OpenAI’s ChatGPT has seen a decline in website visits for the third consecutive month, with users spending less time on the site. The drop in active users in June and July stabilized somewhat in August, with experts attributing the decline to students going on summer vacation. ChatGPT is primarily used by college-age individuals, with students seeking homework help being part of the story. While teachers have expressed concern that most of their students use ChatGPT in some capacity, the decline in accuracy of the tool and increasing competition in the chatbot space could also be contributing factors.
Microsoft has announced the Copilot Copyright Commitment, which provides legal protection for customers who are sued for copyright infringement over content generated by the company’s AI systems. The policy covers damages and legal fees, providing customers with an added layer of protection as generative AI sees rapid adoption across the tech industry. Microsoft will pay any legal damages for customers using Copilot, Bing Chat, and other AI services as long as they use built-in guardrails.
Why do we care?
I’m more interested in considering that there is more competition in the chatbot space. I’m not panicking the same way some of the analysis is over ChatGPT’s dips. We’ve recently covered how much these tools are being experimented with. Users are trying things, and that will mean some fluidity, too.
According to legal experts, Microsoft’s pledge to defend customers from copyright infringement lawsuits related to its Copilot AI tools is a smart move, as the risk of infringement is low. Generative AI platforms still face legal questions over the material used to train the models. Microsoft’s indemnification commitment aims to reassure potential customers. Still, limitations on coverage and the fact that Microsoft would likely already be a co-defendant in lawsuits would limit the number of applicable cases.
This is savvy positioning. Partners can leverage that too – with as much uncertainty as there is, this is notable.

