AI can do amazing things – but for RIA or finacial advisor firms, any new tool must meet a high bar for compliance and data protection. Microsoft Copilot was built with that in mind.
In this blog, we’ll break down what makes Copilot different when it comes to security, where your data lives, who can access it, and what subscription options are available.
What Makes Copilot a Fit for RIA Firms
Microsoft 365 Copilot runs inside the Microsoft 365 environment your firm is already using. That means it’s governed by the same compliance, identity, and data protection tools already in place. This includes:
- Enterprise-grade identity protection (via Azure Active Directory)
- Compliance center tools (eDiscovery, audit, retention policies, etc.)
- Microsoft’s Data Loss Prevention (DLP) and Information Protection policies
Critically, your data is not used to train Copilot’s underlying AI models. It stays within your Microsoft 365 tenant and is only accessible by users in your organization, according to the permissions and access rules already set in place.
What about ChatGPT?
By default, data entered into the public version of ChatGPT may be used to train OpenAI’s models – unless you manually disable that setting or use ChatGPT Team or Enterprise versions. While it is possible to keep data confidential using specific settings or paid plans, those protections are not guaranteed across all versions. For RIAs, this creates more risk, especially if team members are using free or personal accounts. Microsoft Copilot for Microsoft 365 eliminates that uncertainty by keeping all data inside your existing tenant, fully managed and secured under enterprise policies.
What Subscription Is Required?
There are a few important distinctions to be aware of:
- Copilot for Microsoft 365 is the enterprise version, designed for business use. This is the version most appropriate for RIA firms. It requires:
- Microsoft 365 E3 or E5 subscription (Business Standard or Business Premium also eligible) Learn more about the best subscription for your RIA.
- Copilot license add-on (sold per user)
- Copilot in Windows or Copilot on the web (formerly Bing Chat Enterprise) may come bundled with other Microsoft plans, but these versions offer limited integration and don’t have the same compliance assurances.
For RIA firms handling regulated client data, it’s critical to use Copilot for Microsoft 365, not a consumer-grade version.
Where Does the Data Live?
When you use Copilot in Microsoft 365:
- Your data stays within your secure Microsoft 365 tenant
- AI responses are generated in real time based on your documents, emails, meetings, and calendar events
- Nothing is stored or reused to train public models
Microsoft explicitly states that:
- Your data is your data
- Your data is not used to train the foundation AI models
- Your data is protected by Microsoft’s enterprise-grade compliance and security standards
Who Has Access to the Data?
Copilot only uses what each user is permitted to access. If a document is not shared with a user, Copilot won’t surface it in results.
All access and actions are logged, auditable, and governed by Microsoft Purview’s compliance features. You can:
- Review usage logs
- Set retention and access policies
- Apply sensitivity labels and data loss prevention rules
Summary: A Secure, Compliant AI Assistant for RIAs
If you’re an RIA firm already using Microsoft 365, Copilot is the logical choice for adopting AI in a secure and compliant way. Unlike public AI tools, Copilot respects the boundaries and controls already built into your environment.
If you’re unsure which version of Copilot your team is using or whether you’re licensed for Copilot for Microsoft 365, we can help. At RIA WorkSpace, we support RIA firms in configuring, securing, and getting value from Copilot without compromising compliance.
Schedule a Discovery Call to make sure your AI tools are working for – not against – your business.