A friendly guide to help you audit Microsoft Copilot, even if you’re new to the whole AI thing.

It’s a familiar scene for many of us in IT. You’re sipping your morning coffee, scrolling through emails, when a new task from your boss lands in your lap: “I need you to audit our new AI tool.” If your first thought is, “I’m not an AI expert… where do I even begin?”—you are definitely not alone. It’s a new frontier for many, but the good news is you don’t need to be an AI guru to get started. This guide will walk you through the practical steps to audit Microsoft Copilot, breaking it down into manageable pieces, even if you’re just starting out.

Let’s be honest, auditing something as complex as AI can feel a bit like being asked to inspect a spaceship’s engine without a manual. But at its core, auditing Copilot is about applying the fundamental principles of IT auditing—governance, access control, and data security—to a new and exciting technology.

First, What Are We Actually Auditing?

Before you can audit something, you need to know what it is. Microsoft Copilot for Microsoft 365 isn’t just a standalone chatbot. It’s deeply woven into the fabric of the apps your company uses every day—Word, Excel, Outlook, Teams, and more. It has access to your organization’s data, including emails, documents, chats, and calendars. This is its superpower, but it’s also where the risks lie.

Many companies, especially when they first adopt Copilot, might be on licenses like Microsoft 365 E1 and using the standard, free version of Microsoft Purview. While more advanced licenses offer more sophisticated tools, you can still perform a meaningful audit with the basics. Your goal is to establish a baseline and identify potential gaps.

Your Starting Point: A Practical Copilot Audit Checklist

Think of this as your initial flight check. These are the core areas you need to investigate to understand how Copilot is being used and what controls are (or aren’t) in place.

How to Audit Microsoft Copilot for Data Governance

This is probably the most critical piece of the puzzle. Since Copilot uses your company’s data to generate responses, your first questions should be about data handling.

• What data can it see? Copilot respects existing user permissions. So, if a user can’t access a specific SharePoint site, Copilot can’t use data from that site for them. Your audit should verify that these permissions are correctly configured and follow the principle of least privilege.
• Is sensitive data labeled? This is where Microsoft Purview Information Protection comes in. Even with the standard features, you can apply sensitivity labels to documents (e.g., “Confidential,” “Internal Use Only”). Audit whether these labels are being used consistently. Copilot is designed to respect these labels, helping prevent the accidental exposure of sensitive information. For a deep dive into how it all works, check out Microsoft’s official documentation on Data, Privacy, and Security for Copilot.
• Are we meeting compliance standards? Think about GDPR, CCPA, or industry-specific regulations. Your audit should assess whether Copilot’s use aligns with these requirements.

Reviewing User Access and Permissions

Who gets the keys to the kingdom? Just because the company has Copilot doesn’t mean everyone should have access on day one.

• Who has a license? Is access rolled out to everyone or a specific pilot group? An audit should verify the user list against the intended deployment plan.
• How is access managed? Is it tied to specific roles in Microsoft Entra ID (formerly Azure Active Directory)? Strong access control is a fundamental IT audit checkpoint, and it’s just as important here.

Digging Deeper: How to Audit Microsoft Copilot Activity

Once you’ve reviewed the setup, it’s time to look at what people are actually doing with the tool. This is where you get into the nitty-gritty of user behavior.

Your best friend here is the Microsoft Purview audit log. It captures Copilot events, giving you a window into user interactions.

• What to look for in the logs: The audit log will show you “Copilot interaction events.” This includes the prompts users are typing and the context of where they’re using it (e.g., in Teams or Outlook). You’re not trying to spy on people, but you are looking for patterns and potential policy violations. Are people pasting large chunks of confidential code or customer data into prompts? Are there signs of users trying to probe for information they shouldn’t have access to? Microsoft provides excellent guidance on searching the audit log for Copilot events.
• Is there an AI Acceptable Use Policy (AUP)? Your company absolutely needs a policy that clearly outlines the dos and don’ts of using generative AI. If one doesn’t exist, that’s a major audit finding. If it does, your audit should test whether user activity aligns with it. A good AUP might include rules like:
  • Do not enter sensitive personal or customer information into prompts.
  • Always verify the accuracy of AI-generated content before using it in official documents.
  • Do not use AI to create content that is unethical or against company policy.

It’s a Journey, Not a Destination

Auditing AI for the first time can feel overwhelming, but it doesn’t have to be. By focusing on the core principles of IT auditing and applying them to this new technology, you can provide real value and help your organization navigate the world of AI responsibly.

Start with the basics: check your data governance, review access controls, and dip your toes into the audit logs. Your initial findings might simply highlight the need for better tools or a clearer AI policy. And that’s a perfect outcome for a first audit. You’re not expected to have all the answers, but asking the right questions is the most important first step. For a broader perspective on the importance of this, industry leaders like Gartner emphasize the need for robust AI governance frameworks.

So, take a deep breath. You’ve got this. This new task isn’t just a challenge; it’s a chance to be at the forefront of a huge technological shift.