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Microsoft 365 Copilot (Business)
Microsoft 365 Copilot (Business)
 
Risk Overview
Minimal Risk
2
/10
Text Generation
·
Productivity Assistant
·
Document Analysis
·
Conversational AI
·
Top Risks

M365 Copilot has broad agentic access to email, calendar, Teams meetings, SharePoint documents, OneDrive, and other Microsoft 365 services. Copilot Agents can take autonomous actions across these surfaces. Scope of data access is the widest of any enterprise AI tool — essentially the full Microsoft 365 estate.

Mitigations

Review and configure Microsoft Purview sensitivity labels and DLP policies before deployment. Scope Copilot access using Microsoft 365 Groups and SharePoint permissions — Copilot can only access what the user already has access to. Enable Copilot audit logs in the Microsoft Purview compliance portal. Use Communication Compliance policies to monitor Copilot interactions for regulated industries. Review the Copyright Commitment scope and confirm it covers your use case.

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Highest Risk Categories

The highest-scoring risk categories identified in this assessment.

3rd-Party Sharing

Governed by Microsoft Online Services Terms and Data Processing Addendum. Sub-processors used for service delivery only, listed in the Online Services Subprocessor List. No advertising data sharing. Data not sold or shared with third parties for independent training. Strong contractual data isolation from consumer Microsoft services.
3
/10

Data Sovereignty

US company subject to CLOUD Act. However, EU Data Boundary commitment processes and stores EU enterprise data within the EU. Geo-residency options available. GDPR-compliant DPA. Microsoft has a documented history of legally challenging government data requests (Microsoft v. United States). Strong enterprise sovereignty controls — meaningfully better than consumer.
3
/10

Data Retention

Customer-controlled data retention. Transient prompts/responses processed in-memory and not persisted by default beyond the session. Admins can configure Microsoft Purview retention policies. Copilot interaction data stored in the user's Exchange Online mailbox (customer-controlled). Full audit log available.
2
/10

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Updated July 2026 • AI-assisted research • Reviewed by Verax • Report an issue

Reference Documentation

Official documentation and policies referenced as part of this assessment.