Anthropic Models for Copilot in Word, Excel, and PowerPoint on by Default [MC1269241]

Message ID: MC1269241

[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.

[How this affects your organization:]

• Who is affected:
  • Tenants using Microsoft 365 Copilot and Copilot Chat in Excel and PowerPoint.
  • Word support for Anthropic models will be added in summer 2026.
  • Tenants in the European Union (EU), European Free Trade Association (EFTA), and United Kingdom (UK)
• What will happen:
  • The “Copilot in M365 apps with Anthropic models” setting is now available in the Microsoft 365 Admin Center.
  • If your global Anthropic subprocessor toggle is enabled, this update does not introduce any additional change.
  • Otherwise, this setting is enabled by default for your tenant (based on available capacity from Anthropic) and you can change it at any time.
  • If you keep the default setting, Anthropic model processing for Copilot in Excel and PowerPoint will occur outside the EUDB beginning May 4, 2026. Word support for Anthropic models will be added in summer 2026.

[What you can do to prepare:]

• Review your tenant’s “Copilot in M365 apps with Anthropic models” setting and update if needed:
  • Sign into the Microsoft 365 admin center
  • Go to Copilot > Settings > View All > AI providers operating as Microsoft Subprocessor
  • Confirm that your current setting aligns with your organization’s needs
• You can learn more about this setting here.

[Compliance considerations:]

Area impacted	Explanation
Does the change alter how existing customer data is processed, stored, or accessed?	Yes, if enabled. Data processing for Anthropic models in Copilot in Excel, and PowerPoint will occur outside of the EUDB. Word support for Anthropic models will be added in summer 2026. No customer data is stored outside the EUDB, and all data remains encrypted in transit.
Does the change include an admin control?	Yes. Admins can review or change the “Copilot in M365 apps with Anthropic models” setting in the Microsoft 365 Admin Center.

Source: Microsoft

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