Microsoft’s Copilot Advertising Under Scrutiny by Industry Watchdog

Microsoft’s Copilot advertising has come under scrutiny from an industry watchdog for its claims regarding productivity and the confusing use of the Copilot branding. The BBB National Programs’ National Advertising Division (NAD) has reviewed Microsoft’s Copilot advertising has recommended that the software giant either discontinue or modify its productivity claims about Microsoft 365 Copilot and provide clearer disclosures regarding the limitations of its Business Chat feature.

Microsoft has asserted that Copilot offers productivity and return on investment (ROI) benefits for businesses that implement the AI assistant. The company claims that “67%, 70%, and 75% of users say they are more productive” after a specified amount of Copilot usage. However, the NAD found that while the study indicates a perception of productivity, it does not adequately support the objective claims made. The watchdog stated, “As a result, NAD recommended the claim be discontinued or modified to disclose the basis for the claim.”

In addition to the recommended changes to productivity advertising, NAD expressed concerns that users of Copilot might be confused by Microsoft’s extensive use of the Copilot branding across various products, including Business Chat. The NAD concluded that, given the context of the claims and the universal application of the product description as ‘Copilot,’ consumers may not fully understand the distinctions between the different offerings. Consequently, NAD has advised Microsoft to “modify its advertising to clearly and conspicuously disclose any material limitations related to how Business Chat assists users.”

Microsoft has faced challenges with its Copilot branding for several years. Earlier this year, the company attempted to simplify its branding issues by introducing free AI chat and pay-as-you-go agents relaunched its Copilot for business. Microsoft 365 Copilot Chat, as it is currently known, originally started as Bing Chat Enterprise before Microsoft then rebranded it transitioning to simply Copilot. Amidst this rebranding effort, Business Chat, which was initially a chatbot within Teams, has evolved into Business Chat for Microsoft 365 Copilot.

As noted previously wrote in Notepad almost a year ago, Microsoft has been rebranding Copilot in a manner that reflects its typical approach. This strategy is part of the company’s broader effort to attract businesses use Copilot more and encourage them to invest in the Microsoft 365 Copilot subscription.

Microsoft has publicly stated that it disagrees with NAD’s conclusions but has indicated that it “will follow NAD’s recommendations for clarifying its claims.” This commitment raises hopes that the Copilot branding will become clearer in the future.

Update, June 17th: Article updated to clarify NAD’s affiliation.