Granular access control for third-party AI model providers in Microsoft 365 Copilot

Currently, third-party model access providers (such as Anthropic) in Microsoft 365 Copilot and Copilot Studio can be toggled on or off at the tenant level. This update adds a new control that lets admins assign access to specific users or Entra ID groups.

This update applies to organizations using third-party model providers (Anthropic or xAI) in Microsoft 365 Copilot or Copilot Studio. xAI is available only in the US.

Timeline

The rollout should be completed in April 2026. Government clouds are excluded from this rollout.

How does this affect your organization?

AI Administrators can now use the Microsoft 365 Admin Center to assign third-party model provider access to specific users or Entra ID groups. The assignment applies at the provider level, not the individual model level, and is enforced across Microsoft 365, Power Platform environments, and Copilot Studio.

Control the AI providers operating as ‎Microsoft‎ subprocessors
Control the AI providers operating as ‎Microsoft‎ subprocessors

Admins should verify their existing configuration:

  • If Anthropic was previously enabled, the setting has been updated so that “All users” can use it.
If it was enabled, the setting has been updated to "All users"
If it was enabled, the setting has been updated to “All users”
  • If Anthropic was previously disabled, the setting has been updated so that “No users” can use it.
If it was disabled, the setting has been updated to "No users"
If it was disabled, the setting has been updated to “No users”
  • Changes to these settings can take several hours to take effect. The 15-minute timeframe shown in the UI shouldn’t be taken as a reliable estimate.
Changes to these settings will take some hours
Changes to these settings will take some hours

Other tenant settings are not automatically migrated to user or group assignments. Admins who want to restrict access must configure assignments manually.

  • Access can be assigned to users or groups, granting or restricting access to a specific third-party model provider for selected users or Entra ID groups rather than the entire tenant.
  • Entra ID nested groups are supported; up to 999 users and groups in combination can be assigned per provider.
  • Assignments apply at the provider level; all models from a given provider are affected; per-model control is not available.
  • Anthropic models deployed in Microsoft offerings are still excluded from the EU Data Boundary and from in-country processing commitments.

AI Administrators should review their current Anthropic and xAI (if available) provider settings in the Microsoft 365 Admin Center and determine which users or groups should retain access. Any agents or Copilot Studio experiences that could be affected by scoping access to a security group should be updated accordingly.

If Anthropic has been disabled in the M365 Admin Center, the Power Platform Admin Center will display a notification, …

Anthropic as a model provider is unavailable in the Power Platform Admin Center
Anthropic as a model provider is unavailable in the Power Platform Admin Center

…including for any Copilot Studio agents configured to use Anthropic models. Anthropic models are no longer available.

Anthropic models are unavailable in Copilot Studio
Anthropic models are unavailable in Copilot Studio
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Tobias Asböck

Tobias is a Senior System Engineer with more than 10 years of professional experience with Microsoft 365 products such as SharePoint Online, SharePoint Premium, OneDrive for Business, Teams Collaboration, Entra ID, Information Protection, Universal Print, and Microsoft 365 Licensing. He also has 15+ years of experience planning, administering, and operating SharePoint Server environments. Tobias is a PowerShell Scripter with certifications for Microsoft 365 products. In his spare time, Tobias is busy with updates in the Microsoft 365 world or on the road with his road bike and other sports activities. If you have additional questions, please contact me via LinkedIn or [email protected].

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