Summary
Table of Contents
- Microsoft 365 Copilot will support OpenAI-operated models as a new subprocessor option, including GPT-5.6, giving tenants access to newer AI model capabilities.
- A new admin setting in the Microsoft 365 admin center lets eligible tenants enable or disable access to these OpenAI-operated models.
- The setting is initially disabled for tenants, but if admins take no action by the deadline, it will be automatically enabled for eligible customers.
- A tenant set to “No users” will block OpenAI-operated models, which may make some Microsoft 365 Copilot features unavailable.
- The change applies to admins and users of Microsoft 365 Copilot, Copilot in Microsoft 365 apps, and Microsoft Copilot Studio.
Primary Service: M365 Copilot
Admin Impact: High
User Impact: Medium
Release Start: 09 Jul 2026
Release End: 24 Jul 2026
Services: Admin, M365, M365 Copilot
Category: Plan for change
Tags: Admin Action, New Feature, User Adoption
History
7/9/2026 Item Added to Message Center
Microsoft Message
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 as they become available.
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
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
- OpenAI as a subprocessor in Microsoft Online Services
- Overview of AI Subprocessors
- Enterprise data protection in Microsoft 365 Copilot
- Microsoft Product Terms
- Data Protection Addendum
- Subprocessor data access