Microsoft’s recent release of Copilot—a powerful AI integration across Windows, Office, Bing, and GitHub—has fast-tracked AI into the daily workflows of millions of users. But as with all powerful tools, Copilot comes with security and privacy considerations you can’t afford to ignore.
In this guide, we’ll cover what Microsoft Copilot actually accesses, how to protect your data, and what practical steps your organization should take before enabling Copilot in your Microsoft 365 environment.
What Is Microsoft Copilot?
Copilot is Microsoft’s brand for integrating large language models (LLMs) into its ecosystem. You’ve probably seen it in tools like:
- GitHub Copilot for coding assistance
- Bing Chat (now Copilot) for AI-powered search
- Office Copilot for AI support in Word, Excel, Outlook, and PowerPoint
With general availability rolled out at speed, Copilot is already a part of many enterprise users’ day-to-day experience—but many are still unclear about its data access, security posture, and potential for unintentional exposure.
Does Copilot Train on My Data?
Before diving into access controls, it’s important to address a common fear: is Copilot learning from everything we do? Let’s set the record straight.
No, Microsoft Copilot does not train on your organization’s data. However, it does use your data to generate responses—which is where understanding user context becomes critical.
Key facts:
- Your data is not retained by the LLM.
- Data residency aligns with Office 365; most Australian data remains local.
- Some metadata may be processed in the U.S.
- Microsoft offers a Copyright Commitment that covers legal protection for Copilot use cases: Read more here
What Is "User Context" and Why It Matters
User context = everything a user has access to.
Copilot doesn’t elevate permissions—but it surfaces data from within a user’s existing access. That means:
- Poor access control = high risk
- Old or redundant data = risky discoverability
- Outdated policies = unpredictable Copilot behavior
Example: A user asks Copilot about leave policies. If older HR documents are still accessible, the AI might return an outdated version.
6 Steps to Secure Your Data Before Enabling Copilot
Now that we understand the implications of user context, let’s dive into practical ways you can prepare your environment before rolling out Copilot.
1. Restructure SharePoint and Teams
- Identify and label sensitive repositories with Sensitivity Labels
- Archive old or duplicated data (e.g., P&Ls, branding material)
- Set outdated SharePoint sites to not index (removes from Org-wide Copilot access)
- Archive inactive Teams channels
⚠️ Note: Non-indexed content is still accessible to individual users who have permissions—it’s just less discoverable.
2. Apply Sensitivity Labels at Scale
Use Microsoft Purview to:
- Auto-classify data based on content (PII, finance, HR, etc.)
- Prevent sensitive data from being printed, copied, or saved externally
- Define access restrictions that override default sharing
Copilot respects Purview’s data classification more than raw access permissions.
3. Review and Restrict Sharing Policies
- Check your default tenant-level sharing settings
- Limit sharing to verified domains or internal use only
- Audit who has access to shared documents—especially those with “anyone with the link” permissions
4. Refine Access Control
- Use Dynamic Groups to enforce department-based access
- Require MFA and Conditional Access for high-value data
- Implement Privileged Identity Management (PIM) for time-limited access elevation
- Run Access Reviews regularly
5. Reinforce Data Protection Practices
- Understand where your sensitive data lives
- Identify how data flows through your org
- Enable data archiving and shredding practices
- Reassess whether you need to store PII like passport or driver’s license numbers
6. Build a Copilot Community and Assign Data Stewards
- Nominate internal champions and superusers
- Assign ownership over sensitive repositories
- Encourage staff to report inappropriate access (and reward that honesty)
"I once reported I had access to the Managing Director’s HR folder. That kind of honesty should be encouraged—not punished."
What About Bad Actors?
Even with all these proactive measures, it’s essential to consider how this technology could be misused—especially if it falls into the wrong hands.
Copilot doesn’t give users more access—but it makes the access they already have much more powerful.
In a compromise scenario, a malicious actor with Copilot access could:
- Discover and extract sensitive data faster
- Exploit poorly classified content
- Traverse legacy access paths that were never cleaned up
This makes access hygiene more important than ever.
Licensing and Availability
Copilot is available to subscribers of:
- Microsoft 365 Business Premium / Standard*
- Microsoft 365 E3 / E5
- Office 365 E3 / E5
Business Standard lacks some key features and may not be ideal for full Copilot adoption.
Pricing: AU$44.90/user/month (12-month commitment, no free trial)
Includes:
- Full Copilot integration across Word, Excel, PowerPoint, Outlook
- Ability to build branded slide decks, reply to emails, and retrieve files
Bonus Tip: Follow CIS Controls for Long-Term AI Security
To complement your Copilot readiness strategy, it’s worth grounding your work in broader security frameworks. That’s where the CIS Controls come in.
Explore the CIS Critical Security Controls to align your AI rollout with proven best practices. Start with:
- Access Control (Control 6)
- Data Protection (Control 3)
Final Thoughts
As Copilot becomes more deeply embedded in Microsoft 365, IT teams and decision-makers have a chance to lead with intention. By approaching this rollout with clear guardrails, you don’t just protect your data—you empower your people.
Microsoft Copilot is a massive leap forward—but with great power comes great responsibility. By securing your environment before enabling Copilot, you set your team up for smarter, safer productivity.
📘 For more practical tips on securing your digital life, check out my free guide: secureinseconds.com
Let’s make AI work for us—not against us.
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