MC1422074 High
(Updated) OpenAI models will soon be available as a subprocessor in Microsoft 365 Copilot
Summary AI-generated
Microsoft 365 is adding an admin control to enable OpenAI-operated models (starting with GPT-5.6) in Copilot; this is off by default July 9, 2026, and will auto-enable July 24, 2026 if no action taken.
Suggested actions AI-generated
- Review new admin setting for OpenAI models
- Configure 'No users' if you do not want OpenAI-operated models enabled
- Follow guidance to enable or disable the setting as desired before default enablement
Written by Azure OpenAI (gpt-4.1) from the text of the post below. It can be incomplete or wrong; the original post is authoritative.
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Original post from Microsoft
Updated July 14, 2026: We have updated the content. Thank you for your patience.
[What and why:]
To enable OpenAI-operated models in Microsoft 365 Copilot, Microsoft has onboarded OpenAI as a subprocessor, creating the foundation for more model flexibility and quicker access to new AI model innovations. This includes OpenAI's new family of models, beginning with GPT-5.6, which is now available in Microsoft 365 Copilot. These models are governed by the Microsoft Product Terms and the Data Protection Addendum (DPA), with the same enterprise-grade security, compliance, and data protection commitments you already rely on, except as otherwise disclosed in Microsoft Learn documentation. This setting does not apply to OpenAI models operated by Microsoft Azure OpenAI.
The setting will initially be disabled by default on July 9, 2026. Admins can review and configure the setting at any time in the Microsoft 365 admin center. For eligible customers, if no action is taken prior to July 24, 2026, the setting will be automatically enabled. Admins who do not wish to enable access to OpenAI-operated models should select “No users” before the setting is enabled.
OpenAI-operated models in the Microsoft 365 admin center are designed to provide administrators with the option to access new AI model capabilities quickly as they become available. GPT-5.6 will also be available through Microsoft Azure OpenAI. GPT-5.6 availability operated by Microsoft Azure OpenAI- may differ by Copilot experience.
[Rollout schedule:]
- Worldwide (General Availability): The OpenAI subprocessor setting will begin rolling out in the admin center on July 9, 2026, and become enabled by default for your tenant on July 24, 2026.
[Impact on your organization:]
Who is affected
- Admins managing Microsoft 365 Copilot and Microsoft Copilot Studio
- Microsoft 365 Copilot and Microsoft Copilot Studio users
Platforms / services
- Microsoft 365 Copilot
- Copilot in Microsoft 365 apps
- Microsoft Copilot Studio
What will happen
- A new admin setting in the Microsoft 365 admin center lets eligible customers enable or disable OpenAI-operated models.
- This setting will be initially Disabled by default, for your tenant, admins can choose to enable to use OpenAI-operated model for quicker access to the latest AI model innovation.
- Selecting "No users" prevents use of OpenAI models running on OpenAI infrastructure—some Microsoft 365 Copilot features may be unavailable as a result.
- Prompts and responses continue to receive enterprise data protection aligned with Microsoft 365 commitments
- OpenAI models operated by Microsoft through Azure OpenAI are not affected by the OpenAI subprocessor setting and will continue to appear in Copilot experiences.
[Action required / recommendations:]
Admin action required. If no action is taken prior to July 24, 2026, the setting will be automatically enabled.
If you prefer to enable OpenAI as a subprocessor, follow the steps in OpenAI as a subprocessor in Microsoft Online Services to enable the setting.
Learn more
Additional details from Microsoft
- Summary
- OpenAI models, including GPT-5.6, will be available as a subprocessor in Microsoft 365 Copilot starting July 9, 2026, initially disabled by default and auto-enabled on July 24, 2026, unless admins opt out. This allows faster AI updates with enterprise-grade security and compliance.