The Better Business Bureau’s National Advertising Division (NAD) has reviewed Microsoft’s advertising for its AI assistant, Copilot, and recommended changes to its productivity claims and product branding disclosures.
Microsoft has promoted Copilot as boosting productivity, citing figures that “67%, 70%, and 75% of users say they are more productive” after using the tool. However, NAD found that these user perceptions do not adequately support the objective productivity claims made in the ads. It has advised Microsoft to either discontinue these claims or modify them to clearly state their basis.
Additionally, NAD highlighted potential consumer confusion due to Microsoft’s broad use of the Copilot name across various products, including Business Chat. The watchdog recommends Microsoft clearly disclose any important limitations of the Business Chat feature to avoid misleading users.
Microsoft’s Copilot branding has seen multiple changes, with Business Chat originally launched as a Teams chatbot now rebranded as Business Chat for Microsoft 365 Copilot. Efforts earlier this year to simplify branding included launching free AI chat and pay-as-you-go options under the Copilot umbrella.
In response to the NAD review, Microsoft disagrees with some conclusions but confirmed it will implement the watchdog’s recommendations to clarify its advertising claims, aiming for greater transparency in future communications.