SURF Flags Microsoft 365 Copilot as “Orange”: Major Privacy Risks for Education and Government
Microsoft 365 Copilot is being rolled out more widely, but its use appears far from risk-free. SURF, the Dutch IT cooperative for education and research, has now classified the privacy risks as “orange”, meaning a “high risk of harm to data subjects.” This raises serious red flags for institutions subject to the GDPR.
SURF warns in particular about the lack of transparency regarding how Microsoft trains its AI models and how prompts and generated text are processed. There are also ongoing concerns about the transfer of personal data outside the EEA. This is especially problematic since Copilot deeply integrates with tools like Word, Outlook, and Teams, systems full of sensitive information.
Why This Matters for Education, Government, and Healthcare
For educational institutions, public bodies, and healthcare organizations, this is a critical signal.
Under the principle of privacy by design, AI features such as Copilot must be thoroughly assessed in advance for lawfulness and proportionality. A Data Protection Impact Assessment (DPIA) is essential in this process.
At Data & Business Legal, I help organizations conduct these assessments with both precision and legal certainty. As a Certified AI Compliance Officer (CAICO®), I provide tailored guidance for:
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Drafting DPIAs for AI functionalities;
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Developing internal AI policies in line with the AI Act and GDPR;
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Negotiating robust data processing agreements with vendors.
AI Compliance Is No Longer Optional
The orange classification of Copilot underscores that AI compliance is no longer a “nice-to-have”, but a non-negotiable prerequisite for the responsible use of generative AI.
Are you already using Copilot or similar AI tools?
Have your policies and contracts been legally reviewed, before the regulator decides to do it for you?
What’s your view: should governments and schools temporarily suspend Copilot, or is risk mitigation enough?
