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AI Meets Compliance: How to Stay Secure and Legal with Microsoft Tools

By 9th September 2025No Comments

AI is changing the game in business—but it’s also creating new questions about privacy, data protection, and compliance. 

If your organisation is using tools like Microsoft Copilot, Syntex, or Power Automate with AI, you might be wondering: 

“Are we still POPIA or GDPR compliant?” 

Good news: Microsoft has built compliance into its AI ecosystem. But there are still a few key things you need to get right. 

Let’s break it down. 

What’s the Risk with AI and Compliance? 

AI tools are designed to make work easier—summarising documents, generating content, analysing patterns. But to do that, they need access to your data. 

That means: 

  • Emails, chats, and documents may be scanned for context 
  • Internal data could be used to generate outputs 
  • Sensitive information might accidentally be surfaced if access isn’t properly controlled 

Without the right guardrails, that could expose personal data and put you in violation of compliance laws like POPIA, GDPR, or your industry’s own policies. 

How Microsoft Tools Help You Stay Compliant 

Microsoft has invested heavily in AI governance. If you’re using Microsoft 365, you’re already using a platform that includes built-in compliance controls. Here’s what to leverage: 

Microsoft Purview: Your Compliance Command Centre 

Use Purview to: 

  • Automatically classify sensitive data (like ID numbers or banking details) 
  • Apply data loss prevention (DLP) rules to control sharing 
  • Monitor who’s accessing what, and generate audit trails 
  • Create retention and deletion policies that align with legal requirements 

Information Protection Labels + Sensitivity Tags 

These help you control access and protect information as it moves through your organisation. 

Copilot respects these settings—so if a document is confidential, it won’t be used in suggestions or summaries for unauthorised users. 

Access Controls in Entra ID (Azure Active Directory) 

Ensure only the right people can access the right files and apps. Use: 

  • Conditional Access policies 
  • Role-Based Access Control (RBAC) 
  • Multi-Factor Authentication (MFA) 

Policy Tips for AI Use 

  1. Create an AI Usage Policy
    Spell out what employees can and can’t do with AI tools like Copilot, ChatGPT, or Power Automate. 
  2. Train Teams on Privacy-Aware Prompts
    Avoid entering sensitive info into prompts unless you’re certain it’s protected. 
  3. Review User Access Regularly
    Data classification means nothing if everyone can still see everything. 

Common Mistakes to Avoid 

  • Assuming Copilot “knows what not to show”—it follows your current permissions 
  • Letting old SharePoint or OneDrive files float around without classification 
  • Ignoring guest or external user access 

Using AI doesn’t mean giving up on compliance. With the right Microsoft tools and a bit of setup, you can enjoy the benefits of AI and stay secure and legal. 

Need help reviewing your Microsoft compliance setup? 

We can help with Purview configuration, data classification, and Copilot-readiness assessments. 

Call us at 0861 463 737 or get in touch with our team today. 

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