In mid-September 2025, Microsoft changed the default Teams Copilot meeting setting from "EnabledWithTranscript" to "Enabled," so transcription no longer starts automatically for newly scheduled meetings; it now requires manual activation. The change (Message Center MC1139493) applies to new tenants/users and existing users without a custom policy set, while tenants with custom Teams meeting policies are unaffected. For MSPs, it's a prompt to audit Teams policies across tenants and proactively communicate the change before it causes confusion.
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This covers the default Teams Copilot transcription setting change (EnabledWithTranscript → Enabled) rolling out from mid-September 2025. It doesn't cover Teams Premium or Copilot licensing requirements, doesn't cover transcription/recording compliance obligations in specific jurisdictions, and doesn't apply to tenants with existing custom Teams meeting policies, which are unaffected by the default change.
Starting mid-September 2025, Microsoft Teams Copilot will no longer default to transcription in newly scheduled meetings. This change - full details available here - shifts the default setting from 'EnabledWithTranscript' to 'Enabled', meaning transcription must now be manually activated by users during meetings.
For MSP, this is more than just a configuration tweak - it’s a moment to reassess customer needs, user expectations, and an opportunity to proactively manage policies to prevent unintended consequences.
Copilot will run without transcription by default for new tenants and users.
Existing users without a set policy will inherit the host’s configuration.
Custom Teams meeting policies remain unchanged, but default behaviour shifts.
Transcription must be manually enabled during meetings to retain post-meeting insights and access Copilot-generated content.
Full details available as part of Message Centre MC1139493.
User confusion & support load. Users accustomed to automatic transcription may be caught off guard. MSPs should expect a spike in support queries and proactively address the change through training and communication.
Proactive policy management opportunity. In addition, this is a prime moment to review and optimise Teams meeting policies across multiple M365 tenants. MSPs can help customers enforce transcription defaults where needed and align settings with business requirements and user expectations.
Audit Teams meeting policies for all managed tenants and identify where transcription should continue to be enabled by default.
Educate clients and users on how to manually enable transcription in Meeting Options or during live sessions.
Update onboarding and training materials to reflect the new default behaviour.
Monitor usage and feedback to identify gaps in understanding or compliance exposure.
This change may seem minor, but for MSPs, it’s a chance to demonstrate proactive governance, continuously improve perceptions as a trusted advisor, and reinforce the value of managed M365 environments.
The default meeting setting changed from "EnabledWithTranscript" to "Enabled," meaning transcription for Teams Copilot meetings no longer starts automatically. It now needs to be manually activated during the meeting.
The change rolled out from mid-September 2025, applying to newly scheduled meetings under the new default.
New tenants and users, along with existing users who don't already have a custom Teams meeting policy set, inherit the new default. Tenants with existing custom Teams meeting policies are unaffected.
Microsoft published this update under Message Center reference MC1139493.
Microsoft MSPs can use inforcer's 365 Manager to audit Teams meeting policies across managed tenants. This makes it easy to confirm which default customers are on, proactively communicate the change to affected clients, update training materials on manual transcription activation, and monitor for any compliance gaps this creates.