Microsoft Enterprise AI Services Code of Conduct

Microsoft released a new page on their Learn platform about the Enterprise AI Code of Conduct. This page defines the requirements that all Microsoft AI Services customers must adhere to in good faith.

The Microsoft AI Code of Conduct emphasizes the following key points:

• Responsible AI Requirements: Applications built with Microsoft AI Services must implement measures to detect fraudulent behavior, limit misuse, disclose AI-generated content, ensure human oversight, and establish feedback channels.
• Usage Restrictions: Customers and users must not use Microsoft AI Services for harmful, illegal, or unethical purposes.
• Content Requirements: Generated content must comply with applicable laws and ethical standards, avoiding deception or harm.
• Security Measures: Robust security and access controls must be implemented to protect AI resources and user data.

For more details, you can explore the full document here. It states that this document replaces the previous codes for Microsoft Generative AI Services, Azure AI Vision Face API and Azure AI Speech text to speech.

However, for anything other than the Code of Conduct you should still review the respective pages of the Product Terms, like the Universal Licensing Terms for Online Services or the Privacy and Security terms.

Pricing update for CSP

As mentioned in previous updates, starting today, April 1st, license prices for monthly-billed annual (or triennial) subscriptions will increase by 5%. Please be aware that this adjustment will apply to your upcoming renewal. If you wish to avoid this price increase, consider switching to annual payments for your 1-year or 3-year subscriptions.

Starting today on April 1st, 2025, Microsoft is also updating the pricing for Microsoft Teams Phone Standard, Power BI Pro, and Power BI Premium Per User. See our Microsoft Licensing Update February 2025 for the price list.

Update! New CSP Pricing Update: Microsoft 365 Copilot Promo Extended

Microsoft has announced an important update for Cloud Solution Provider (CSP) partners. Initially set to end on March 31, 2025, the 15% promotional discount on Microsoft 365 Copilot CSP has now been extended through June 30, 2025.

What does this mean for CSP partners?

• The extension provides CSP direct-bill partners and indirect providers in all markets and regions with more time to take advantage of the discount.

• 15% off net partner price applies to the first 300 new Copilot subscriptions for 12 months (with a minimum purchase of 10).

• This extension runs until the end of Microsoft’s Q4 (June 30, 2025), offering more opportunities to drive adoption and value for customers.

This is a great opportunity for CSPs to continue promoting Microsoft 365 Copilot and maximize customer adoption before the promo ends.

EA to CSP Transition Made Easier: Teams Now Available in CSP

Starting April 1st, 2025, Microsoft is introducing a new guided user interface in Partner Center to streamline the renewal process for customers transitioning from the Enterprise Agreement sales motion to the MCA through a CSP partner. The new user interface is designed with customers in mind with expired or expiring EA subscriptions of End of Sale (EOS) SKUs (Microsoft 365 E3 and E5 with Teams and Office 365 E1, E3, and E5 with Teams) to move to CSP while keeping their Teams entitlements.

This will benefit organizations looking to move to the Microsoft Customer Agreement (MCA) while retaining their existing Teams entitlements. One of the biggest challenges for customers moving from Enterprise Agreement (EA) to Cloud Solution Provider (CSP) was the absence of Teams in CSP licensing. That has now changed removing a major barrier to EA-to-CSP migrations.

Key Updates for CSP Partners:

• Teams availability in CSP: Customers can now retain Microsoft 365 and Office 365 Enterprise suites with Teams when renewing through CSP.

• Guided EA-to-CSP renewal process: The new Partner Center interface will help CSP partners manage renewals, ensuring customers maintain their existing services without disruptions.

• Supports expiring and expired EA subscriptions: Customers within a 90-day EA grace period will still be eligible to transition their licenses into CSP.

• Easier subscription alignment: The new process aligns CSP subscriptions with EA end dates, preventing overlapping billing or service gaps.

With these changes, Microsoft is removing a major disadvantage of CSP and making it easier than ever for EA customers to transition seamlessly.

Product Terms updates

Universal Licensing Terms for Online Services

• Eligibility to Assign Frontline Worker Licenses clause moved from the M365 page to the ULT for OLS. The Clause itself has not changed.
• Responsible Use of Microsoft AI Services moved from the Gen AI subsection to it’s own section. Meaning this is bigger than Gen AI only.
• The Bing clause has been reworded, most likely for better understandability and readability.
• Government Customers clause was updated to also include free trials and previews.

Privacy & Security terms

• Dynamics 365 Contact Center adeed to the list of Core Online Services (March 5th update).
• Microsoft 365 Copilot for Sales was added to the list of Core Online Services. This is now also SSAE 18 SOC 1 Type II & SSAE 18 SOC 2 Type II compliant. For Data at Rest, this product stores Customer Data within the specified Geo or tenant location, based on provisioning and service type, following guidelines from Dynamics 365 and Office 365. It is also part of the EU Data Boundary guidelines and a larger clause describing this has been added to the page.

Windows Desktop Operating System

• Defender for Endpoint Plan 1 and Plan 2 removed from this page (moved to Other Online Services page).
• Added the Windows 10 ESU Cloud Managed (Per Device) line item and added the license eligibility:
  • Windows 10/11 Enterprise/Education
  • Intune
  • Microsoft Entra ID P1/P2
  • Microsoft 365 F3/E3/G3/E5/G5/A3/A5/Business Premium/Student Use Benefit

Microsoft 365

• Permissions Management, Viva Topics and Secure Access Essentials removed from availability and prerequisites tables.
• Microsoft added a list of all Frontline Workers licenses that are now available. Worth checking out if you’re unsure what products have a Frontline Workers option, they’re always cheaper!
• Updated Data Handling terms (March 12th update): Customer Data may be shared between Microsoft products as per product documentation and governed by respective Product Terms. Query Data sent from Entra ID-authenticated Microsoft 365 Copilot usage to Bing is protected, not used for advertising or AI model training, and remains confidential under strict security measures.
• Microsoft Business Premium 365 added as a prerequisite to Microsoft 365 E5 Security (March 5th update)
• Defender for Business & Defender Vulnerability Management update: Customer may not use a Microsoft Defender for Business User SL with server OSEs. While already clear, this was previously omitted from the PT and probably as such has now been added.

Microsoft Azure

• References for Azure AI Services updated to include the new Code of Conduct page.
• Frontline Workers Licenses included in Product conditions.

Dynamics 365

• Dynamics 365 Fraud Protection and Fraud Protection Additional Capacity excluded from Availability tables and Usage Restrictions.

Audio Services

• Updated link to Learn document for messaging policy.

Windows 365

• Windows 365 Disaster Recovery Plus Add-on added to Availability Table.
• Clarification added stating Windows 365 Frontline Worker licenses are not subject to the clause in the Universal Licensing Terms for Online Services. Meaning that the Windows 365 licenses are covered by what is included on this respective page.
• Windows 365 Frontline License Assignment Eligibility clause was removed. It changed into a new clause called Windows 365 Frontline, stating the license requirements (Windows 10/11 Enterprise/Education, Intune, and Microsoft Entra ID P1/P2, Microsoft 365 F3/E3/G3/E5/G5/A3/A5/Business Premium/Student Use Benefit). Below, I also share the update for Enterprise licenses and the two available modes
  • Shared – only 1 cloud PC may be provisioned per license and any number of users may access the cloud PC, but one at a time
  • Dedicated – Up to 3 cloud PCs may be provisioned per license, but only 1 cloud PC can be used per license)
• Contrary to the Windows Desktop OS requirements, licensed users with Windows CPC OS devices are eligible to access Windows 365 Enterprise.

Professional Services

• Microsoft Enhanced Services and Solutions for Premier and Unified Support & Microsoft Support Services Business Rules clauses removed.
• A clause has been added to the Availability section, stating that any additional Unified or Premier Support services not available through Microsoft Volume Licensing should be purchased directly from Microsoft. This new addition effectively replaces the removed clauses.

Glossary

• Frontline Workers definition added: “Frontline Worker License means a license for a Microsoft Product designated with an “F”, “FLW”, or “Frontline” as identified in the Product Conditions table of product specific terms, which are subject to the Eligibility to Assign Frontline Worker Licenses terms in the Universal License Terms for all Online Services.”
• Microsoft AI Service definition added: “Microsoft AI Service means an Online Service or feature thereof that uses artificial intelligence technologies, including any Microsoft Generative AI Service.”