Understanding Data Privacy in Microsoft Copilot for Enterprise and Consumer Use

With the increasing role of AI in daily business and personal tasks, data privacy concerns are at the forefront, especially regarding how interactions with tools like Microsoft Copilot are handled. In a recent episode of the #M365AMA series (Is Microsoft using my Copilot interactions to train their model?), we discussed the security and privacy controls behind using Copilot, and some of the differences between Enterprise Copilot, Consumer Copilot, and using consumer tools like ChatGPT. For this quick post, I thought I’d expand on the topic to help clarify Microsoft’s policies and approaches, hopefully providing some assurance regarding data usage and privacy controls across both enterprise and consumer Copilot versions:

 

Microsoft 365 Copilot: Secure and Private by Design

For enterprise users, Microsoft prioritizes data privacy and security in Microsoft 365 Copilot, ensuring that interactions remain protected and separate from broader model training data.

Key Protections for Enterprise Users

1. Enterprise Data Protection and Privacy Controls
   Enterprise Copilot interactions are treated as private and exclusive to each organization. According to Microsoft’s policy, the prompts, responses, and organizational data accessed by Microsoft 365 Copilot remain within the organization’s control and are not used to enhance or train the broader AI models. Instead, they are bound by the same enterprise-grade security protocols applied to data in Exchange, SharePoint, and other Microsoft 365 tools.
2. User Identity and Access Permissions
   Microsoft 365 Copilot respects user permissions, meaning that it only accesses data that the user has explicit permission to view within the Microsoft 365 environment. Copilot cannot access sensitive documents or data without the appropriate permissions, preventing accidental exposure of confidential information to unauthorized users. Furthermore, Copilot interactions adhere to your organization’s sensitivity labels, retention policies, and administrative settings.
3. Encryption and Isolation
   Copilot data remains encrypted both at rest and in transit, and Microsoft ensures data isolation between tenants. This design ensures that your organization’s data stays secure and inaccessible to users outside your network, reinforcing a robust layer of data privacy.
4. No Use of Enterprise Data for Model Training
   Unlike the consumer version, enterprise interactions within Microsoft 365 are not used to train or improve the underlying AI models. The AI processing happens in a secure, isolated environment that uses private Microsoft Graph data specific to the organization. Microsoft even implements grounding techniques to ensure Copilot’s responses align with organization-specific content and context.
5. Responsible AI and Compliance Framework
   Microsoft applies Responsible AI principles to Copilot, ensuring that it meets ethical, legal, and technical standards. Microsoft’s RAI processes, which wrap around the large language model (LLM), adhere to global compliance frameworks such as GDPR and ISO/IEC 27018, providing extensive protections against unauthorized data access and ensuring transparency and accountability.

Consumer Copilot in Bing and Microsoft Start: Transparency and User Control

For consumers using Copilot in Bing or Microsoft Start, Microsoft is introducing the use of interaction data for model training to enhance the relevance and quality of AI responses. However, user control and transparency remain core principles in this approach.

Key Points for Consumer Data Usage

1. Data Use for Training and Opt-Out Options
   Consumer data from Copilot interactions, including prompts and responses, will now contribute to model training, allowing AI models to improve based on real-world consumer feedback. For instance, popular searches or local references can help the model provide better and more contextually relevant responses. However, users are given a straightforward opt-out option, ensuring that only those who consent will have their interactions used in training.
2. User Transparency and Consent
   Microsoft emphasizes transparency, providing clear notifications to consumers about how their data may be used and ensuring they have control over these settings. Opt-out controls were introduced in October, with Microsoft pausing any data-based training until at least 15 days after users are notified of these options.
3. Privacy Safeguards and Data Anonymization
   Microsoft assures users that any identifying information, such as names, contact details, and sensitive personal data, is removed before data is used in model training. Consumer data remains private, with strict protections against third-party sharing without explicit user consent. Additionally, Microsoft’s privacy protocols mean the AI does not store training data in ways that allow it to reappear in specific responses, aligning with the Microsoft Privacy Statement.
4. Age and Geographic Considerations
   To protect minors and comply with privacy laws worldwide, data from users under 18 and from certain regions, such as the European Economic Area (EEA), will not be used for model training. This ensures that data use policies remain in compliance with international privacy standards.

Maintaining Security and Privacy in Both Environments

Across both enterprise and consumer Copilot versions, Microsoft has designed a layered approach to safeguard user data. Here’s a summary of how data is protected in each environment:

• Enterprise (Microsoft 365 Copilot)
  • Data remains within the organization’s control and is not used for model training.
  • Copilot respects user permissions, sensitivity labels, and organizational security policies.
  • Interactions are encrypted and isolated, preventing unauthorized access.
• Consumer (Bing, Copilot on Windows)
  • Interaction data can be used for model training, but only with user consent.
  • Users can opt-out to maintain control over their data.
  • Data is anonymized, and minors’ data is excluded from training datasets.

Microsoft’s commitment to data privacy and user control means that whether you’re using Copilot as an enterprise or consumer user, you can feel confident in your data’s security and integrity. This approach builds trust and ensures that AI-enhanced experiences align with user expectations for transparency and privacy.

Some additional information on this topic:

• Enterprise data protection in Microsoft 365 Copilot and Microsoft Copilot [https://learn.microsoft.com/en-us/copilot/microsoft-365/enterprise-data-protection]
• Transparency and Control in Consumer Data Use  [https://www.microsoft.com/en-us/microsoft-copilot/blog/2024/08/16/transparency-and-control-in-consumer-data-use/]
• Is my data used to train AI Model behind M365 Copilot? [https://www.linkedin.com/pulse/my-data-used-train-ai-model-behind-m365-copilot-ravisankar-c-c0esc/]
• Risk of Data Overexposure due to Microsoft Copilot for Microsoft 365 [https://www.linkedin.com/pulse/risk-data-overexposure-due-microsoft-copilot-365-ravisankar-c-c7xmc/]
• Risk of Sensitive Data Leakage when you Summarize with M365 Copilot [https://www.linkedin.com/pulse/risk-sensitive-data-leakage-when-you-summarize-m365-copilot-c-z3z0c/]