A Practical Guide for Montana Businesses Considering Microsoft Copilot 

AI tools like Microsoft Copilot are quickly becoming standard in the modern workplace. They promise productivity gains, faster insights, and reduced manual work, all compelling benefits for Montana businesses facing tight labor markets and growing competition. 

But AI also introduces a new reality: 

AI does not create new security risks; it exposes the ones you already have. 

For organizations without strong data governance, access controls, and compliance frameworks, AI can accelerate mistakes just as easily as it accelerates productivity. 

This guide breaks down the real security and compliance risks of AI, what Montana business leaders should understand, and how to adopt Copilot responsibly. 

Why AI Changes the Security Conversation 

Traditional IT tools require users to search for information. 

AI tools like Copilot surface information automatically. 

That shift matters. 

Copilot can: 

  • Summarize years of documents in seconds 
  • Pull insights across emails, chats, and files 
  • Expose relationships between data that were previously hard to see 

If sensitive information is overshared today, AI will find it faster tomorrow. 

Risk #1: Overshared Data Becomes Instantly Discoverable 

Copilot respects Microsoft 365 permissions, but it does not question them. 

Common risks include: 

  • “Everyone” access in SharePoint libraries 
  • Former employees retaining access 
  • Sensitive HR or financial files stored in general folders 

With Copilot enabled, users can unintentionally surface: 

  • Payroll data 
  • Contracts 
  • Legal correspondence 
  • Strategic planning documents 

What once required effort to uncover can now appear with a single prompt. 

ISM regularly performs permission audits to reduce this risk before Copilot is enabled. 

Risk #2: Lack of Data Classification and Sensitivity Labels 

If your data isn’t labeled, AI can’t tell what’s sensitive. 

Microsoft Purview provides tools to: 

  • Label confidential data 
  • Restrict sharing 
  • Apply retention and compliance policies 

But many organizations haven’t fully implemented them. 

Without classification: 

  • Copilot treats sensitive and non-sensitive data the same 
  • Users may unknowingly include protected information in AI-generated content 

Risk #3: Compliance Blind Spots (HIPAA, Financial, Legal, Government) 

Many Montana businesses operate under compliance requirements, including: 

  • Healthcare (HIPAA) 
  • Financial services 
  • Legal and professional services 
  • State and local government 

AI introduces new questions: 

  • Where is data processed? 
  • How long is it retained? 
  • Who can access AI-generated summaries? 

The good news: Microsoft Copilot is built for enterprise compliance. 

The challenge: Your configuration determines whether those protections are actually enforced. 

Risk #4: No AI Usage Policies or Governance 

Technology moves faster than policy, and AI is no exception. 

Without clear guidelines, employees may: 

  • Use Copilot to draft sensitive communications 
  • Paste confidential data into prompts 
  • Rely on AI-generated output without validation 

AI governance isn’t about limiting productivity; it’s about protecting the business. 

Smart organizations establish: 

  • Acceptable use policies 
  • Role-based AI access 
  • Human review requirements 
  • Audit and reporting practices 

ISM helps leadership teams create practical AI governance frameworks, not red tape. 

Risk #5: Assuming AI Is “Secure by Default” 

One of the most dangerous assumptions is that turning on Copilot automatically makes AI safe. 

Copilot inherits: 

  • Your permissions 
  • Your data hygiene 
  • Your security maturity 

If those are weak, AI will reflect that weakness, quickly and at scale. 

AI security is not a switch. 

It’s a strategy. 

What Montana Businesses Should Do Before Enabling Copilot 

Before deploying AI, organizations should: 

  1. Audit Microsoft 365 permissions 
  1. Clean and organize data 
  1. Apply sensitivity labels and retention policies 
  1. Review compliance requirements 
  1. Train users on secure AI usage 

This preparation protects your organization, and ensures Copilot delivers real value. 

Final Thought: Secure AI Is Smart AI 

AI adoption doesn’t have to be risky. 

Montana businesses that approach Copilot with intention, governance, and security-first thinking will gain a competitive advantage without compromising trust or compliance. 

Those that rush may spend the next year cleaning up avoidable mistakes. 

Considering Copilot? Make Sure Security Comes First. 

Information Systems of Montana provides AI Security & Copilot Readiness Assessments designed for Montana organizations. 

Schedule your assessment today and adopt AI with confidence. 

RSVP for our upcoming webinar, "The Copilot AI 2.0 Journey - From Cost Center To Profit Center" on March 10th at 11:00-11:45 (MT).