Microsoft recently made its stance unequivocally clear: its Copilot AI will not venture into the realm of erotic or pornographic content. This announcement came shortly after the tech giant unveiled a dozen new artificial intelligence features as part of its anticipated fall release on October 23. These updates enhance Copilot with exciting additions like an interactive avatar, advanced agentic capabilities for the Edge browser, a collaborative work mode, and refined responses for health-related inquiries. However, a key distinction from rivals like OpenAI and xAI is Microsoft’s firm refusal to develop capabilities for ‘simulated erotica,’ a decision made amidst a rapidly expanding global AI sextech market.
Microsoft AI CEO Mustafa Suleyman emphasized this policy in a recent report, unequivocally confirming that the company’s AI services would steer clear of any sexual or pornographic material. Referring to such content as ‘simulated erotica,’ Suleyman stated, “That’s just not a service we’re going to provide. Other companies will build that.” This firm declaration positions Microsoft’s AI strategy clearly.
Suleyman’s remarks are particularly noteworthy given that they follow OpenAI CEO Sam Altman’s recent affirmation of his company’s “Treat adult users as adults” stance, indicating that ChatGPT would soon enable verified adults to generate erotic content. Microsoft’s divergence from OpenAI’s trajectory is intriguing, especially since Copilot itself leverages some of the same foundational AI models. It’s worth noting, however, that Copilot has also begun integrating Anthropic models into its framework, diversifying its AI backbone.
Microsoft isn’t the only company navigating the ethical complexities of AI content. While Microsoft focuses on its newly introduced Copilot features like avatars, collaboration tools, and health query improvements, other major players are exploring different paths. OpenAI, as mentioned, is moving towards adult-oriented content for verified users. Similarly, Elon Musk’s xAI has incorporated a ‘not safe for work’ (NSFW) mode for its Grok Imagine and Ani AI avatar features, although it currently prohibits generating explicit nudity.
The appetite for AI-generated intimate content predates these recent developments. Platforms like Replika and Character.AI have long provided users with roleplay-based erotic conversations. Replika, for instance, which markets itself as an AI companion, boasts over 10 million downloads on Google Play, underscoring the significant demand and popularity of such AI offerings.
Indeed, market analysis from firms like Market Growth Reports highlights the substantial and growing financial landscape of AI sextech. Valued at an estimated $2.33 billion (approximately Rs. 20,500 crore) in 2024, the global AI sextech market is projected to surge to $5.43 billion (roughly Rs. 47,000 crore) by 2033, demonstrating a robust compound annual growth rate (CAGR) of 11.15 percent. This considerable market size underscores the economic implications of AI content policies across the industry.