Microsoft 365 Copilot This Content Cannot Be Used Error: Fix

You see the error “This content cannot be used” when you try to generate, summarize, or rewrite content with Copilot in Word, Excel, or PowerPoint. This error typically appears because Copilot cannot access the file or the data source it needs to complete your request. The root cause is often a file permission issue, a missing Microsoft Graph connection, or a policy that blocks Copilot from reading the content. This article explains why the error occurs and provides step-by-step fixes to restore full Copilot functionality.

Why Copilot Shows the “This Content Cannot Be Used” Error

The error occurs when Copilot attempts to read a file or data source and the underlying request to Microsoft Graph fails. Microsoft Graph is the API gateway that Copilot uses to access your files, emails, calendar events, and other Microsoft 365 data. If the Graph call returns a 403 Forbidden, 404 Not Found, or 500 Internal Server Error, Copilot displays the generic “This content cannot be used” message instead of the specific error.

Common triggers include:

• File-level permissions: You have access to the document library but not to the specific file. For example, a SharePoint site member may see the library but lack Read permissions on a file stored in a restricted folder.
• Missing or expired Graph consent: The tenant admin has not granted the required Microsoft Graph permissions for Copilot, or the consent has expired after a policy change.
• Data source misconfiguration: The admin has not added the relevant SharePoint site or OneDrive account as a data source in the Copilot settings.
• File format or corruption: Copilot cannot process password-protected files, files with unsupported extensions like .zip or .exe, or files that are corrupted.

Steps to Fix the “This Content Cannot Be Used” Error

Method 1: Verify File Permissions in SharePoint or OneDrive

1. Open the file in your browser
   Navigate to the SharePoint site or OneDrive folder where the file is stored. Open the file directly in the browser to confirm it loads without errors. If the file does not open, you lack access.
2. Check sharing permissions
   Right-click the file in SharePoint or OneDrive and select Manage access. Look for your user account in the list. If you do not appear, click Share and add your email address with at least Read permissions.
3. Test with a different file
   Create a new Word document in the same library and save it. Ask Copilot to summarize that document. If the new file works, the original file has a permission issue or is corrupted.

Method 2: Enable Microsoft Graph Data Sources in the Admin Center

1. Sign in to the Microsoft 365 admin center
   Go to admin.microsoft.com and sign in with a Global admin or Copilot admin account.
2. Open the Copilot settings
   In the left navigation, select Settings then Copilot. This opens the Copilot configuration page.
3. Select the Data sources tab
   Click the Data sources tab. Under Microsoft Graph, verify the toggle is set to On. If it is off, turn it on and click Save.
4. Add SharePoint sites or OneDrive accounts
   Click Add data source and select SharePoint or OneDrive. Enter the URL of the site or account that contains the files Copilot needs to read. Click Add then Save.

Method 3: Reassign or Verify the Copilot License

1. Go to the Users section
   In the Microsoft 365 admin center, select Users then Active users.
2. Select the affected user
   Click the user name to open the details panel. Go to the Licenses and apps tab.
3. Check the Copilot license
   Look for Copilot for Microsoft 365 in the license list. If it is not assigned, check the box and click Save changes. If it is assigned, uncheck it, save, then check it again to refresh the license.

Method 4: Clear the Copilot Cache in the Desktop App

1. Close all Microsoft 365 apps
   Exit Word, Excel, PowerPoint, and Outlook completely.
2. Open the Run dialog
   Press Windows key + R on your keyboard.
3. Delete the Copilot cache folder
   Type %localappdata%\Microsoft\Office\16.0\Licensing and press Enter. Delete all files inside the Licensing folder. Restart Word and try the Copilot action again.

If Copilot Still Has Issues After the Main Fix

Copilot Returns Generic Output Instead of Tenant-Specific Data

This happens when the Microsoft Graph data source is enabled but the file is stored in a location not added to the data sources list. Go back to the admin center and add the exact SharePoint site URL or OneDrive account that contains the file. Wait 15 minutes for the change to propagate, then test again.

Error Persists for All Users in the Tenant

If every user sees the same error, the tenant-level Graph consent may be missing or expired. Sign in to the Azure portal as a Global admin. Go to Enterprise applications then Microsoft Graph. Under Permissions, verify that Files.Read.All and Sites.Read.All are granted. If they are missing, click Grant admin consent for the entire tenant.

Copilot Cannot Read Files on a Local Drive

Copilot only works with files stored in OneDrive, SharePoint, or Microsoft 365 cloud storage. Files saved to your local C: drive or an external USB drive are not accessible. Move the file to OneDrive or SharePoint, then reopen it from the cloud location before using Copilot.

Copilot Error vs Similar Microsoft 365 Errors: Key Differences

Item	“This Content Cannot Be Used” Error	“Copilot Is Unavailable” Error
Description	Copilot cannot read a specific file or data source	Copilot service itself is down or blocked
Primary cause	File permissions, missing data source, or corrupt file	License issue, network outage, or admin policy
Scope	Single file or document library	Entire Copilot feature across all apps
Fix location	File permissions, admin center data sources	License assignment, service health dashboard
Error message example	“This content cannot be used. Try a different file.”	“Copilot is currently unavailable. Please try again later.”

Now you can identify the root cause of the “This content cannot be used” error and resolve it by checking file permissions, enabling Microsoft Graph data sources, or reassigning the Copilot license. Start with the file permission check because it resolves the majority of cases. If the error persists for all users, verify the tenant-level Graph consent in the Azure portal. As an advanced tip, use the Microsoft 365 admin center audit log to track which API call failed by searching for “Copilot” in the audit log and filtering by the exact time of the error.