Microsoft’s advertising for its Copilot software has faced scrutiny from the BBB National Programs’ National Advertising Division (NAD), which has raised concerns about the productivity claims made by the tech giant. The NAD has reviewed Microsoft’s promotional material for Copilot and has recommended that the company either modify or discontinue its assertions regarding the productivity enhancements of Microsoft 365 Copilot. Furthermore, the watchdog emphasized the need for clearer disclosures regarding the limitations of the Business Chat feature.
Microsoft has been promoting Copilot as a tool that improves productivity and return on investment (ROI) for businesses. Claims have included that “67%, 70%, and 75% of users say they are more productive” following various levels of Copilot usage. The NAD indicated in its review that while there is evidence of perceived productivity enhancements, the supporting study does not adequately substantiate the claim made. Consequently, the NAD has called for these claims to be revised to clarify their basis.
In addition to the recommended changes regarding productivity claims, the NAD expressed concern that Microsoft’s extensive use of the Copilot branding across various products, including Business Chat, may be confusing for consumers. The division pointed out that the consistent use of the term “Copilot” does not clearly differentiate the functionalities of each product. As a result, the NAD has urged Microsoft to adjust its advertising to prominently disclose any significant limitations concerning how Business Chat assists users.
Microsoft has encountered ongoing challenges with its Copilot branding over the years. The company recently attempted to address these issues by relaunching Copilot for business, introducing free AI chat and pay-as-you-go services. Initially known as Bing Chat Enterprise, Microsoft 365 Copilot Chat was later rebranded simply as Copilot, leading to further confusion as its chatbot feature in Teams evolved into Business Chat for Microsoft 365 Copilot.
As previously noted in a column last year, Microsoft’s approach to rebranding Copilot reflects a common trend within the company’s strategies to increase its usage among businesses, resulting in additional costs for the Microsoft 365 Copilot subscription.
Despite expressing disagreement with the NAD’s findings, Microsoft has committed to adhering to the division’s recommendations on clarifying its advertising claims. This indicates a potential shift towards more transparent Copilot branding in the future.
Update, June 17th: Article updated to clarify NAD’s affiliation.
