Copilot and Your Data: What It Can and Can't See

Overview

The number one question about Copilot: “If it can read all my organization’s data, does that mean I can now see things I shouldn’t?” This concern is especially critical in government environments where data classification and access controls are fundamental to operations.

The short answer: No. Copilot doesn’t give you new permissions. This video breaks down exactly what Copilot can and can’t see, how existing security controls apply, and what the real data governance concerns are when deploying Copilot.

What You’ll Learn

• Permission Inheritance: How Copilot operates with YOUR identity and YOUR permissions
• Security Controls: What controls limit Copilot’s data access (permissions, labels, DLP)
• Boundaries: What Copilot explicitly does NOT access
• Oversharing Risk: Why governance matters more than Copilot’s capabilities
• Government Context: How data boundaries work in GCC, GCC High, and DoD

Script

Hook

The number one question we hear: “If Copilot can read all my organization’s data, does that mean I can now see things I shouldn’t?”

Short answer: No. Copilot doesn’t give you new permissions. Let’s break down exactly what Copilot can and can’t see.

The Core Principle: Your Permissions Equal Copilot’s Permissions

Copilot operates with YOUR identity and YOUR permissions. If you can’t open a document yourself, Copilot can’t read it for you. If you can’t see someone’s email, Copilot can’t summarize it for you.

Think of it like asking your assistant to find files for you. They can only access what you can access. They can’t magically unlock doors you don’t have keys to.

Copilot is not a backdoor. It’s not an elevation of privilege. It’s a search and synthesis tool that operates within your existing access.

This is enforced at the Microsoft Graph level. Every query Copilot makes checks your permissions first. Access control happens before Copilot processes anything.

What Controls Copilot’s Data Access

Let’s get specific about what actually controls what Copilot can see.

First, SharePoint and OneDrive permissions. Site permissions, document-level permissions, sharing links. If a document is shared with “Anyone in the organization,” Copilot can surface it for you. If it’s restricted to a specific group you’re not in, Copilot won’t show it to you.

Second, sensitivity labels. Copilot respects Microsoft Purview sensitivity labels completely. Encrypted files stay encrypted. Labels that prevent sharing prevent Copilot from including that content in responses.

Third, Data Loss Prevention policies — DLP. DLP rules apply to Copilot outputs. If a policy blocks sharing sensitive content like credit card numbers or classified information, Copilot won’t include it in responses.

Fourth, Exchange permissions. Copilot can read your mailbox and any shared mailboxes you have explicit access to. It cannot read someone else’s mailbox unless they’ve explicitly shared it with you.

And fifth, Teams permissions. Copilot sees channels and chats you’re a member of. Private channels you’re not in are invisible to Copilot. Simple as that.

In GCC High and DoD, all these controls operate the same way, but within your tenant’s security boundary. Cross-tenant access is blocked by default. Your data doesn’t leave your environment.

What Copilot Does NOT Access

Let’s be clear about what Copilot explicitly does NOT access.

Data in other tenants. Your organization is isolated. Data you don’t have permission to see. Historical data from before you joined a project, unless you’re granted retroactive access. Deleted items, unless you have access to the recycle bin or retention holds. Personal OneDrive or consumer Microsoft accounts.

Copilot’s reach is bounded by your reach. It’s not omniscient. It doesn’t see everything in your organization — only what you’re authorized to see.

Oversharing Risk: The Real Concern

Here’s the thing: the actual risk isn’t that Copilot bypasses security. The risk is that your organization has overshared content.

“Everyone” permissions on sensitive documents. Public Teams channels containing private information. Old SharePoint sites with outdated access that nobody’s cleaned up.

Before Copilot, that overshared content sat there unnoticed. Nobody was searching for it. Nobody stumbled across it. With Copilot, it surfaces in summaries and answers. Copilot makes oversharing visible.

This is a governance opportunity, not a Copilot problem. If Copilot surfaces something you shouldn’t see, that’s a signal to fix the underlying permissions — not to blame Copilot.

Our recommendation for government agencies: audit permissions before rolling out Copilot. Find what’s overshared. Lock it down. Then deploy Copilot with confidence.

Trust and Verification

You can verify what Copilot sees. Check document permissions in SharePoint. Review sensitivity labels. Test with a pilot group before broad rollout.

And Copilot is transparent about sources. It cites where information comes from. You can always click through to the original file to verify access.

Copilot respects your organization’s security model. It doesn’t create new risks — it reveals existing ones.

Sources & References

• Microsoft 365 Copilot Privacy — Data access model, permission inheritance, privacy architecture
• Copilot and Microsoft Purview — How sensitivity labels and DLP policies apply to Copilot
• SharePoint Copilot Best Practices — SharePoint permissions and best practices for Copilot readiness