check before: 2026-05-04
Product:
Copilot, Copilot Chat, Microsoft 365 admin center, Microsoft 365 Apps, Microsoft 365 Copilot, Microsoft 365 suite
Platform:
Online, World tenant
Status:
Change type:
Feature update, User impact, Admin impact
Links:
Details:
Summary:
Starting May 4, 2026, Anthropic models will be enabled by default for Copilot in Word, Excel, and PowerPoint, with data processing outside the EU Data Boundary. Admins can review or change this setting anytime in the Microsoft 365 Admin Center. Word support begins summer 2026.
Details:
[Introduction:]
To provide more flexibility on model choice, Microsoft is introducing a new "Copilot in M365 apps with Anthropic models" setting in the Microsoft 365 Admin Center. When this setting is enabled, Anthropic models will be available by default for Copilot in Word, Excel, and PowerPoint.
When Anthropic models are used, data processing for these models will occur outside of the European Union Data Boundary (EUDB). Anthropic operates as a Microsoft subprocessor and is subject to Microsoft's Product Terms, Data Protection Addendum (DPA). No customer data or state is stored outside the EUDB, and all data is encrypted in transit.
This setting applies only to Anthropic model usage for Copilot in Word, Excel, and PowerPoint and is separate from the global Anthropic subprocessor setting previously announced here. If your global Anthropic subprocessor setting is already enabled, this update does not introduce any additional change.
Otherwise, this setting is enabled by default for your tenant and you can review or change this setting at any time in the Microsoft 365 Admin Center. If no change is made, Anthropic models will be available for Copilot in Word, Excel, and PowerPoint starting May 4, 2026.
[When this will happen:]
This change will take effect May 4, 2026.
Change Category:
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Scope:
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Release Phase:
Created:
2026-04-03
updated:
2026-04-03
Task Type
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Docu to Check
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MS How does it affect me
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MS Preperations
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MS Urgency
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MS workload name
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summary for non-techies**
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Direct effects for Operations**
Data Processing Location Change
Data processing for Anthropic models in Copilot will occur outside the EU Data Boundary, potentially violating data protection regulations.
- roles: IT Admin, Compliance Officer
- references: https://learn.microsoft.com/en-us/copilot/microsoft-365/connect-to-ai-subprocessor
User Experience Disruption
Users may experience changes in functionality or performance in Word, Excel, and PowerPoint due to the new models being enabled by default.
- roles: End User, Product Manager
- references: https://go.microsoft.com/fwlink/?linkid=2358122
Compliance Risks
Enabling the default setting without review may lead to non-compliance with GDPR and other data protection laws.
- roles: Compliance Officer, Legal Advisor
- references: https://learn.microsoft.com/en-us/copilot/microsoft-365/connect-to-ai-subprocessor
Increased Admin Workload
Admins will need to review and potentially change the new settings, increasing their workload and requiring additional training.
- roles: IT Admin, System Administrator
- references: https://go.microsoft.com/fwlink/?linkid=2358122
Potential Data Security Concerns
There may be concerns regarding data security and privacy due to processing outside the EUDB, affecting user trust.
- roles: End User, Data Protection Officer
- references: https://learn.microsoft.com/en-us/copilot/microsoft-365/connect-to-ai-subprocessor
Configutation Options**
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Opportunities**
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Potentional Risks**
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Data Protection**
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IT Security**
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Hypothetical Work Council Statement**
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DPIA Draft**
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explanation for non-techies**
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** AI generated content. This information must be reviewed before use.
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Last updated 1 week ago ago
