I have no idea how this will ultimately shake out legally, but it would be absolutely wild for Microsoft to not have thought about this potential legal issue.
I would imagine it can't sign it, especially with the options given.
>I have sole ownership of intellectual property rights to my Submissions
I would assume that the AI cannot have IP ownership considering that an AI cannot have copyright in the US.
>I am making Submissions in the course of work for my employer (or my employer has intellectual property rights in my Submissions by contract or applicable law). I have permission from my employer to make Submissions and enter into this Agreement on behalf of my employer.
Surely an AI would not be classified as an employee and therefore would not have an employer. Has Microsoft drafted an employment contract with Copilot? And if we consider an AI agent to be an employee, is it protected by the Fair Labor Standards Act? Is it getting paid at least minimum wage?