Microsoft dismisses claims it’s using Word and Excel data to train AI
Reports circulated from users that the firm had quietly introduced an opt-out feature on its training policy
Microsoft has dismissed claims circulating online that it uses customer data to train its AI models, making it the latest firm forced to publicly clarify its AI policy.
A blog post written by author Casey Lawrence initially voiced concerns, suggesting that Microsoft had implemented an ‘opt-out’ feature that, left unchecked, would allow the firm to use customer data in AI training.
“Microsoft Office, like many companies in recent months, has slyly turned on an ‘opt-out’ feature that scrapes your Word and Excel documents to train its internal AI systems,” Lawrence said.
Lawrence warned against anyone using Word documents to write proprietary content, saying that they should ensure the ‘opt-out’ feature is selected. The blog includes instructions on how to opt out of the AI training policy.
Users on social media voiced similar concerns, with one popular tech account, nixCraft, posting a screenshot of Lawrence’s blog to X with a quoted portion of the blog’s text.
Microsoft has since denied these circulating claims, responding on social media by posting a rebuttal of the AI training accusations to its Microsoft 365 X account.
“In the M365 apps, we do not use customer data to train LLMs. This setting only enables features requiring internet access like co-authoring a document,” Microsoft said.
Sign up today and you will receive a free copy of our Future Focus 2026 report - the leading resource for IT decision-maker insight on priorities and investment areas in AI, security and more.
Wary customers
This marks the latest in a series of spats between big tech firms and customers over alleged AI training policies, with both Slack and Adobe recently caught in the crosshairs over similar features.
In May, Slack was forced to update the language of its training policy to allay confusion among users, confirming that it uses some customer data to develop “non-generative AI/ML models.”
Slack said users could opt out if they didn’t want their data used in these models, though many rallied against the firm and the automatic opt-in nature of the policy.
The firm learned its lesson from the training fiasco, though. One company exec told ITPro it had been busy engaging with customers to clarify its AI training policies.
RELATED WEBINAR
Adobe had a similar issue in June when users complained the firm was training its AI model Firefly on customer content. Like Slack, Adobe updated its policy and sought to assure customers that it would never assume ownership of an individual’s work.
The firm even faced backlash from its own staff, with screenshots from an internal comms channel showing employees complaining about the firm’s poor communication and badly handled response.

George Fitzmaurice is a former Staff Writer at ITPro and ChannelPro, with a particular interest in AI regulation, data legislation, and market development. After graduating from the University of Oxford with a degree in English Language and Literature, he undertook an internship at the New Statesman before starting at ITPro. Outside of the office, George is both an aspiring musician and an avid reader.
-
How Welsh councils are improving services with Microsoft CopilotCase study AI use has reduced staff toil, improved customer service, and increased team collaboration at three Welsh councils
-
‘LLMs are unreliable delegates’: Microsoft researchers say you probably shouldn’t trust AI with work documentsNews A research paper from Microsoft shows AI degrades documents over longer workflows
-
Microsoft joins competitors in handing over AI models for advanced testingNews US and UK government agencies will evaluate the firm's frontier models, along with those from Google and xAI
-
The AI operations gap is reshaping the Microsoft channelHow are AI advancements shaping the moves channel partners are making and need to make going forward?
-
Accenture has been trialling Microsoft Copilot since 2023 – now it’s rolling out the AI tool to all 743,000 staffNews Accenture will roll out Microsoft Copilot to nearly three quarters of a million employees after years of testing
-
'That language is no longer reflective of how Copilot is used today': Microsoft says Copilot isn't just for 'entertainment purposes only'News Sharp-eyed users spotted Microsoft describing its Copilot AI as "for entertainment purposes only"
-
‘Fragmentation is poison’: How Microsoft is targeting disparate data to boost AI adoptionNews Amir Netz, the co-creator of Microsoft's Power BI service, tells ITPro that business context is key to effective AI deployment.
-
Microsoft is rolling out Copilot Cowork to more customersNews Use of Copilot Cowork has been limited to select customers so far

