Why a Copilot DPIA Is Becoming Essential

Microsoft Copilot for Microsoft 365 is rapidly being deployed across organisations because it integrates directly into tools employees already use — Outlook, Word, Teams, SharePoint and OneDrive. By design, it generates outputs based on the information a user can access across the Microsoft 365 environment.

From a GDPR perspective, that architecture creates significant data protection implications. Under Article 35 GDPR, controllers must conduct a Data Protection Impact Assessment (DPIA) where processing is likely to result in a high risk to individuals. AI tools capable of analysing organisational emails, documents, meeting transcripts and internal knowledge repositories will often meet that threshold.

Below are five of the most useful publicly available resources to support your own Microsoft Copilot DPIA under GDPR.

1. Danish Government DPIA — Copilot for Microsoft 365

Published: December 2025
Author: Økonomistyrelsen and Statens It, with legal assistance from Kammeradvokaten (link)

A completed DPIA prepared for Copilot deployment within Danish public administration. It is one of the most structured publicly available examples of a Copilot DPIA.

Key points

• Contains a structured risk register with ten defined risks
• Assesses risks across three clearly defined use cases
• Directly addresses AI-specific risks, including hallucinations, bias and automation bias
• Considers the potential relevance of Article 22 GDPR on automated decision-making
• Concludes that prior consultation under Article 36 GDPR was not required for the defined use cases and mitigations

2. SURF / Privacy Company DPIA on Microsoft 365 Copilot for Education

Published: 11 September 2025 (updated version)
Author: Privacy Company, commissioned by SURF (link)

A comprehensive independent DPIA prepared for Dutch universities and research institutions. It provides one of the most technically detailed analyses of Copilot currently available.

Key points

• Provides granular technical analysis of Microsoft’s data architecture, telemetry and diagnostic data
• Examines data retention practices, including retention of service and diagnostic data
• Tracks which previously identified risks Microsoft has mitigated and which remain unresolved
• Identifies risks from free Copilot services outside the licensed enterprise processor framework
• Provides specific mitigation guidance, including settings to disable and licence restrictions for users handling sensitive data

3. Microsoft “Build Your Own DPIA” Template — Enterprise Edition

Published: 6 February 2025
Author: Microsoft (link)

This template is designed for private sector organisations deploying Microsoft 365 Copilot. It follows the structure of the Irish Data Protection Commission’s DPIA framework and provides a practical starting point for controllers preparing their own assessment.

Key points

• Provides a ready-made DPIA structure covering processing description, legal bases, necessity, proportionality and risk assessment
• Consolidates Microsoft’s key contractual and technical safeguards, including the EU Data Boundary, zero-standing access and breach notification obligations
• Includes a baseline risk register addressing cloud security risks such as data breaches, access control failures and audit limitations
• Helps organisations accelerate the drafting process where no internal DPIA template exists
• Must be supplemented with AI-specific risk analysis, as the template does not substantively address hallucinations, bias or automation risks

4. Microsoft “Build Your Own DPIA” Template — Public Sector Edition

Published: 6 February 2025
Author: Microsoft (link)

Released alongside the enterprise version, this template adapts the same DPIA structure for public authorities and government bodies deploying Copilot.

Key points

• Frames risks around public trust, accountability and citizen-service continuity
• Includes additional consideration of external threat actors affecting government IT environments
• Places greater emphasis on Customer Lockbox, requiring explicit customer approval before Microsoft can access certain service data
• Evaluates business continuity risks in terms of impact on citizens and public services
• Like the enterprise template, it must be expanded with AI-specific risk assessment before it can support a defensible DPIA

5. Norwegian Datatilsynet / NTNU Exit Report — “Copilot Through the Lens of Data Protection”

Published: June 2024
Author: Norwegian Data Protection Authority (Datatilsynet) and NTNU (link)

A regulatory sandbox report examining Copilot deployment within a large public university environment and one of the earliest regulatory analyses of Copilot from a GDPR perspective.

Key points

• Provides a supervisory authority perspective, rather than vendor documentation
• Highlights structural challenges with data minimisation and purpose limitation when Copilot operates across Microsoft Graph
• Identifies US surveillance law exposure as an unresolved legal risk
• Emphasises the importance of robust information governance before AI deployment
• Raises potential employee monitoring concerns related to Copilot interaction logs

How to Use These Resources for a Copilot DPIA

No single document provides a complete framework for assessing Microsoft Copilot under GDPR. The most practical approach is to combine several sources:

• Use Microsoft’s templates to establish the DPIA structure and baseline risk register
• Draw on the Danish government DPIA for risk modelling and methodology
• Use the SURF DPIA for technical insight into Microsoft’s architecture and configuration settings
• Consult the Datatilsynet report for regulatory interpretation and governance considerations

For organisations deploying Microsoft Copilot, these documents collectively form the most comprehensive public body of guidance currently available for conducting a Copilot DPIA. While they cannot replace an organisation-specific assessment, they can significantly reduce the time and uncertainty involved in producing a defensible GDPR-compliant DPIA.