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Microsoft Clarifies Employee Use of Copilot: Shadow IT Allowed, Compliance Needed

Microsoft supports employee use of Copilot with personal subscriptions, fostering innovation. However, companies must manage and control usage to maintain data protection and compliance.

In this image there is a machine in the center with some text written on it. In the background...
In this image there is a machine in the center with some text written on it. In the background there is a stand which is black in colour and on the right side there is a machine.

Microsoft Clarifies Employee Use of Copilot: Shadow IT Allowed, Compliance Needed

Microsoft has clarified its stance on employee use of Copilot, its AI-powered productivity tool, within enterprises. The tech giant allows employees to use personal Microsoft 365 subscriptions to access Copilot features at workplaces that don't provide AI tools, a practice known as 'shadow IT'. However, companies must ensure they comply with relevant privacy and compliance regulations.

Microsoft endorses this practice, stating that it supports employee productivity and innovation. However, it's crucial for companies to manage and control the use of Microsoft products, including Copilot, to maintain data protection and compliance. Personal free versions of Copilot are generally unsuitable for enterprise use due to data usage terms.

Microsoft offers enterprise agreements to support corporate use of Copilot. These agreements include commercial data protection, extended admin controls, and compliance APIs. IT admins can disallow personal Copilot usage on work documents and audit personal Copilot interactions to maintain data security and privacy. Employees can sign into Microsoft 365 apps using both personal and work accounts, allowing them to use Copilot features from their personal plan for business documents.

Microsoft's stance on employee use of Copilot with personal subscriptions encourages workplace innovation while emphasizing the importance of enterprise control and compliance. Companies must weigh the benefits against potential data protection and compliance risks before allowing such usage.

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