.

As a result, the NAD recommended that Microsoft modify or discontinue these productivity claims unless supported by robust and transparent evidence. In response, Microsoft acknowledged the NAD's recommendations, stating, "Although we disagree with some of NAD’s conclusions, we appreciate the opportunity to participate in this process and will follow NAD's recommendations for clarifying our claims."

The implications of this review extend beyond Microsoft, raising critical questions about the broader advertising practices within the technology sector. Dr. Emily Chen, a noted expert in digital marketing at Stanford University, commented, "This case underscores the importance of transparency and accuracy in tech advertising. As AI technologies continue to evolve, ensuring that consumers understand what these tools can genuinely deliver is paramount."

The National Advertising Division's decisions set a precedent that could influence how companies market AI-driven products, particularly in an environment increasingly wary of exaggerated advertising claims.

Looking ahead, the NAD's findings may lead to heightened scrutiny of other technology firms that utilize AI in their products. As consumer technology becomes more complex, the need for clear, truthful advertising becomes increasingly critical. The ongoing evolution of self-regulation in advertising, particularly in the digital sphere, will likely remain a focal point for industry stakeholders and regulators alike.

For more details on the NAD's findings and other advertising standards, visit the BBB National Programs website.