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Microsoft CoPilot and Client Data: What Law Firms Need to Know

  • Jul 30
  • 3 min read
How Microsoft 365 CoPilot Keeps Client Data Private While Enhancing Legal Productivity

If you're a law firm considering Microsoft 365 CoPilot, one of the first questions you might ask is:

“Is CoPilot reading our files? What about our communications? Is our data still private?”
A legal professional at his work desk using a laptop.

These are valid concerns—and they deserve clear answers.


Let’s break down what CoPilot actually does, how it handles your data for your clients and cases, and why your confidential information is protected inside your law firm's Microsoft 365 ecosystem.


What is Microsoft CoPilot, Really?


Microsoft CoPilot is a generative AI tool that’s deeply integrated into your existing Microsoft 365 apps—Word, Outlook, OneNote, Teams, SharePoint, and more. It helps you work faster and smarter by summarizing, drafting, analyzing, and organizing information you already have access to.


But unlike public-facing AI tools like ChatGPT, CoPilot doesn’t rely on public data or open-access training. CoPilot works inside your law firm’s secure Microsoft 365 environment.


So, Is CoPilot “Reading” Our Files?


Yes—and no. CoPilot does process your files to generate responses, but only within the secure, private boundaries of your Microsoft 365 tenant. Importantly:


  • CoPilot only uses data your users already have permission to access.

  • It does not store your data outside your tenant.

  • Your data is not used to train the AI.

  • CoPilot follows Microsoft’s enterprise-grade compliance, security, and privacy standards.


Here’s how Microsoft explains it:

“Copilot uses the power of large language models (LLMs) with your content in Microsoft Graph—emails, documents, chats, meetings, and more—to turn your words into the most powerful productivity tool on the planet. And importantly, your data is never used to train the foundation LLMs.”

You can read Microsoft’s full explanation here: Microsoft Learn – Data, Privacy, and Security for Microsoft 365 CoPilot


Why This Matters for Legal Professionals


As lawyers and legal staff, our ethical responsibility is to safeguard confidential client data. It’s part of our duty of competence, confidentiality, and supervision.


Here’s how CoPilot fits into that responsibility:


  • You remain in control. CoPilot doesn’t grant access to new data—it simply makes what you already have more usable.

  • You can restrict access. Use roles and permissions in Microsoft 365 to limit what CoPilot can “see” based on the user’s access level.

  • You can (and should) train your team. Create firmwide policies that define acceptable AI use, draft review protocols, and client communication practices.


Reassure Your Firm, But Stay Smart


It's normal for your team to be hesitant about AI tools. But Microsoft has designed CoPilot specifically for enterprise environments, with law firms, healthcare, finance, and other sensitive industries in mind.


Here’s a quick recap you can share with your team:


✅ Your data stays in your tenant

✅ CoPilot follows your existing permissions

✅ CoPilot does not train on your data

✅ You control who sees what

✅ Microsoft maintains enterprise-level security


Ready to Explore CoPilot? Start with the Right Foundation.


AI isn’t going away—and law firms that embrace it early (with clear ethical guidelines and smart implementation) will be far ahead of the curve.


If you're curious about how CoPilot can fit into your firm’s practice—without compromising data privacy—let's talk. I help legal teams confidently adopt Microsoft 365 tools like CoPilot, SharePoint, OneNote, and Teams in a way that’s secure, scalable, and sustainable.


Coming Next Week: Top 7 Ways to Use Microsoft CoPilot in Your Law Firm


Now that you know your data is safe, it’s time to unlock CoPilot’s true potential. In next week’s blog post, I’ll walk you through seven powerful ways your law firm can use Microsoft CoPilot to boost efficiency, streamline case work, and identify billable tasks you might be missing.


From drafting timelines to summarizing case files, you won’t want to miss these real-world examples (plus the exact prompts you can try in your own firm).


Stay tuned—it’s the kind of post you’ll want to bookmark and share.



If this blog resonated with you, please give it some love by clicking the heart below, leaving a comment, and/or share this blog on LinkedIn and with other law firms and legal professionals looking for more guidance. If you would like to feature this blog in your newsletter or website, please send an e-mail request to:


ree

Misty Murray

CEO | Founder


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