The Australian Competition and Consumer Commission (ACCC) has initiated legal action against Microsoft due to misleading representations made to around 2.7 million customers concerning the integration of Copilot AI into their Microsoft 365 personal and family subscriptions. Customers were reportedly presented with two options: accept a subscription fee increase of up to 45% or cancel their subscriptions, while being misled about the availability of a third option to maintain their existing plan without Copilot.
This case emphasizes the growing concern for transparency within the integration of AI products in software packages. Analysts suggest that Microsoft’s bundling strategy reflects a broader industry trend toward embedding AI as a core feature of productivity tools. While such integration might enhance user experiences, it raises significant transparency risks, leading to potential regulatory scrutiny over how tech companies communicate changes to their services. The ACCC’s legal action shines a light on obligations vendors have to adequately inform users, especially in a market where switching costs are high due to the essential nature of these tools.
👉 Pročitaj original: CIO Magazine
