When Microsoft Copilot arrived, it promised to change the way we work. But along with the excitement came a wave of security myths that spread faster than facts.
As an Australian business considering Copilot, you’ve probably heard everything from “it steals your data” to “it’s not safe for government use.
At CG TECH, we help organisations unlock the full potential of AI securely and confidently.
Let’s look at what’s true about Copilot security and what’s just fear-mongering.
Myth #1: “Microsoft shares your data with OpenAI”
The reality
This is completely false for enterprise users.
One of the most common myths is that Microsoft shares your data with OpenAI to train their models. This confusion often comes from mixing up the consumer and enterprise versions of Copilot.
Here’s the truth: Microsoft 365 Copilot runs inside your organisation’s Microsoft 365 tenant. Your data stays within the Microsoft ecosystem and is never shared with OpenAI or any other third party.
As Microsoft clearly states, “We don’t share your data with OpenAI” and “your data is not used to train or improve foundational AI models.”
This privacy commitment is a big reason why many Australian businesses trust Copilot.
Myth #2: “Copilot creates new security vulnerabilities”
The reality
Copilot exposes existing security issues rather than creating new ones.
Many organisations worry that Copilot introduces new risks. In reality, Copilot acts like a bright light, making hidden security gaps more visible. If your SharePoint permissions are messy, Copilot might highlight that mess.
If employees can access files they shouldn’t, Copilot might help them find those files faster. But these problems were there long before Copilot.
This is actually an opportunity. By showing where permissions and governance need improvement, Copilot helps organisations tighten security and protect sensitive information.
Myth #3: “The US Congress ban proves Copilot is unsafe”
The reality
The Congressional ban was about compliance, not security flaws.
In March 2024, the US House of Representatives banned staff from using Copilot. Many pointed to this as proof of Copilot’s insecurity. In truth, the ban applied to the commercial version of Copilot that didn’t meet specific government compliance standards.
Microsoft responded by developing a government-compliant version of Copilot with stronger controls for federal use. Government security requirements differ greatly from typical business needs.
What’s not suitable for classified data can still be perfectly safe for everyday business use.
We often help clients understand these differences and assess how Copilot fits within their compliance requirements in Australia, including IRAP considerations.
Myth #4: “AI hallucinations make Copilot dangerous”
The reality
Hallucinations exist but can be managed with proper training and safeguards.
AI hallucinations happen when a system produces incorrect or made-up information. Copilot is no exception, especially when context is limited. However, Microsoft has built multiple safeguards to reduce these risks, such as grounding Copilot’s responses in your organisation’s actual data.
The best approach is to train staff to verify AI-generated content, just as they would check information from a colleague.
Myth #5: “Copilot lacks proper authentication”
The reality
Copilot relies on enterprise-grade authentication systems.
Some worry that Copilot doesn’t have strong security controls. In fact, Copilot uses the same authentication and security framework as other Microsoft 365 apps, including multi-factor authentication, conditional access, and role-based access controls.
Copilot also respects existing sensitivity labels and data loss prevention policies.
Users can only access data they already have permission to see. If someone doesn’t have access to a document, Copilot won’t show it to them.
This means your existing security measures continue to protect your data when using Copilot.
The real security considerations
Data governance is key
The biggest risk isn’t Copilot itself but poor data governance. Before adopting Copilot, organisations should audit file permissions, clean up old data, and ensure sensitive information is properly protected.
This is good cyber security practice regardless of Copilot but becomes more critical with AI involved.
Prompt injection risks
Researchers have shown that malicious instructions can be hidden in emails or documents to manipulate AI responses. Microsoft has implemented protections, including automated detection and content filtering, to help defend against these attacks.
Data location for Australian businesses
For organisations with data residency needs, it’s important to know where Copilot processes data. Microsoft provides data residency commitments for Australian customers, with options to keep data within Australia.
What successful organisations do
Successful Copilot rollouts share common practices:
Start with data hygiene: Clean up permissions, remove outdated files, and classify data correctly.
Implement strong governance: Define clear policies for data access and Copilot use.
Train users: Teach staff how to use Copilot effectively and verify AI-generated information.
Monitor and audit: Regularly review Copilot usage and permissions to ensure ongoing security.
We’ve guided organisations across government, healthcare, and not-for-profit sectors through this journey, helping them gain productivity without compromising security.
The bottom line
When implemented properly, Microsoft Copilot is secure for business use.
Most security fears come from misunderstandings, confusion between consumer and enterprise versions, or fear of new technology.
Copilot doesn’t create new vulnerabilities. Instead, it highlights existing issues so they can be fixed. It works within your security framework and honours your current permissions.
The biggest risk is adopting Copilot without preparing your data and training your people.
Treat Copilot as a data governance project first, then as a technology rollout. Get your data in order, and Copilot becomes a powerful, secure tool for business transformation.
When Microsoft Copilot arrived, it promised to change the way we work. But along with the excitement came a wave of security myths that spread faster than facts.
As an Australian business considering Copilot, you’ve probably heard everything from “it steals your data” to “it’s not safe for government use.
At CG TECH, we help organisations unlock the full potential of AI securely and confidently.
Let’s look at what’s true about Copilot security and what’s just fear-mongering.
Myth #1: “Microsoft shares your data with OpenAI”
The reality
This is completely false for enterprise users.
One of the most common myths is that Microsoft shares your data with OpenAI to train their models. This confusion often comes from mixing up the consumer and enterprise versions of Copilot.
Here’s the truth: Microsoft 365 Copilot runs inside your organisation’s Microsoft 365 tenant. Your data stays within the Microsoft ecosystem and is never shared with OpenAI or any other third party.
As Microsoft clearly states, “We don’t share your data with OpenAI” and “your data is not used to train or improve foundational AI models.”
This privacy commitment is a big reason why many Australian businesses trust Copilot.
Myth #2: “Copilot creates new security vulnerabilities”
The reality
Copilot exposes existing security issues rather than creating new ones.
Many organisations worry that Copilot introduces new risks. In reality, Copilot acts like a bright light, making hidden security gaps more visible. If your SharePoint permissions are messy, Copilot might highlight that mess.
If employees can access files they shouldn’t, Copilot might help them find those files faster. But these problems were there long before Copilot.
This is actually an opportunity. By showing where permissions and governance need improvement, Copilot helps organisations tighten security and protect sensitive information.
Myth #3: “The US Congress ban proves Copilot is unsafe”
The reality
The Congressional ban was about compliance, not security flaws.
In March 2024, the US House of Representatives banned staff from using Copilot. Many pointed to this as proof of Copilot’s insecurity. In truth, the ban applied to the commercial version of Copilot that didn’t meet specific government compliance standards.
Microsoft responded by developing a government-compliant version of Copilot with stronger controls for federal use. Government security requirements differ greatly from typical business needs.
What’s not suitable for classified data can still be perfectly safe for everyday business use.
We often help clients understand these differences and assess how Copilot fits within their compliance requirements in Australia, including IRAP considerations.
Myth #4: “AI hallucinations make Copilot dangerous”
The reality
Hallucinations exist but can be managed with proper training and safeguards.
AI hallucinations happen when a system produces incorrect or made-up information. Copilot is no exception, especially when context is limited. However, Microsoft has built multiple safeguards to reduce these risks, such as grounding Copilot’s responses in your organisation’s actual data.
The best approach is to train staff to verify AI-generated content, just as they would check information from a colleague.
Myth #5: “Copilot lacks proper authentication”
The reality
Copilot relies on enterprise-grade authentication systems.
Some worry that Copilot doesn’t have strong security controls. In fact, Copilot uses the same authentication and security framework as other Microsoft 365 apps, including multi-factor authentication, conditional access, and role-based access controls.
Copilot also respects existing sensitivity labels and data loss prevention policies.
Users can only access data they already have permission to see. If someone doesn’t have access to a document, Copilot won’t show it to them.
This means your existing security measures continue to protect your data when using Copilot.
The real security considerations
Data governance is key
The biggest risk isn’t Copilot itself but poor data governance. Before adopting Copilot, organisations should audit file permissions, clean up old data, and ensure sensitive information is properly protected.
This is good cyber security practice regardless of Copilot but becomes more critical with AI involved.
Prompt injection risks
Researchers have shown that malicious instructions can be hidden in emails or documents to manipulate AI responses. Microsoft has implemented protections, including automated detection and content filtering, to help defend against these attacks.
Data location for Australian businesses
For organisations with data residency needs, it’s important to know where Copilot processes data. Microsoft provides data residency commitments for Australian customers, with options to keep data within Australia.
What successful organisations do
Successful Copilot rollouts share common practices:
We’ve guided organisations across government, healthcare, and not-for-profit sectors through this journey, helping them gain productivity without compromising security.
The bottom line
When implemented properly, Microsoft Copilot is secure for business use.
Most security fears come from misunderstandings, confusion between consumer and enterprise versions, or fear of new technology.
Copilot doesn’t create new vulnerabilities. Instead, it highlights existing issues so they can be fixed. It works within your security framework and honours your current permissions.
The biggest risk is adopting Copilot without preparing your data and training your people.
Treat Copilot as a data governance project first, then as a technology rollout. Get your data in order, and Copilot becomes a powerful, secure tool for business transformation.
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