Microsoft 365 Copilot and GDPR: Does your data stay in the EU?
Short answer
Microsoft 365 Copilot doesn't use prompts, responses or your organisation's data to train models, and it is covered by Microsoft's data processing agreement. Data falls under the EU Data Boundary, but new EU customers may have requests processed outside the EU at peak times (flex routing), which an administrator can turn off. Copilot sees everything the user has access to in Microsoft 365 – so permissions on files and emails matter as much as the AI itself.
The biggest risk is access, not AI
Copilot finds and summarises what the user can see. If an employee has access to a folder of payslips, Copilot can use them in an answer too. That is why the first step is to tidy up permissions – which is good practice under GDPR in any case.
When data comes from other systems
If Copilot needs to work on a customer list, a pile of CVs or an export from the payroll system, it is safest if the names don't come along. With GoalCube, data is uploaded in the EU, and Copilot only gets codes. The answer with the real names is shown only on your side.
| Customer | Location | Topic | |
|---|---|---|---|
| Sarah Murphy | sarah.murphy@example.com | Cork | Refund |
| Daniel Kelly | daniel.kelly@example.com | Galway | Delivery |
| Claire Walsh | claire.walsh@example.com | Limerick | Complaint |
| Thomas Camilleri | thomas.camilleri@example.com | Sliema | Delivery |
| Emma Byrne | emma.byrne@example.com | Dublin | Refund |
Enquiry Hi, my name is Sarah Murphy and I returned order 7012345678 two weeks ago, but I still haven't received my money. Please transfer it to IE29 AIBK 9311 5212 3456 78. Kind regards, Sarah
| Customer | Location | Topic | |
|---|---|---|---|
| [PERSON_1] | [EMAIL_1] | [STED] | Refund |
| [PERSON_2] | [EMAIL_2] | [STED] | Delivery |
| [PERSON_3] | [EMAIL_3] | [STED] | Complaint |
| [PERSON_4] | [EMAIL_4] | [STED] | Delivery |
| [PERSON_5] | [EMAIL_5] | [STED] | Refund |
Enquiry Hi, my name is [PERSON_1] and I returned order [ID_1] two weeks ago, but I still haven't received my money. Please transfer it to [IBAN_1]. Kind regards, [PERSON_1]
Sarah Murphy and Emma Byrne are waiting for a refund and should get a reply today. Thomas Camilleri has waited 10 days for a parcel. Suggested reply to Sarah Murphy: "Dear Sarah Murphy, thank you for your patience. Your money is on its way and will be in your account within 5 working days."
[PERSON_1] and [PERSON_5] are waiting for a refund and should get a reply today. [PERSON_4] has waited 10 days for a parcel. Suggested reply to [PERSON_1]: "Dear [PERSON_1], thank you for your patience. Your money is on its way and will be in your account within 5 working days."
| Candidate | Born | ID number | Employer | Experience |
|---|---|---|---|---|
| Louise Brennan | 1985-03-12 | 1234567TA | Shannon Timber Ltd | 12 |
| Michael Doyle | 1992-11-02 | 2345678KB | Liffey Logistics Ltd | 4 |
| Maria Borg | 1988-06-21 | 0123488M | Grand Harbour Metals Ltd | 9 |
| David Fenech | 1979-01-30 | 0456779M | Valletta Pharma Ltd | 18 |
CV Louise Brennan has 12 years' experience in budgeting and monthly reporting at Shannon Timber Ltd. She implemented a new ERP system and leads a team of three. Contact: louise.brennan@example.com.
| Candidate | Born | ID number | Employer | Experience |
|---|---|---|---|---|
| [PERSON_1] | 40–49 years | [ID_1] | [VIRKSOMHED_1] | 12 |
| [PERSON_2] | 30–39 years | [ID_2] | [VIRKSOMHED_2] | 4 |
| [PERSON_3] | 30–39 years | [ID_3] | [VIRKSOMHED_3] | 9 |
| [PERSON_4] | 40–49 years | [ID_4] | [VIRKSOMHED_4] | 18 |
CV [PERSON_1] has 12 years' experience in budgeting and monthly reporting at [VIRKSOMHED_1]. The person implemented a new ERP system and leads a team of three. Contact: [EMAIL_1].
Louise Brennan and Maria Borg have more than 5 years' experience and should be invited to interview; ask Maria Borg about experience with ERP systems. Michael Doyle has 4 years' experience; the requirement is 5. A person makes the decision.
[PERSON_1] and [PERSON_3] have more than 5 years' experience and should be invited to interview; ask [PERSON_3] about experience with ERP systems. [PERSON_2] has 4 years' experience; the requirement is 5. A person makes the decision.
| Supplier | Contact | Account | Expires |
|---|---|---|---|
| Atlantic Components Ltd | Peter Walsh | IE64 IRCE 9205 0112 3456 78 | 2027-01-31 |
| Malta Data Hosting Ltd | Anna Grech | MT84 MALT 0110 0001 2345 MTLC AST0 01S | 2026-12-31 |
| Midlands Precision Ltd | Simon Nolan | IE12 BOFI 9000 0112 3456 78 | 2028-06-30 |
| Celtic Packaging Ltd | Nicole Ryan | IE02 AIBK 9310 6512 9876 54 | 2027-03-31 |
Terms Atlantic Components supplies specialist components for Project Skellig. The price is adjusted annually by the consumer price index plus 3%. Liability is capped at 10% of the annual contract value. Contact Peter Walsh about any changes.
| Supplier | Contact | Account | Expires |
|---|---|---|---|
| [VIRKSOMHED_1] | [PERSON_1] | [IBAN_1] | 2027-01-31 |
| [VIRKSOMHED_2] | [PERSON_2] | [IBAN_2] | 2026-12-31 |
| [VIRKSOMHED_3] | [PERSON_3] | [IBAN_3] | 2028-06-30 |
| [VIRKSOMHED_4] | [PERSON_4] | [IBAN_4] | 2027-03-31 |
Terms [VIRKSOMHED_1] supplies specialist components for [PROJEKT_1]. The price is adjusted annually by the consumer price index plus 3%. Liability is capped at 10% of the annual contract value. Contact [PERSON_1] about any changes.
Atlantic Components Ltd renews automatically unless it is terminated by 31 October. It is important for an internal project, so renegotiate the price rather than terminate. Celtic Packaging Ltd also renews automatically; the deadline is 31 December.
[VIRKSOMHED_1] renews automatically unless it is terminated by 31 October. It is important for an internal project, so renegotiate the price rather than terminate. [VIRKSOMHED_4] also renews automatically; the deadline is 31 December.
What to do
- Tidy up access.Copilot can find everything the employee has access to. Check shared folders and SharePoint.
- Turn off flex routing if data must stay in the EU.An administrator can turn it off.
- Label sensitive documents.Use sensitivity labels so that Copilot respects them.
- Register the use.Especially if Copilot is used in HR or on customer data.
- Pseudonymise when the AI needs to work on data from other systems.With GoalCube, Copilot only gets codes.
What the law says
- Articles 25 and 32 GDPR
- Data protection by design and appropriate security – including access control.
- Articles 44–46 GDPR
- Processing outside the EU needs a legal basis.
Questions and answers
Does Microsoft train on our data?
No. According to Microsoft, prompts, responses and organisational data in Microsoft 365 Copilot are not used to train foundation models.
What is flex routing?
It means new EU customers may have Copilot requests processed outside the EU when demand is high. An administrator can turn it off.
Can Copilot be used with GoalCube?
Yes, via agents in Copilot Studio. Licence requirements have not yet been confirmed, and Copilot support is still being tested.
Sources
- Microsoft: Data, privacy and security for Microsoft 365 Copilot
- Microsoft: Copilot flex routing
- Microsoft: EU Data Boundary
Written by The GoalCube editorial team. Last updated 11 October 2026. GoalCube helps you follow the EU AI Act and GDPR. It is not legal advice.
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