Busting AI security myths

Every business conversation about productivity, efficiency, or growth eventually seems to come back to one thing.

AI.

For many SMEs, AI tools are already part of the daily routine–drafting documents, streamlining admin, and freeing up time for bigger and better things. And it’s all adding up in the best possible way. A huge 71% of businesses save time on routine tasks, 70% are more productive, and 68% do better work.

The question is, with so much going for it, why are some businesses still holding back? The reason is, for every story about better results, there’s another about risk. Can AI be trusted with sensitive data? Will people see files they shouldn’t? And what are the security risks of generative AI?

The myths around AI can shout louder than the facts. We’ve taken Microsoft 365 Copilot as an example to give you a clear-eyed look at what AI does (and doesn’t) do, so you can focus less on speculation and more on making progress.

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Debunking AI myths

So how secure is Microsoft Copilot? The hesitation around it and other generative AI like Google Gemini Advanced or ChatGPT usually comes down to a handful of key doubts that keep coming up. From data security to compliance to the ethics of using AI, here are the answers to those common questions.

Q: Can people in my team see confidential documents through Copilot?

A: No. Copilot only shows information that someone already has permission to view in Microsoft 365. If they don’t have access to a file in SharePoint or Teams, it won’t appear in their results. That also applies to external people using a shared channel like Teams.

Q: Is my data shared with our competitors?

A: No. Your data always stays securely inside your Microsoft 365 environment. Copilot doesn’t pass anything on to other businesses—including competitors.

Q: Is my data used to train Microsoft’s AI models?

A: No. Copilot works with your existing emails, meetings, and documents to give you useful answers, but that data’s never fed back into the AI model for training or anything else. It always stays private and protected.

Q: Is Copilot safe for sensitive information, like financial or customer data?

A: Yes. Copilot has multiple layers of protection, including encryption and data isolation, to keep sensitive information safe. It also has safeguards to block harmful content and prevent misuse.

Q: Can I use Copilot in a heavily regulated industry?

A: Yes. Copilot is ideal for highly regulated sectors like finance and healthcare. It uses the same secure foundation as your Microsoft 365 setup and supports GDPR, EU Data Boundary commitments, and both SOC2 and ISO/IEC certifications.

Q: Can we track how Copilot is used?

A: Yes. You can set Copilot up so it automatically records how people interact with it. You can see who used it, when, and what information they accessed. It also looks out for anything that’s non-compliant, data being used suspiciously, and even inappropriate language, so governance and compliance are simple.

Q: Is Microsoft 365 Copilot Chat secure?

A: Yes. The business version of Copilot Chat is protected by the same enterprise-grade security and compliance infrastructure as your Microsoft environment. It encrypts your data, filters out unsafe content, and follows your organisation’s existing security and compliance settings. You can also set it so people need to ask for approval before doing or accessing anything that may be sensitive.

Q: Is Copilot more secure than ChatGPT?

A: Not necessarily. Public AI tools like the free version of ChatGPT use prompts to train their models, which means your sensitive data could be exposed. However, both enterprise-grade versions offer strong security, but in different ways.

Copilot is built directly into your Microsoft 365 environment, and automatically works with your existing access controls, compliance policies, and audit tools. ChatGPT Enterprise also keeps your data private and doesn’t use your inputs for training, but works as a standalone tool.

The difference is really about integration. Copilot sits inside your wider business system, giving you built-in oversight, while ChatGPT usually needs extra work to provide the same level of control.

Q: Is it ethical to use AI?

A: Yes–as long as it’s developed and used responsibly. Providers like Microsoft have clear commitments around fairness, transparency, and accountability. It also helps to have your own environmental, social, and governance guidelines, so AI is always used in line with your values. And because AI technology is evolving fast, put regular reviews in place so you keep pace.

Read more in Is it ethical for SMEs to use AI?

Q: Do we need specialist help to roll out tools like Copilot?

A: Not always. It depends on your size, setup and how confident you feel. Many SMEs can get started without a lot of IT involvement. But if you’re unsure, working with a trusted provider gets you expert support, stronger security, and a partner to help guide your rollout.

Here are some of our best AI agents for SMEs.

Find out how AI can help your business

The myths surrounding AI can stop SMEs from enjoying all its great business benefits. In reality, enterprise-grade tools are designed with privacy, security, and compliance at their centre, making them a safe choice, even for heavily regulated sectors.

Learn more in our guide to adopting AI securely. And for more advice on rolling out AI in your business, check out V-Hub Digital Advice today.