The reliable way to keep company data out of AI tools is to use several controls together: classify information, approve a specific service and configuration, restrict the data that connected assistants can reach, detect or block risky submissions, and govern the records that remain. Do not treat an “enterprise” label or a no-training promise as blanket approval.
This guide gives employees and administrators a practical process for deciding what may be entered, which tools and workflows can be approved, and what to do if restricted information is submitted accidentally.
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Start with a layered control model
No single setting prevents every disclosure. A useful control model has five layers:
The Tool Desk
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- Service approval: approve the exact product, plan, feature, integration, region and contract—not “AI” as a category.
- Least privilege: reduce the information an assistant can retrieve from repositories, email and other connected systems.
- Submission controls: use data-loss prevention (DLP), endpoint, browser or application controls to warn about or block sensitive prompts and uploads where your environment supports it.
- Lifecycle governance: decide what interaction records are retained, who can audit them, how deletion works and how incidents are handled.
These layers address different failure modes. A policy can be ignored; a technical block can miss an unmanaged website; and a well-configured assistant can still expose data that was already over-permissioned in a source system. Using the layers together limits both accidental entry and excessive retrieval.
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Define what “sensitive” means before choosing a tool
Employees need a clear default, not a vague instruction to “be careful.” Publish data classes that map to decisions they can make while working. The following categories are practical starting points; adapt them to your contracts, jurisdictions and regulatory obligations.
| Data category | Typical examples | Default AI handling |
|---|---|---|
| Credentials and secrets | Passwords, API keys, private keys, recovery codes and access tokens | Never enter into an AI service. Revoke or rotate immediately if exposed. |
| Personal data | Customer or employee identifiers, contact details, financial information and support records | Keep out unless a specifically approved workflow, contract and legal basis cover the exact data. |
| Customer-confidential material | Customer files, statements of work, private correspondence and non-public support details | Use only a named, approved service with the required contractual and access controls. |
| Source code and technical assets | Private repositories, proprietary algorithms, infrastructure configuration and unreleased fixes | Do not paste into consumer tools. Use an approved development workflow with repository permissions reviewed. |
| Unreleased financial or strategic information | Forecasts, acquisition discussions, pricing plans, board material and launch plans | Prohibited by default until security, legal and business owners approve a narrowly defined use. |
| Regulated or legally protected records | Health, payment, government, export-controlled or litigation-related records | Require a documented assessment of the applicable law, contract, region, retention and access settings. |
State any exceptions narrowly. For example, an approved workflow might permit a redacted support ticket for summarization while still prohibiting the original ticket, attachments and account identifiers. “The tool is approved” is not an exception by itself; approval must cover the data class and the use case.
Separate model training from storage and access
“Not used for training” answers only one question. It does not mean that prompts are never stored, that personnel can never review them for abuse monitoring, that connected applications cannot retrieve them, or that the workflow is automatically compliant with a law or contract.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsOpenAI’s API data-controls documentation states: “As of March 1, 2023, data sent to the OpenAI API is not used to train or improve OpenAI models (unless you explicitly opt in to share data with us).” That statement is scoped to the API and its stated terms. The same documentation describes abuse-monitoring logs that may contain prompts and responses and are retained for up to 30 days by default, subject to exceptions and approved controls. The 30-day figure is a stated default maximum for those logs, not a breach rate or a prediction that an exposure will occur.
OpenAI’s business privacy material likewise describes listed business and API services as not using customer inputs or outputs for training by default. Administrators still need to check the service, plan, feature, retention settings, application state, subprocessors and contract that apply to their deployment. A chat product, an API endpoint and an agent connected to company systems can have different rules.
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For Microsoft Copilot, Microsoft describes enterprise protections including encryption, tenant isolation, identity and permission inheritance, sensitivity labels, retention and audit. Microsoft also says that the precise controls vary by subscription plan. Treat those statements as product commitments to verify against your organization’s actual entitlement and configuration, not as proof that every Copilot workflow handles every data class safely.
Write a policy employees can follow
A short policy is more effective when it answers the decisions an employee faces in the moment. Include these elements:
- Approved tools: list the exact service, plan and sanctioned access method. Distinguish a managed application from a public website, browser extension or personal account.
- Allowed uses: give examples such as drafting from public text, transforming an already approved internal document, or generating test data that contains no real personal information.
- Prohibited inputs: name credentials, personal data, customer-confidential material, private source code, unreleased financial information and regulated records explicitly.
- Redaction rules: explain how to remove names, account numbers, secrets, unique identifiers, file metadata and distinctive combinations that could re-identify a person or customer.
- Human review: require an employee to check generated output for confidential content, fabricated details and inappropriate disclosure before sharing it.
- Reporting: provide one route for accidental submissions and questions about a new use case. Employees should not try to hide a mistake.
- Exceptions: require documented approval from security, privacy, legal or the data owner as appropriate, with an expiration or review date.
Training should use realistic examples. Show the difference between asking an assistant to rewrite a public press release and pasting the unreleased launch plan that the release will eventually describe. Explain that replacing a name with “Customer A” may not be enough if the surrounding facts identify the customer.
Inventory every way employees can use AI
Approval is impossible if the organization does not know which services are in use. Build an inventory from procurement records, identity logs, browser and endpoint telemetry, API gateways, expense reports and employee surveys. Record both sanctioned and unsanctioned use.
For each entry, capture:
- the exact product, edition, plan and account type;
- the web, desktop, mobile, API, browser-extension or agent interface;
- the tenant, region and data residency terms that apply;
- connected repositories, mailboxes, storage locations, plug-ins and subprocessors;
- whether prompts, outputs, uploaded files or interaction history are retained;
- whether data is used for model training or service improvement, and whether an opt-in exists;
- abuse-monitoring and application-state behavior;
- identity, role, audit, DLP and deletion capabilities;
- the business owner, security owner and contract or terms governing use.
Do not infer protection from a familiar brand name. Two products in one vendor’s family, or two plans for the same product, may have different retention, training, audit and administrative controls.
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Approve a precise service and workflow
Use a repeatable review rather than an informal “the vendor says it is secure” decision. The following sequence turns a proposed use into a documented approval.
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- Describe the use case. Identify the users, the data classes, the prompt and file types, the expected output, the connected sources and whether the assistant acts on the user’s behalf.
- Identify the exact service. Record product name, plan, feature, region, interface and tenant. Separate a business subscription from a consumer account and a hosted chat from an API integration.
- Check training terms. Establish whether customer inputs and outputs are used to train or improve models, whether sharing is optional, and which services the statement covers.
- Check retention and deletion. Determine what is stored, for how long, where deletion is configured, what backups or legal holds affect removal, and who can retrieve records.
- Check abuse monitoring and application state. Find out whether prompts and responses can appear in abuse-monitoring logs, whether a conversation or agent state persists, and which exceptions apply.
- Check access and connected services. List repositories, mailboxes, drives, plug-ins and agents. Confirm the assistant’s identity model, service accounts, scopes and administrator controls.
- Check audit and investigation support. Verify whether administrators can inspect interactions, investigate sharing, run eDiscovery where required and export records for an incident.
- Check contractual scope. Confirm the governing enterprise terms, privacy commitments, subprocessors, regional restrictions and any data-processing agreement. Do not assume a marketing page changes the contract.
- Test the real configuration. Use representative accounts and deliberately over-permissioned and restricted files. Confirm what a user can retrieve, what an administrator can audit and what DLP rules actually see.
- Document the decision. Name the approved data classes, prohibited workflows, owners, controls, review date and conditions that would trigger reapproval.
OpenAI’s API documentation and business privacy material illustrate why this detail matters: a no-training commitment and a separate abuse-monitoring retention rule can both apply to the same overall service family. Microsoft’s documentation similarly describes inherited permissions, labels, retention and audit while warning that control availability varies by subscription.
Reduce the data an assistant can retrieve
Retrieval-connected assistants do not magically bypass permissions. Microsoft says Copilot surfaces organizational data for which the individual user has at least view permission. That makes the source system’s access model a direct part of AI security: excessive permissions can increase what the assistant is able to find for that user.
Clean up source permissions first
- Remove former employees, stale groups and broad “everyone” access from SharePoint, OneDrive, email, repositories and other connected stores.
- Separate confidential projects into repositories or sites with clear ownership instead of relying on users to remember which files are sensitive.
- Review service accounts and application permissions; an agent with a broad service identity can expose more than a normal employee account.
- Use sensitivity labels and retention policies where supported, and verify that labels follow copied or exported content as intended.
Test with representative identities
Create test accounts that represent ordinary staff, managers, contractors and administrators. Ask the assistant for information from restricted and permitted locations. Check whether search results, citations, summaries and generated files all obey the same permissions. Repeat after role changes and repository migrations; inherited access can change without an AI setting changing.
Limit connected features
Enable only the repositories, plug-ins and agents required for the approved workflow. A summarization task may not need mailbox access, and a coding assistant may not need production credentials or deployment controls. Review scopes whenever a feature, connector or model changes.
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Block or detect risky submissions
Policy and training reduce mistakes, but employees can still paste a secret into a public chat window or upload a customer file to an unapproved site. Enterprise DLP and endpoint controls can help detect, warn about or block those actions where the organization’s products and configuration support them.
Choose the enforcement point
| Control point | What to verify | Typical action |
|---|---|---|
| Approved enterprise application | Whether prompts, pasted text and file uploads are inspected by the organization’s DLP policy | Allow, warn, redact or block according to data class and use case. |
| Consumer website or personal account | Whether browser, proxy or endpoint controls can identify the destination and inspect the submission | Warn or block uploads and paste events that match sensitive-data rules. |
| API gateway | Whether requests are routed through a managed endpoint and logged under the approved contract | Enforce authentication, payload rules, rate limits and approved destinations. |
| Connected agent | Whether identity, repository permissions, tool calls and generated exports are auditable | Restrict scopes, require approval for consequential actions and record activity. |
Microsoft guidance for government and other high-security environments identifies DLP and endpoint protection as controls for preventing sensitive content from being copied into consumer AI applications. Coverage depends on the destinations, products, configuration and employee workflow. Test whether a control sees pasted text, screenshots, file uploads, mobile traffic and alternate browsers before promising a universal block.
Design useful warnings
A warning should name the matched data type and offer a safe alternative, such as removing identifiers or switching to an approved tenant. Blocking every uncertain match can drive employees to work around the control; allowing every ambiguous match defeats it. Record overrides, route them to a data owner when appropriate and review repeated overrides for policy changes or additional training.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Govern interaction records and deletion
Decide in advance which prompts, outputs, uploaded files and audit events are business records, which are temporary processing data and which must be deleted. Microsoft describes Purview capabilities for retaining, deleting, auditing and searching AI interaction records. Use those capabilities only after mapping them to the organization’s legal holds, privacy obligations, investigation needs and the vendor’s actual storage behavior.
- Retention: specify record types, retention periods, owners and the event that starts the period.
- Deletion: document user deletion, administrator deletion, automated expiration, backups and legal holds.
- Access: restrict interaction history and audit exports to personnel with a defined business need.
- Audit: monitor high-risk prompts, file uploads, policy overrides, connector changes and agent actions.
- eDiscovery: confirm that required records can be searched, preserved and exported without granting broad access to unrelated conversations.
Do not promise that a user’s “delete” button immediately removes every copy. The effective result depends on the service, plan, retention policy, backups and legal requirements documented in the approval.
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Train for minimization and safe redaction
Training should teach employees to send the least information needed to obtain a useful result. A practical pre-submission check is:
- Remove credentials, keys, tokens and secrets entirely.
- Replace names, account numbers, email addresses and exact dates with consistent placeholders when identity is not needed.
- Delete attachments, metadata, comments and hidden spreadsheet columns that the task does not require.
- Reduce a document to the relevant excerpt; do not upload an entire customer file to answer one question.
- Use synthetic or public examples for experimentation and testing.
- Confirm that the destination, account and feature are approved for the remaining data.
- Review the output before forwarding it; generated text can repeat confidential input or combine details into a new disclosure.
Redaction is not automatically safe. A rare combination of job title, location, date and event can identify a person even after a name is removed. If the task needs exact values, use a sanctioned internal workflow rather than attempting superficial anonymization.
Respond when restricted data is submitted
Accidental disclosure should trigger the organization’s incident process, not concealment. The response should establish facts quickly and preserve evidence.
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- Stop further sharing. Close the conversation or disable the integration if doing so will not destroy evidence. Do not paste additional material while investigating.
- Record what was sent. Capture the service, account, plan or endpoint, time, prompt, attachments, recipients, connected tools and whether the content included credentials or regulated data.
- Notify the right owners. Contact security and the relevant privacy, legal, compliance, data and business owners through the established channel.
- Contain credentials. Rotate or revoke exposed passwords, tokens, keys and certificates. Check for downstream use.
- Assess obligations. Determine whether customer notice, regulator reporting, contractual notice, legal hold or cross-border review may apply. The correct decision depends on the data, jurisdiction, contract and actual exposure.
- Request deletion where appropriate. Use the service’s documented deletion and retention controls, while preserving records needed for the investigation or a legal hold.
- Document and improve. Record the timeline, controls that worked or failed, decisions made and policy or technical changes required.
There is no universal response deadline or one-size-fits-all remedy. Follow the organization’s incident plan and obtain legal and privacy advice for the specific facts.
Compare control options on the questions that matter
When evaluating enterprise DLP, AI data-governance software or built-in administrative controls, compare capabilities rather than slogans.
| Evaluation axis | Questions for the administrator |
|---|---|
| Destination coverage | Does the control cover approved enterprise apps, consumer websites, APIs, browser extensions and connected agents? |
| Submission control | Can it inspect prompts and uploads, identify sensitive content, warn, redact or block, and record an override? |
| Identity and data permissions | Does it respect existing user permissions and sensitivity labels? Can administrators audit exceptions and test access by role? |
| Lifecycle controls | Can the organization retain, delete, audit, search and preserve AI interaction records for investigations or eDiscovery? |
| Service scope | Are training use, abuse monitoring, application state, retention, region, subprocessors and contract terms documented for the exact plan and feature? |
No independent product-performance comparison or universal effectiveness statistic establishes that one control works in every environment. Verify each claimed capability against current documentation and test the organization’s own configuration, including bypass paths.
A deployment checklist for administrators
Before enabling a new AI workflow, confirm each item below:
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- The business owner has described the use case and named the data classes involved.
- The exact product, plan, feature, interface, region and tenant are recorded.
- Training, abuse monitoring, application state, retention, deletion and contract terms have been reviewed separately.
- Connected repositories, mailboxes, plug-ins and agents are listed and limited to the minimum required.
- Source permissions, stale groups, service accounts and sensitivity labels have been reviewed.
- Representative user tests show that retrieval and exports follow intended permissions.
- DLP, endpoint, browser or gateway rules have been tested on prompts, paste events, screenshots and uploads relevant to the workflow.
- Interaction retention, audit access, deletion, legal holds and eDiscovery responsibilities are documented.
- Employees have examples of allowed, prohibited and safely redacted inputs.
- An incident route, credential-rotation procedure and review date are in place.
What employees should do before pressing Send
Ask four questions: What is the most sensitive element here? Does this exact account and feature permit it? Can I remove or summarize it first? Who do I contact if I made a mistake? If the answer to the second question is unclear, stop and use the approved escalation path. A useful AI result is never a reason to bypass data classification, least privilege, contractual review or incident reporting.
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