Artificial Intelligence is rapidly transforming how organizations work. With tools like Microsoft 365 Copilot, Copilot Studio, and AI-powered search embedded across Microsoft Teams, Outlook, SharePoint, and OneDrive, users can access insights faster than ever before.
However, this acceleration introduces a new and often underestimated risk: AI-driven oversharing and data leakage.
Unlike traditional search, AI can summarize, correlate, and surface information at scale. If permissions, sharing settings, or data classification are misconfigured, sensitive information can unintentionally appear in AI-generated responses.
At Olive + Goose, we are seeing this challenge firsthand as organizations adopt Copilot and AI workloads across Microsoft 365 and Azure. Preventing oversharing is no longer optional—it is a foundational requirement for secure and compliant AI adoption.
Why Preventing Oversharing Matters in AI-Driven Environments
In Microsoft 365, AI operates within existing permissions—but AI dramatically amplifies the impact of those permissions. A single overshared SharePoint site or legacy “Everyone” access group can suddenly expose sensitive content through Copilot summaries.
This creates risks across:
- Data privacy and regulatory compliance (GDPR, HIPAA, ISO 27001)
- Intellectual property protection
- Financial and HR confidentiality
- Zero Trust security alignment
Microsoft has acknowledged this shift and introduced AI-specific governance controls across Microsoft Purview, Microsoft 365 Copilot, and Entra ID to help organizations reduce exposure while still enabling innovation.
Key Microsoft Capabilities That Reduce AI Oversharing
|
Key Capabilities |
What it does |
Why it matters for AI |
|
Microsoft Purview Sensitivity Labels |
Classifies and protects data using labels such as Confidential, Highly Confidential, or Restricted. |
Sensitivity labels are honored by Microsoft 365 Copilot, ensuring AI does not surface or summarize protected content beyond its intended audience. |
|
Data Loss Prevention (DLP) for Microsoft 365 Copilot |
Extends DLP policies to Copilot prompts and responses. |
Organizations can prevent Copilot from referencing documents containing sensitive data types such as financial records, personal identifiers, or legal information. |
|
Data Security Posture Management (DSPM) for AI |
Provides visibility into data exposure risks introduced by AI usage. |
DSPM helps security teams identify overshared content that AI can access—and apply automated remediation before a data leak occurs. |
|
Restricted Content Discoverability (RCD) in SharePoint |
Limits AI discovery of content without changing user permissions. |
Ideal for high-risk sites, M&A workspaces, or compliance-sensitive repositories where AI access needs tighter control. |
|
Zero Trust Controls for Microsoft 365 Copilot |
Applies Zero Trust principles to AI access. |
Ensures that Copilot respects least-privilege access, device compliance, identity risk, and conditional access policies. |
Recommended Best Practices
- Fix Oversharing Before Expanding Copilot: Identify legacy sharing links, broad access groups, and abandoned sites before enabling AI at scale.
- Label First, Automate Second: Establish a strong sensitivity labeling strategy and use auto-labeling for consistency.
- Apply DLP Policies Specifically for AI Treat Copilot as a new data interaction surface—not just another app.
- Monitor Continuously with Purview DSPM AI governance is not a one-time setup; continuous assessment is essential.
- Educate Users on AI Data Awareness: Users should understand that AI responses reflect the data they already have access to—nothing more, nothing less.
How Olive + Goose Helps Organizations Secure AI Workflows
At Olive + Goose, we help organizations adopt AI securely, responsibly, and at scale—without slowing down innovation.
Our AI governance and Microsoft 365 services include:
- Copilot Readiness & Oversharing Risk Assessments
- Microsoft Purview architecture, labeling, and DLP design
- Secure Microsoft 365 & SharePoint migrations
- AI governance aligned with Zero Trust principles
- Post-deployment monitoring and optimization
With deep expertise across Microsoft 365, Azure, Security, Compliance, and large-scale migrations, Olive + Goose ensures your AI strategy is built on a strong, secure foundation.
References (Official Microsoft Sources)
- Address oversharing concerns in Microsoft 365 Copilot deployment blueprint
- Copilot Control System Security and Governance
- Data, Privacy, and Security for Microsoft 365 Copilot
- Preventing oversharing with Microsoft 365 Copilot data protection controls
- Purview DLP for Microsoft 365 Copilot and Chat
- Considerations for managing Copilot and Channel Agent security
(Disclaimer:AI-assisted and Olive + Goose Consultants Approved)
