Microsoft 365 Copilot Deployment Briefing

1. Overview of Copilot Offerings

Feature Microsoft 365 Copilot (Education Faculty) Microsoft 365 Copilot Chat
License/Cost Paid add-on for education accounts (A3, A5, etc.) Included at no extra cost, but limited to light, non-sensitive use only. Not approved for College data.
Integration Embedded in Word, Excel, PowerPoint, Outlook, Teams, OneNote Web, Teams, Outlook, Copilot app
Data Access Direct access to organizational data (emails, files, Teams, SharePoint, OneDrive) respecting permissions Web data only (unless a file is manually uploaded by the user)
Education Features Lesson creation, grading rubrics, quizzes, feedback tools No specific education tools
Security & Compliance Enterprise-grade, honors Microsoft 365 permissions, Purview labels, DLP Enterprise-grade, but limited to chat data scope only
Best Use Case Deep workflow integration for teaching/admin work Light, non-sensitive brainstorming or general information tasks (not for College data)
 

2. Data Privacy Risks & Safeguards

Note: These risks primarily apply to the enterprise version of Copilot. Copilot Chat should never be used with College data.

Key Risks in Deployment

  • Unauthorized Access – Users could surface sensitive files if permissions are too broad.
  • Prompt Injection – Malicious prompts attempting to retrieve restricted data.
  • Residual Access – Ex-employees retaining data visibility.
  • Over-aggregation – Copilot summarizing content from multiple sources the user technically has access to but shouldn’t use in certain contexts.

Built-in Protections

  • Role-Based Access Control (RBAC) & tenant isolation
  • Honors Microsoft Purview sensitivity labels & DLP
  • Data encryption at rest and in transit
  • Tenant data not used for AI training
  • Data residency and GDPR compliance

Best Practices for Privacy

  • Audit & tighten SharePoint/OneDrive/Teams permissions regularly
  • Apply and enforce sensitivity labels on sensitive content
  • Use DLP for Copilot (to block certain content from AI responses)
  • Educate staff to avoid prompts requesting inappropriate/internal data
  • Do not input College data into Copilot Chat; restrict its use to general, low-risk brainstorming only
  • Monitor audit logs for unusual Copilot activity

3. Policy & Restriction Options

These restrictions apply to enterprise Copilot. Copilot Chat is not connected to College systems and should not be used with College data.

Goal Example: Limit Copilot to only reference files a user created or stored in their OneDrive.

Policy Approaches

  • Restrict user permissions so they cannot see others’ files unless explicitly shared
  • Remove Copilot search indexing from SharePoint or Teams sites (site-level search restriction)
  • Use Microsoft Purview DLP for Copilot to block referencing files unless the user is the owner
  • Disable external sharing and org-wide sharing for sensitive storage locations
  • Combine permissions, DLP rules, and sensitivity labels for a layered restriction

Caveats

  • No single “toggle” to limit to “created by me” files — must be enforced via permissions + metadata rules
  • Requires ongoing governance and regular reviews
  • May need Microsoft 365 E5 licensing for advanced DLP

4. Deployment Challenges & Obstacles

Challenge Description Mitigation
Permissions Sprawl Historic over-sharing in SharePoint/Teams may allow Copilot to surface unintended files Conduct pre-deployment permissions audit and clean-up
Cultural Readiness Users may not understand AI risks or best practices Provide training on safe prompt use and data handling, including clear guidance on where Copilot Chat is acceptable and where only enterprise Copilot should be used
Technical Scope Some restrictions (like “files created by me only”) are complex to fully enforce Layer DLP, sensitivity labels, and site restrictions
Feature Gaps Copilot Chat lacks deep M365 integration Deploy both where relevant, define which employees get premium add-on
Licensing Cost Education Faculty add-on has per-user cost Assign only to high-need roles; consider phased rollout
Policy Maintenance DLP and permissions need ongoing review Set quarterly policy and access reviews

5. Recommendations for Best Path Deployment

  1. Phase 1: Assessment
    • Inventory current permissions
    • Identify sensitive data locations
    • Determine which roles need premium Copilot vs. Chat
  2. Phase 2: Controlled Pilot
    • Enable Copilot for a small test group under restricted policy set
    • Monitor usage and adjust restrictions (permissions, DLP rules)
  3. Phase 3: Educate
    • Training in AI safety, data privacy, responsible prompt engineering, with emphasis on differentiating between Copilot Chat (low-risk only) and enterprise Copilot (secure, governed)
  4. Phase 4: Scale with Governance
    • Apply least privilege principles org-wide
    • Continue auditing, patching, and policy updates

Key Takeaway:

Deploying Microsoft 365 Copilot effectively is less about the AI itself and more about robust data governance, targeted licensing, and change management. Copilot Chat is a limited-use tool for non-sensitive brainstorming, while enterprise Copilot requires strong safeguards (permissions, DLP, sensitivity labeling) before broad adoption. Technical controls exist to limit exposure, but their success depends on policy enforcement and user behavior.

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