Watchdog Urges Microsoft to Clarify Copilot Productivity Claims and Branding

Microsoft has come under fire from an industry watchdog for its advertising practices regarding Copilot, an AI assistant integrated into its Microsoft 365 suite. The Better Business Bureau’s National Advertising Division (NAD) has reviewed Microsoft’s promotional materials and suggested several changes, particularly concerning productivity claims and the clarity of the Copilot brand. According to Tom Warren, a seasoned tech journalist with over 20 years of experience covering Microsoft and the broader tech landscape, Microsoft has been touting significant productivity gains and return on investment (ROI) for businesses using Copilot. The company has cited figures such as 67%, 70%, and 75% of users reporting increased productivity after using Copilot. However, NAD found these claims to be problematic. While the study indicates a positive perception of productivity, it falls short of supporting objective statements about actual productivity improvements. As a result, NAD has advised Microsoft to either discontinue these specific claims or modify them to clearly explain the basis for the reported benefits. Another major point of criticism is the extensive and sometimes bewildering use of the "Copilot" name across various products. This includes features like Business Chat, which can lead to consumer confusion about the different functions and limitations of each version of Copilot. For instance, Business Chat, originally a chatbot within Microsoft Teams, is now part of the broader Microsoft 365 Copilot suite. NAD recommends that Microsoft adjust its advertisements to clearly and prominently disclose any significant limitations or differences in functionality related to Business Chat. Microsoft’s history with the Copilot brand is marked by a series of rebrands that have added to the confusion. Earlier this year, the company reintroduced Copilot for business, offering both free AI chat and pay-as-you-go agents, in an effort to streamline its branding. Despite these attempts, the rebranding has been criticized for its lack of clarity. Microsoft 365 Copilot Chat, previously known as Bing Chat Enterprise, was rebranded simply as "Copilot," further complicating the landscape. Meanwhile, Business Chat, initially designed for Teams, now falls under the Microsoft 365 Copilot umbrella. In a piece from almost a year ago, Warren described Microsoft’s rebranding process as quintessentially Microsoft—complex and often unclear. The strategy seems aimed at encouraging businesses to use Copilot more frequently and then upgrade to the paid Microsoft 365 Copilot subscription. While Microsoft disputes NAD’s findings, the company has committed to following the watchdog’s recommendations to clarify its advertising claims. This move may lead to more transparent and understandable communication around the Copilot brand, addressing the current confusion and ensuring that potential users have a clearer understanding of what to expect from the AI assistant. The hope is that these changes will make Copilot branding more coherent and user-friendly, ultimately leading to better adoption and satisfaction among businesses. Clear communication is crucial in the tech industry, and Microsoft’s willingness to take steps toward this goal is a step in the right direction.