CloudCapsule Blog

How to Deploy Microsoft Copilot Safely Using SharePoint Advanced Management

Written by Nick Ross | Feb 9, 2026 9:12:24 PM

 

You’re probably excited about rolling out Microsoft 365 Copilot.

But here’s the uncomfortable truth most organizations discover too late:

Copilot doesn't just use your documents. It uses all of your organization's documents.

That includes:

  • SharePoint sites no one remembers owning

  • Overshared folders from years ago

  • Legacy file share migrations

  • Content from 2017 that should’ve been archived or deleted

Let's explore a realistic and somewhat risky Copilot scenario and how you can take a better approach. 

 

A Realistic (and Risky) Copilot Scenario

 

Imagine an employee asking Copilot:

Help me prepare for my performance review.

 

Totally reasonable request.

But Copilot scans the environment and accidentally surfaces a confidential HR documents:

  • Salary benchmarks

  • Disciplinary notes

  • Draft termination letters

  • Someone else’s compensation plan

Not because of a breach.
Not because of malicious intent.

But because the file lived in a SharePoint site that was unknowingly overshared years ago.

This is not hypothetical.
This is happening today.

And it’s exactly why organizations need SharePoint Advanced Management before enabling Copilot.

 

Copilot Is Only as Safe as Your Configurations and Policies

Copilot relies on Microsoft Graph to determine what a user can access.
If a user technically has permission, directly or indirectly, Copilot can use that content in its responses.

That includes:

  • Nested group permissions

  • Legacy “Everyone except external users” access

  • Broken inheritance at the file or folder level

  • Forgotten guest access 

Most organizations have years of accumulated oversharing, especially in SMB and mid-market environments where governance historically wasn’t enforced.

Copilot doesn’t clean this up for you.
It amplifies it.

How Copilot Actually Surfaces Sensitive Data

When a user prompts Copilot, it:

  • Evaluates the user’s identity

  • Pulls everything that user has access to

  • Combines data from:

    • SharePoint

    • OneDrive

    • Teams

    • Email

    • Meetings

    • Chats

If a user has access to a site, even indirectly, Copilot can surface that content.

This is how a developer like Tim can accidentally see payroll data:

Added to a nested group years ago

Granted access via “Everyone except external users”

Permissions inherited incorrectly over time

Copilot doesn’t know intent.
It only knows permissions.

 

SharePoint Advanced Management:
Your Copilot Safety Net (well...part of it)

SharePoint Advanced Management is automatically included with Microsoft 365 Copilot.

No additional SKU required.

It gives you the governance layer Copilot assumes already exists but often doesn’t.

Let’s walk through the most critical features.

1. Oversharing & Data Access Governance Reports

SharePoint Advanced Management lets you run assessments that surface:

  • Sites with broad access

  • Broken permission inheritance

  • Org-wide permissions

  • Anonymous and “Anyone” links

  • External user access

You get a 10,000-foot view of your data exposure.

Exports include:

  • Site privacy

  • Sensitivity labels

  • External sharing status

  • Number of users and guests

  • Link types

  • Everyone Except for External User (EEEU) permissions

This allows you to quickly identify red flags like a Finance site that’s public and externally shareable.

Sample Export: 


2. Restricting Copilot from Using High-Risk Sites

Some sites should never be part of Copilot’s knowledge base:

  • HR

  • Finance

  • Legal

  • M&A

  • Executive strategy

With SharePoint Advanced Management, you can exclude specific sites from Copilot indexing.

This acts as a stopgap:

  • You still allow Copilot usage

  • But prevent it from surfacing data from high-risk locations

  • You can reverse this later once governance improves

 

3. Restricted Site Access (Reset the Permission Model)

Some sites are simply too messy to fix incrementally.

Restricted Site Access allows you to:

  • Ignore all existing permissions

  • Define a single approved group

  • Start from a clean slate

Yes, it’s a breaking change, but sometimes that’s exactly what’s needed.

This is ideal for:

  • Legacy sites

  • Sites with heavy permission sprawl

  • High-risk data repositories

 

4. Blocking Downloads from SharePoint and OneDrive

Another critical control is preventing data from leaving the browser for users leveraged unmanaged devices.

With SharePoint Advanced Management, you can:

  • Block downloads on specific sites

  • Keep content view-only in the browser

  • Prevent local copies on unmanaged devices

This is especially important when Copilot links users to sensitive documents.

Copilot may surface the link but the data doesn’t escape.

 

5. Site Lifecycle Management (Governance That Runs Itself)


Stale content is dangerous content.

Site Lifecycle Management lets you:

  • Identify inactive sites

  • Notify owners

  • Enforce read-only access

  • Archive or clean up sites automatically

You can also:

  • Detect orphaned sites with no owners

  • Require periodic site attestation

  • Run policies in simulation mode before enforcing

This reduces risk and helps control SharePoint storage costs.

 

6. Change History and Ongoing Governance

Finally, SharePoint Advanced Management provides change history:

  • Site-level setting changes

  • Org-wide sharing changes

  • Governance actions over time

This gives you forensic visibility when:

  • Sensitive data appears in Copilot

  • Access unexpectedly expands

  • Governance decisions need auditing

Copilot exposure should never be a mystery.

 

Final Thoughts:
Copilot Is Powerful, But Governance Comes First


SharePoint Advanced Management gives you the tools to:

  • Discover risk

  • Reduce oversharing

  • Govern access

  • Control Copilot indexing

  • Automate cleanup

  • Audit change

It’s not the only protection you need, but it is a foundational one.

In future posts and videos, I’ll dive deeper into:

  • Sensitivity labels

  • Data Loss Prevention

  • Trainable classifiers

  • Advanced Microsoft Purview protections

If you’re planning to deploy Copilot, start here first.

Copilot will only be as safe as the data you allow it to see.