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Microsoft 365 Copilot: A GDPR Risk or Useful Business Tool?

The integration of artificial intelligence (AI) into everyday business operations has been steadily transforming industries worldwide. Microsoft 365 Copilot, the latest AI offering from

Microsoft 365 Copilot improving productivity across all office apps

Microsoft 365 Copilot improving productivity across all office apps

Microsoft, is one of the most talked-about advancements, designed to enhance productivity by automating tasks, generating insights, and offering intelligent assistance across the Microsoft 365 suite. However, as with any AI tool, concerns about data security and compliance have surfaced, particularly with regards to the European Union’s General Data Protection Regulation (GDPR).

So, is Microsoft 365 Copilot a GDPR nightmare, or can it be a powerful tool for your business when used responsibly? Let’s explore.

Understanding Microsoft 365 Copilot

Microsoft 365 Copilot integrates AI-driven capabilities into familiar apps like Word, Excel, PowerPoint, and Teams. From generating summaries of lengthy documents to drafting emails and even offering insights based on internal company data, Copilot aims to reduce manual workloads and increase efficiency.

Microsoft also offers a variety of Copilot-branded products designed for specific sectors, such as Copilot for Security, Copilot for Sales, and Microsoft Copilot (formerly known as Bing Chat). Each of these tools leverages AI to enhance sector-specific operations, whether that’s managing sales pipelines or boosting cybersecurity.

While the potential benefits of Microsoft 365 Copilot are substantial, businesses must also be cautious about the risks it could pose to data protection and regulatory compliance.

GDPR Concerns: A Data Security Tightrope

For companies operating under GDPR, ensuring that AI tools like Microsoft Copilot are implemented safely and securely is paramount. GDPR is all about protecting the personal data of EU citizens, and misuse or accidental exposure of this data can result in hefty fines and reputational damage.

How 365 Copilot Can Cause Compliance Issues

One of the main concerns when deploying AI tools such as Copilot is data indexing. AI models require access to large amounts of data to function effectively. Copilot’s semantic indexing process respects user permissions but can inadvertently expose sensitive data if proper security protocols aren’t in place. If your organisation’s data isn’t labelled correctly or isn’t segmented with strict access control, Copilot may inadvertently provide users with access to information they shouldn’t have.

This can lead to serious GDPR violations, especially if personal data is mistakenly shared across departments or teams. Furthermore, Microsoft’s documentation recommends adopting a Zero Trust architecture, enforcing data sensitivity labels, Data Loss Prevention (DLP) policies, and retention policies to safeguard data.

The Risks of 365 Copilot AI-Generated Inaccuracies

Beyond data protection, there’s another significant risk: AI-generated inaccuracies. Microsoft 365 Copilot could potentially draw on outdated or incorrect data from your systems, creating outputs that misinform employees or lead to flawed decision-making. For example, if your business stores older spreadsheets or documents that contain inaccurate information, Copilot may include these errors in its responses, affecting the quality of insights.

These inaccuracies may not just impact internal operations but could also extend to client-facing communications, which is a potential reputational risk.

Promoting the Safe Use of Microsoft 365 Copilot

Despite these challenges, Microsoft 365 Copilot can be a highly valuable tool when deployed responsibly. To ensure safe use, consider these best practices:

  1. Conduct a Full Security Review Before Deployment

    Before activating Microsoft 365 Copilot, Microsoft strongly advises organisations to carry out a comprehensive security review. This ensures that all data within your environment is properly classified and protected. Data sensitivity labels, access controls, and retention policies must be in place to avoid accidental exposure of confidential or sensitive information.

  2. Employ Zero Trust Security Principles

    The Zero Trust model assumes that every attempt to access company data could be a potential threat, and therefore, every access request must be authenticated, authorised, and validated. Implementing this alongside multi-factor authentication (MFA) can further secure your data from internal and external threats.

  3. Establish Clear Data Loss Prevention Policies

    Data Loss Prevention (DLP) technologies prevent sensitive information from being shared or accessed inappropriately. DLP solutions monitor your data’s movement within the organisation and block unauthorised attempts to share it.

  4. Keep Your Data Clean and Up-to-Date for 365 Copilot to Use

    Make sure that old, obsolete, or inaccurate data is either updated or archived. Regularly auditing the data within your organisation ensures that Copilot draws from accurate, relevant information.

  5. Partner with a Microsoft Solutions Partner

    Setting up Microsoft 365 Copilot can be complex, especially when you factor in all the necessary security and compliance measures. To avoid missteps, it’s recommended to work with a certified Microsoft Solutions Partner. These professionals can assist in deploying and configuring Copilot to suit your organisation’s specific needs, ensuring you comply with GDPR regulations and mitigate the risk of data leakage.

Advantages of Working with a Microsoft Partner

Partnering with a Microsoft Solutions Partner brings additional peace of mind. These experts have an in-depth understanding of Microsoft technologies and how to integrate them into business environments securely. By doing so, they can help you:

  • Properly assign and enable Microsoft 365 Copilot licences to your account, avoiding any technical or administrative errors.
  • Perform thorough security audits and help you establish appropriate access controls and DLP policies to ensure GDPR compliance.
  • Offer guidance on how to maximise the tool’s potential while minimising risks.
  • Provide ongoing support for any Copilot-related issues or updates.

To give an example, the cost of deploying a Microsoft 365 Copilot licence is £296.40 per user per year, with a small amount of time dedicated to setting up and enabling it. Although the licence cost is transparent, the real value lies in ensuring the AI is implemented securely and effectively through expert help.

Conclusion: A Tool with Great Potential, If Used Wisely

Microsoft 365 Copilot can be a transformative tool for your business, streamlining operations, improving productivity, and offering powerful insights. However, its use must be approached with caution. The risks surrounding GDPR compliance and data security are real, but with the right strategies in place — such as a strong security framework and accurate data management — those risks can be minimised.

Most importantly, by working with a Microsoft Solutions Partner, you can ensure that your organisation benefits from Copilot’s AI capabilities without sacrificing compliance or data security.

If you’re considering deploying Microsoft 365 Copilot for your organisation, get in touch with a Microsoft Partner today to get a tailored quote and detailed guidance on how to implement it safely.