---
title: "Microsoft Copilot Chat (Entra work account, no Microsoft 365 Copilot licence) (Microsoft)"
url: "https://ailawframework.com/software/copilot-chat-work"
type: "software_profile"
site: "AI Law Framework"
id: "copilot-chat-work"
vendor: "Microsoft"
category: "General-purpose"
segment: "General-purpose assistants"
confidence: "high"
last_reviewed: "2026-09-21"
---

# Microsoft Copilot Chat (Entra work account, no Microsoft 365 Copilot licence) (Microsoft)

> Organisational web-grounded chat with enterprise data protection on prompts and responses. Not grounded in Graph files unless the user uploads them, uses Outlook, or launches a pay-as-you-go agent.

Canonical page: https://ailawframework.com/software/copilot-chat-work  
Last reviewed: 2026-09-21

Site index for agents: https://ailawframework.com/llms.txt

Plan covered: Copilot Chat with an Entra work account and no Microsoft 365 Copilot add-on. Distinct from consumer Copilot and from licensed Graph-grounded Copilot. Review agents and web search separately.

## Capabilities

- Document summarisation
- Knowledge search

## Key facts

| Fact | Value |
| --- | --- |
| Deployment | SaaS |
| Hosting regions | Australia, United States, European Union / EEA, United Kingdom, Multiple specified locations |
| Australian region | On request |
| Model providers | Microsoft, Anthropic (optional), OpenAI (optional) |
| Assurance | ISO 27001, ISO 27018, ISO/IEC 42001, HIPAA, GDPR |
| Training on customer content | No |
| Retention | Prompts and responses are logged in Exchange Online for audit and eDiscovery. Retention follows the tenant's Microsoft 365 / Purview policies. Web-search queries to Bing are a separate controller flow and are not stored as Graph content. |
| Integrations | Microsoft Entra ID, Exchange Online, Outlook, Bing web search, optional agents |
| Legal content coverage | Web-grounded by default via Bing. Not a licensed Australian primary-law service. Graph files are in scope only if uploaded, used in Outlook, or reached via an agent. |
| Pricing | Copilot Chat is included for eligible work accounts. Microsoft 365 Copilot (USD 30/user/month) is a separate add-on that adds Graph grounding. Pay-as-you-go agents and Copilot Studio capacity are extra meters. |
| Australian presence | Yes. Same Microsoft 365 AU commercial presence as licensed Copilot. Query processing for non-EU tenants may leave Australia. Bing web queries are outside the EU Data Boundary and the DPA/BAA. |
| Website | https://learn.microsoft.com/en-us/copilot/privacy-and-protections |

## What the research found

| Topic | Status | Finding | Open question | Sources |
| --- | --- | --- | --- | --- |
| Chat-only Entra versus licensed Microsoft 365 Copilot | Public claim only | This profile is Copilot Chat with an Entra account and no Microsoft 365 Copilot add-on. EDP (DPA and Product Terms) covers prompts and responses. Unlike licensed Copilot, Chat is not Graph-grounded in the chat experience unless the user pastes/uploads a file, uses Chat in Outlook, or uses a pay-as-you-go agent. Consumer Copilot and licensed Copilot need separate profiles. | Confirm users are Entra-signed-in Chat-only, and list which agents or Outlook Chat access are enabled. | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Microsoft 365 service boundary; Bing is outside it | Public claim only | Prompts and responses are processed within the Microsoft 365 service boundary with EDP. Web grounding sends short Bing queries without user or tenant identifiers. Bing operates under the Microsoft Services Agreement as a separate controller. Anthropic models, if enabled, are excluded from the EU Data Boundary and in-country processing. | Is web search on, is ADR/Multi-Geo in place, and are Anthropic or OpenAI model routes enabled? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection); [Anthropic models in Microsoft Online Services](https://learn.microsoft.com/en-us/microsoft-365/copilot/connect-to-ai-subprocessor) |
| Web-grounded chat; optional file/Outlook/agent grounding | Public claim only | Users prompt from web, Copilot app, Teams or Outlook. Grounding is web-only unless content is added in the prompt, Chat is used in Outlook (mail, calendar, chats, limited OneDrive/SharePoint), or a pay-as-you-go agent with organisational content is used. Multiple models may generate a response. Interactions are logged to Exchange before the reply is shown. | Will Outlook Chat and file upload be allowed, and which agents can see tenant files? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| EDP in M365 geo; Bing and Anthropic exceptions | Public claim only | EDP commitments (GDPR, ISO 27018, DPA, EU Data Boundary footnote) apply to prompts and responses. EU Data Boundary does not apply to web search queries. Anthropic models are currently excluded from the EU Data Boundary. HIPAA, where configured, does not apply to web search queries. | Map APP 8 for Exchange-stored chats, Bing queries and any Anthropic/OpenAI route for our AU tenant. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection); [Anthropic models in Microsoft Online Services](https://learn.microsoft.com/en-us/microsoft-365/copilot/connect-to-ai-subprocessor) |
| Included with eligible Microsoft 365; agents extra | Public claim only | No extra Copilot seat for Chat on eligible Entra Microsoft 365. The USD 30/user/month Microsoft 365 Copilot add-on is a different SKU. Agents require Azure or Copilot Studio capacity. Specific controls vary by underlying subscription plan. | Confirm our Microsoft 365 SKU includes Copilot Chat EDP and whether any agent meter is on. | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Entra, Exchange, Outlook, optional agents | Public claim only | Entra identity and the user's existing permissions apply. Copilot Chat respects identity, permissions, sensitivity labels, retention and audit, but the set of controls varies by plan. Unlike licensed Copilot it does not automatically read Graph. Agents have their own privacy statements. | Show that a disabled Entra user loses Chat immediately, and list every enabled agent destination. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection); [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| Microsoft 365 support SKU | Not confirmed | Support follows the firm's Microsoft customer agreement (Unified/Premier or standard). Not inspected here. | What severity times and Australian-hours coverage apply to Copilot Chat incidents? | [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access) |
| Web-grounded answers; RAI checks; no independent study | Public claim only | Microsoft describes Responsible AI safety checks and web grounding via Bing for currency. No independent Australian-law hallucination benchmark for Copilot Chat was found. | Test Chat on a known public-law question and on a pasted clause; do not treat citations as verified authorities. | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| Web research and pasted-text help; not Graph matter search | Not confirmed | Fit for web-grounded Q&A and user-supplied excerpts. Unfit as a matter-file assistant unless Outlook Chat or an agent is deliberately enabled. Court work and Australian authorities remain lawyer-led. Licensed Copilot is the Graph-grounded product. | Which tasks stay on Chat-only versus requiring the Microsoft 365 Copilot add-on? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| Internal chat; uploads and Outlook expand the corpus | Not confirmed | Default Chat does not search the firm's files. Uploading a client document, using Outlook Chat, or enabling an agent brings that content into prompts stored in Exchange and, if web search is on, into Bing query generation. No AU client-disclosure template was found. | How will we disclose Copilot Chat use, file upload and Outlook grounding to clients? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| Microsoft models; optional Anthropic/OpenAI | Public claim only | Copilot Chat may use multiple models. Admins can enable Anthropic and OpenAI as AI subprocessors; additional terms apply and Anthropic is excluded from the EU Data Boundary. Restricting to Microsoft-hosted models is an admin choice. | Which model providers are enabled for Copilot Chat in our tenant? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Anthropic models in Microsoft Online Services](https://learn.microsoft.com/en-us/microsoft-365/copilot/connect-to-ai-subprocessor) |
| Online Services plus optional AI subprocessors; Bing separate | Public claim only | Microsoft Online Services subprocessors apply under the DPA for prompts/responses. Optional Anthropic and OpenAI AI subprocessors. Bing web search is a separate controller under the Services Agreement and Privacy Statement, with extra Product Terms commitments for generated search queries. | Provide the Copilot Chat subprocessor extract and confirm Bing, Anthropic and OpenAI on or off. | [Anthropic models in Microsoft Online Services](https://learn.microsoft.com/en-us/microsoft-365/copilot/connect-to-ai-subprocessor); [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection); [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access) |
| No foundation-model training for prompts, responses or Graph | Public claim only | EDP and Copilot Chat privacy: prompts, responses and Graph data are not used to train foundation models. Bing web queries are also stated not to train foundation LLMs and not to be shared with advertisers. | Confirm the no-training commitment in our Product Terms for Chat, including any Anthropic/OpenAI route. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection); [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| Optional Microsoft 365-style feedback | Not confirmed | Chat-specific feedback controls were not extracted from the pages reviewed. Organisational Copilot documentation allows admins to manage optional feedback, which Microsoft says is not used to train foundation models. | Disable optional Copilot feedback for Entra users if we do not want interaction content in the improvement channel. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Logged in Exchange; Purview policies apply | Public claim only | Before the response is returned, prompt and response are stored in Exchange for auditing/eDiscovery. Retention, audit and labels apply according to the underlying Microsoft 365 plan. Default Copilot interaction retention should be confirmed in Purview. | What is the Copilot interaction retention label in our tenant, and can we set 30 days? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Follows Microsoft 365 / DPA offboarding | Not confirmed | Deletion of Exchange-stored Copilot interactions follows Microsoft 365 content deletion and the DPA. This review did not extract a Chat-specific certified-deletion day count. Bing query copies are outside that store. | Confirm Chat prompts/responses in Exchange and any agent logs are deleted with our Microsoft 365 data on instruction. | [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access); [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| Microsoft 365 support practices; Lockbox if purchased | Public claim only | EDP cites physical security, encryption and tenant isolation. Customer Lockbox is an eligible Microsoft 365 add-on — confirm whether it covers Copilot Chat support access. | Is Customer Lockbox in our SKU for Copilot Chat-related support? | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Entra identity and plan-dependent admin controls | Public claim only | Copilot respects the identity model, permissions, sensitivity labels, retention and audit; the specific controls vary by subscription plan. MFA and Conditional Access are Entra settings, not Copilot-specific. | Require MFA and compliant devices, and demonstrate a disabled user loses Chat the same day. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| At rest and in transit per Microsoft 365 | Public claim only | EDP: encryption at rest and in transit for Copilot data under the same terms as Exchange and SharePoint. Customer Key coverage of Copilot interaction stores should be confirmed. | Does Customer Key cover Copilot Chat logs in Exchange? | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| GDPR, ISO 27018, DPA; HIPAA not for Bing | Public claim only | EDP lists GDPR, EU Data Boundary (with Bing/Anthropic footnotes), ISO/IEC 27018 and the DPA. HIPAA for properly configured implementations does not apply to web search queries. SOC reports via the compliance portal were not downloaded. | Provide SOC 2 / ISO 27001 / ISO 42001 scope covering Copilot Chat, excluding Bing. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Microsoft Customer Agreement / EA plus DPA; Bing MSA | Public claim only | Prompts and responses: Microsoft Product Terms and DPA (EDP). Web queries: Microsoft Services Agreement and Privacy Statement as independent controller, plus Product Terms commitments for Copilot-generated Bing queries. Liability cap and forum follow the firm's Microsoft agreement. Customer Copyright Commitment is cited for Copilot. | Confirm Copilot Chat is an Online Service on our DPA and that Bing remains carved out. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection); [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access) |
| M365 geo plus Bing US and optional Anthropic | Public claim only | Chat processing is inside the Microsoft 365 boundary. Bing search storage/processing is United States per related Copilot Studio tables and is outside EU Data Boundary. Anthropic, if enabled, is excluded from EU Data Boundary and in-country processing. Non-EU tenants may have Copilot queries processed in US/EU/other regions. | Map every country for Chat inference, Exchange storage, Bing and Anthropic/OpenAI for our AU tenant. | [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection); [Anthropic models in Microsoft Online Services](https://learn.microsoft.com/en-us/microsoft-365/copilot/connect-to-ai-subprocessor) |
| Online Services incident process | Not confirmed | Incidents follow the Microsoft DPA for Online Services. This review did not extract a Copilot Chat-specific hour count. Bing as separate controller has a different notification path. | Within how many hours will we be notified of a Chat or Exchange Copilot-log incident, and who notifies for Bing? | [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access) |
| Rename in progress; agents and model routes | Public claim only | Microsoft is renaming Microsoft 365 Copilot Chat to Microsoft Copilot Chat and says organisational privacy commitments are unchanged. Agents and Anthropic/OpenAI routes can be added by admin without a new seat licence. | Will you notify us before enabling Anthropic, OpenAI, web search or any agent that reads tenant files? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Anthropic models in Microsoft Online Services](https://learn.microsoft.com/en-us/microsoft-365/copilot/connect-to-ai-subprocessor) |
| Exchange-held logs; Bing separate | Not confirmed | Copilot interactions in Exchange follow mailbox export/offboarding. Bing query data is not in that mailbox. No Chat-specific certified-deletion window was extracted. | How do we export Copilot Chat eDiscovery logs on tenant exit, and when are Bing copies gone? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access) |
| File upload, Outlook, pay-as-you-go agents | Not confirmed | Four documented ways to bring organisational content into Chat: paste/upload/ContextIQ, Outlook Chat, and pay-as-you-go agents. Each agent's own terms apply. Web search is a connector to Bing. | Which upload, Outlook and agent paths are allowed, and how do we disable agents tenant-wide? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Bing grounding; separate controller | Public claim only | Web grounding is part of the Chat architecture when enabled. Queries are a few words from the prompt, no user/tenant IDs, not for ads or foundation-model training. Covered by the Services Agreement/Privacy Statement, not the DPA or BAA. Admins can manage public web access. | Is web search on for Copilot Chat, and can we turn it off tenant-wide? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections); [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access); [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) |
| Chat replies; agents and file generation extra | Not confirmed | Default Chat returns text. Documentation also covers generating files in Word, Excel and PowerPoint agents. Pay-as-you-go agents can take actions in other systems under their own terms. No firm-wide kill-switch is described beyond admin policy. | Which agents can write files or call APIs, and how do we freeze them immediately? | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |
| RAI checks; lawyer still reviews | Public claim only | Copilot runs Responsible AI checks before returning a response. There is no contractual requirement that a qualified lawyer approve Chat output. Web citations are not a substitute for checking Australian authorities. | Require human review before Chat output is used in advice or client documents. | [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) |

## Notes

Chat-only is not Graph-grounded unless Outlook, upload or an agent is used. Prompts/responses sit in Exchange (so no-training is not no-storage). Bing web queries are a separate controller and outside DPA/BAA/EU Data Boundary. Do not treat this as the USD 30 Microsoft 365 Copilot add-on.

## Sources

- [Microsoft Copilot Chat privacy and protections](https://learn.microsoft.com/en-us/copilot/privacy-and-protections) (checked 2026-09-21)
- [Enterprise data protection in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/enterprise-data-protection) (checked 2026-09-21)
- [Web search in Microsoft Copilot and Copilot Chat](https://learn.microsoft.com/en-us/microsoft-365/copilot/manage-public-web-access) (checked 2026-09-21)
- [Anthropic models in Microsoft Online Services](https://learn.microsoft.com/en-us/microsoft-365/copilot/connect-to-ai-subprocessor) (checked 2026-09-21)

A product profile is research to support questions. It does not approve a product for any firm. Public product information supports questions; it does not approve a product for your firm. Verify the exact plan, settings and signed terms.