By now, if you haven't heard of AI, where have you been? OpenAI jumpstarted the generative AI revolution bringing us tools like ChatGPT and DALL-E. Last year, Microsoft jumped on the bandwagon, launching Copilot, a personal “everyday AI companion” that brings OpenAI’s technology right into your Microsoft Office experience. But what exactly is Microsoft Copilot, and how can you make the most of it while minimising risk?

What is Microsoft's Copilot?

Microsoft Copilot is a generative AI integrated across Microsoft’s ecosystem, appearing in Windows, Edge, Office apps, and Bing. This AI-powered assistant combines OpenAI, Bing, and Microsoft technologies, offering a conversational chat sidebar that can answer questions, generate text, and even create images from prompts. Copilot can simplify a memo, draft emails, write code, or generate visuals with a simple request. For example, ask it to "Summarise this memo," and it will produce a brief overview or create an image based on a description you provide. It’s powerful, versatile, and user-friendly, but it should be used with caution!

 

The Risks of Letting Copilot Run Free in Your Business

Like all powerful tools, Copilot has a few quirks you’ll want to keep in mind:

Sometimes, Copilot can hallucinate

While Microsoft Copilot can help streamline workflows, remember that it’s not perfect. Like other AI tools, Copilot can produce inaccuracies, often referred to as "hallucinations." This means that users should critically evaluate all outputs, particularly when accuracy matters. Think twice before hitting "send" on that AI-generated email or report, especially when sensitive or high-stakes topics are involved.

Protecting Sensitive Data

Microsoft ensures that anything inputted into Copilot remains private and isn’t shared with other customers or used for training purposes. However, since Copilot works across an entire workspace, it’s crucial to fully understand Microsoft’s terms of service and data privacy guidelines, and to adjust settings accordingly. You wouldn’t want Copilot accidentally pulling data from one client and applying it elsewhere!

Mind the IP

The risk of IP infringement exists with any AI tool, especially one that generates images or text that may inadvertently resemble another company’s branding or designs. Microsoft has expanded its intellectual property (IP) indemnity to cover Copilot, providing some reassurance against third-party IP risks. However, there are conditions; users must follow Copilot’s content safety systems to avoid potential pitfalls.

 

How to Minimise Legal Risk When Using Copilot

Limit Your Liability

To keep your business safe and sound, it’s crucial to specify that you’re not responsible for how customers or end users decide to use Copilot. Dive into those contracts and give them a thorough once-over to ensure you’re not inadvertently taking on the liability for Copilot’s antics. And don’t forget to check that you haven’t accidentally granted any warranties for those third-party services!

 

Incorporate Key Terms from Third Parties

To create a solid safety net, make sure your agreements explicitly reference and incorporate relevant third-party product terms and end-user license agreements. This establishes clear obligations and helps limit liability for both you, the supplier, and your customers, the end users. Think of it as your safety rope in the wild world of AI!

Clarify the “As Is” Reality of Services

Be upfront about the fact that Copilot comes with an “as is” tag, meaning your company isn’t responsible for the specific outcomes users may get. This little disclaimer helps set realistic expectations and keeps potential disputes at bay when things don’t go quite as expected.

Craft a Usage Policy for Copilot

If you’re rolling out Copilot in your workplace, a clear usage policy is a must-have. This should outline guidelines and limitations for its use, along with your rights to keep an eye on activities. You may want to also consider offering tech support or training. 


For Legal Documents, Precision is Key

When it comes to contracts and legal documents, there’s no room for error. Microsoft Copilot can help with initial drafts, but it’s not equipped to handle the level of precision and compliance legal agreements demand. For truly dependable, legally sound contracts, choose an AI solution purpose-built for law. With Cloud Contracts 365, you can create compliant, accurate documents tailored to the needs of modern tech businesses. Try our Contract Builder for free.