The GDPR reality of Microsoft 365 + AI
Using AI features like Copilot inside Microsoft 365 raises real questions about the safety of customer data. Many businesses assume the data is safe because it "stays in our own Microsoft account." That assumption deserves more scrutiny than it usually gets.
What actually happens to customer data
When you use AI features inside Microsoft 365, customer data is processed by Microsoft's AI models. That immediately raises GDPR questions. Under GDPR you're required to properly assess your data processor — in this case Microsoft — and have the right agreements in place before that processing happens, not after.
The limits of the Data Processing Agreement
A common misconception is that the Data Processing Agreement (DPA) with Microsoft covers every risk. It doesn't. The DPA does not protect against every form of data processing — for example, if an AI feature uses customer data to help improve its underlying models, that can itself amount to a GDPR violation, regardless of what the DPA says.
Settings and agreements worth getting right
- Data minimisation: share as little data as possible with AI tools.
- Purpose specification: be explicit about what each use case is for.
- Check the privacy settings: make sure Microsoft 365's privacy settings are actually configured the way you assume they are.
What to watch for when rolling out AI
It helps to use a simple decision tree when assessing AI use inside your business — weighing the risks of a given AI application against its benefits before switching it on, rather than after.
Conclusion
AI inside Microsoft 365 can bring real advantages, but Dutch SMEs need to stay aware of what it means for customer data. Want to know where your business stands on AI and GDPR? Take a look at our free compliance scan to see exactly where you stand.
If you need further advice on this topic, AI Advies Bureau can help you make the right choices for your business.