Microsoft 360 has over 300 million corporate users - trusting it with email, document management, and collaboration etc. It’s the defacto standard in larger companies especially in banking, medicine and finance that have more rigorous compliance regulations.
The administrative segments that decide to sell their firstborn to Microsoft all have their heads in the clouds. They'll pay Microsoft to steal their data and resell it and they'll defend their decisions making beyond their own demise.
As such Microsoft is doing the right choice in outright stealing data for whatever purpose. It will have no real consequences.
IT policy flick of the switch disables that, such as at my organization. That was instead intended to snag single, non-corporate, user accounts (still horrible, but I mean to convey that MS at no point in all that expected a company's IT department to actually leave that training feature enabled in policy).
It doesn't need to / it already is – most enterprises are already Microsoft/Azure shops. Already approved, already there. What is close to impossible is to use anything non Microsoft - with one exception – open source.
They betrayed their customers in the Storm-0558 attack.
They didn't disclose the full scale and charged the customers for the advanced logging needed for detections.
Not to mention that they abolished QA and outsourced it to the customer.
Maybe they aren't, but when you already have all your documents in sharepoint, all your emails in outlook and all your databases VMs in Azure, then Azure OpenAI is trusted in the organization.
For some reason (mainly because Microsoft has orders of magnitude more sells reps than anything else) companies have been trusting Microsoft for their most critical data for a long time.
For example when they backed the CEOs coup against the board.
With AI-CEOs - https://ai-ceo.org - This would never have happened because their CEOs have a kill switch and mobile app for the board for full observability