Insights

As more organisations attempt to work out how to introduce AI in the workplace, many are wondering what the risks of Microsoft 365 Copilot are before licensing users.

What are the risks of Microsoft 365 Copilot, and what should you address before licensing users?

Many organisations want to get started with Copilot quickly but also want to do it safely.

In this article, we focus specifically on the technical readiness risks you should consider before turning Copilot on, not covering other phases of a Copilot rollout such as User Adoption.

This is about your preparing your Microsoft 365 environment and the data Copilot will rely on.

TLDR: The key risks to consider

During technical readiness, the main Microsoft 365 Copilot risks are straightforward but it’s important to consider:

• Copilot does not bypass permissions, but it can surface information users already have access to, even if that access was never intended.
• Poor permissions and oversharing become much more visible.
• Out of date or duplicated content increases the risk of inaccurate or confusing answers.
• The risks of weak data governance will be amplified.

Basically, Copilot is only as safe and as useful as the data estate it sits on top of.

What happens when you turn on Microsoft 365 Copilot?

When you assign a user a Microsoft 365 Copilot licence, Copilot can help them find information across Microsoft 365 and generate new content based on that information.

Behind the scenes, Copilot uses the Microsoft Graph (i.e. the APIs and data model that underpins and links all your Microsoft 365 services) to retrieve data from services such as SharePoint, OneDrive, Outlook and Teams. Crucially, all of this happens in the context of the user.

Copilot can’t see anything a user couldn’t already see before they acquired a Copilot licence. This is one of the most common misconceptions, but Copilot doesn’t break permissions or grant new access.

However, that doesn’t mean it doesn’t come without risk.

The risk of exposing information the user isn’t meant to see

While Copilot cannot access new data, it can surface information that users technically have access to but probably shouldn’t.

This usually comes down to poor permissions management. Files saved in the wrong location, SharePoint sites shared too broadly, or documents that were never properly secured can all be pulled into Copilot responses.

These risks already exist today. Tools like Microsoft 365 Search have always been able to surface this content, but Copilot simply makes it faster, more visible and uses the data in in its generated responses.

If sensitive or inappropriate information is accessible today, Copilot is likely to highlight that weakness very quickly.

The risk of inaccurate or incoherent answers

The other big risk is poor quality information informing Copilot’s responses.

If your organisation stores multiple versions of the same document, outdated policies, or conflicting guidance, Copilot has no way of knowing which is correct. It will attempt to synthesise an answer from what it finds.

For example, if four different versions of a maternity policy exist and you ask Copilot a simple question about it, the answer may be inconsistent, misleading or completely incorrect. Yet it may sound very confident in its answer regardless.

Copilot isn’t totally to blame for the incorrect answer. It’s simply a reflection of the harsh reality that your content estate is poorly maintained without sufficient governance.

Summarising the risks of Copilot

From a technical readiness perspective, the core risks of Microsoft 365 Copilot are clear:

• Copilot can surface information users shouldn’t have access to, even if that access already existed.
• Copilot can generate confident answers based on outdated, duplicated or poorly governed content.

Both risks stem from the same underlying issue, i.e. weak data governance. Oversharing, incorrect file locations, weak sensitivity labelling and inconsistent content lifecycle management all amplify the impact, even though Copilot doesn’t cause them.

How to get started with Copilot quickly while mitigating risks

The good news is that Copilot readiness doesn’t need to be a blocker. Many organisations take a phased approach.

It’s possible to start small with a Copilot pilot, apply strong information protection and governance controls as guardrails, and then expand access over time.

This allows teams to realise value quickly while buying time to tackle broader governance challenges in a more controlled way. SharePoint sites can be reviewed and brought into scope gradually, rather than all at once.

It’s also important to recognise that data governance isn’t a ‘one-off project’. It’s about continuous improvement. Permissions will drift, new sites will be created, and content will become stale.

Approaching governance as a continual process is the most effective way to optimise Copilot’s long-term value while maintaining organisational compliance with general data regulations (an objective that is potentially of even greater importance).

Summary

Microsoft 365 Copilot can deliver significant productivity benefits when introduced responsibly.

The risks are there, but they are manageable. With the right approach to technical readiness and a strong focus on data governance, Copilot will be safer, more accurate and far more valuable.

The associated benefits of improved data protection and governance will benefit the organisation in many other ways that just AI adoption, making it a valuable and sensible investment for businesses long-term.

FAQs

Does Microsoft 365 Copilot expose data users don’t have permission to see?

No. Copilot only accesses data a user already has permission to view. It doesn’t bypass security controls or grant new access. However, it can surface existing oversharing issues more quickly.

What is the most common risk of using Microsoft 365 Copilot?

The most common risk comes from poor data governance. Broad permissions, oversharing and outdated content can lead to sensitive information being surfaced or inaccurate answers being generated.

Why does Microsoft 365 Copilot sometimes give inaccurate answers about our company content?

Microsoft 365 Copilot relies on existing organisational content being fresh and correct. If multiple or outdated versions of documents exist, Copilot may summarise conflicting information. Improving content quality and data lifecycle management improves accuracy.

Is Microsoft 365 Copilot safe for regulated industries?

Yes, when appropriate security, compliance and information protection controls are in place. Copilot inherits Microsoft 365 permissions and policies, so strong governance and controls are essential.

Do organisations need to clean up data before enabling Copilot?

A full clean-up isn’t required, but reviewing high-risk permissions and oversharing before rollout significantly reduces risk. Many organisations start with a phased Copilot pilot.