Microsoft is changing the default setting of Copilot in Teams meetings.
By default, Copilot will soon run without transcription in newly scheduled meetings where Copilot is allowed, and conversation history will persist during the meeting to support multitasking and continuity.
This change mainly affects users with a Microsoft 365 Copilot license.
Timeline
The rollout is expected to be completed by late September 2025.
How this affects your organization
Microsoft is changing the Copilot property in the global meeting policy from EnabledWithTranscript to Enabled. Custom policies remain unchanged.

Policy configuration in the Teams Admin Center.

This change affects new tenants and new users. The definition of “new users” is unclear for me, since they usually inherit the global meeting policy by default.
Microsoft notes:
Existing users without a set policy will inherit the host configuration and receive this new default.
What is the impact of the change?
The impact is noticeable and described here.
Microsoft explains the current default setting EnabledWithTranscript:
EnabledWithTranscript
This is the current default. When organizers with this policy create meetings, Copilot’s default value in meeting options is “During and after the meeting.” This setting is enforced and cannot be changed by the organizer.
Transcription is enabled by default if AllowTranscription is set to True in your meeting policy.
Organizers cannot change this meeting setting. Below is an example.

After the update, with the new default setting Enabled:
Enabled
When organizers create meetings, Copilot’s default value is “Only during the meeting.” Organizers can change this to “During and after the meeting” or turn it Off.
Screenshot from the updated meeting options. An organizer has the option to change the Copilot setting.

With “Only during the meeting“, transcription will not be enabled by default. It must be turned on manually in meeting options or during the meeting if post-meeting insights or Copilot history are required.
The update also improves conversation history. Users can switch between meeting features (chat, participant list, etc.) without losing Copilot insights, but only when Copilot is used without transcription.