The behavior is by design and tied to two separate admin controls that both affect Anthropic usage:
- Anthropic as a Microsoft subprocessor (global toggle)
- Copilot in Microsoft 365 apps with Anthropic models (app‑specific toggle for Word/Excel/PowerPoint in EU/EFTA/UK)
Key points from the documented behavior:
- Anthropic models are disabled by default in EU/EFTA/UK and must be explicitly opted in as a subprocessor before they can be used anywhere in Microsoft 365 Copilot.
- The Copilot in Microsoft 365 apps with Anthropic models setting is separate from the global subprocessor toggle and only controls whether Anthropic is used by default in Copilot experiences in Word, Excel, and PowerPoint.
- Word, Excel, and PowerPoint Agents and Agent mode in Excel/PowerPoint require Anthropic models. If Anthropic is disabled as a subprocessor, those features will not function and the agents will not appear.
- If Anthropic is enabled as a subprocessor, admins can still disable Anthropic usage in Microsoft 365 apps by turning off the Copilot in Microsoft 365 apps with Anthropic models setting, but Anthropic remains available for other Copilot experiences that depend on it (for example, Word/Excel/PowerPoint Agents, Researcher, Copilot Studio, Power Platform) as long as the subprocessor toggle stays On.
To fully turn off Anthropic for Agent mode and agents (no Anthropic processing at all), the supported path is:
- In the Microsoft 365 admin center, as a Global administrator:
- Go to Copilot → Settings → View all → AI providers operating as Microsoft subprocessors.
- Under Available subprocessors for your organization, select Disable Anthropic as a Microsoft subprocessor and save.
- This blocks Anthropic models across Microsoft 365 Copilot and Copilot Studio experiences, including Agent mode in Excel/PowerPoint and Word/Excel/PowerPoint Agents.
- If Anthropic must remain enabled as a subprocessor for other workloads, but should not be used by default in Word/Excel/PowerPoint Copilot experiences:
- Sign in as an AI Administrator.
- Go to Copilot → Settings → View all → Copilot in M365 apps with Anthropic models (EU/EFTA/UK tenants only).
- Turn off Allow Anthropic models in Copilot experiences in Microsoft 365 apps and save.
- This prevents Anthropic from being used as the default model in Copilot within Word, Excel, and PowerPoint, but does not disable Anthropic globally.
The consent requirement seen when unchecking Allow Anthropic models in Copilot experiences in Microsoft 365 apps is tied to enabling Anthropic as a subprocessor under Microsoft’s Product Terms and DPA. If the goal is to avoid accepting Anthropic’s subprocessor terms entirely, the correct control is to disable Anthropic as a Microsoft subprocessor instead of relying solely on the app‑specific toggle.
If the Save button remains unavailable even when using the AI providers operating as Microsoft subprocessors page to disable Anthropic, or if the UI forces consent when attempting to opt out, that behavior is not documented and should be treated as a service issue. In that case, the next step is to open a support ticket with Microsoft, referencing the Anthropic subprocessor and Copilot in M365 apps with Anthropic models settings and the MC1269241 Message Center post.
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