Why Copilot Needs AI-Ready Data
Authored by EncompaaS - Sep 3, 2025
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Microsoft Copilot is on every CIO’s radar, seen by many as the next step in workplace productivity and AI adoption. To deliver its full potential, Copilot needs access to complete, trusted, and well-governed data; the foundation for business-ready outcomes.
The challenge of effectively deploying AI tools has become clear from early evaluations. For instance, the Australian Government’s recent Microsoft 365 Copilot trial found that while Copilot improved efficiency and productivity, its reliability was limited by incomplete and inconsistent data foundations. This reinforces that if Copilot is deployed over messy, siloed, or poorly managed content, the results will be inaccurate, risky, and potentially non-compliant.
How Copilot works and where data gaps remain
At its core, Microsoft Copilot leverages large language models, including OpenAI technology, combined with Microsoft’s security and compliance controls. It is embedded across Microsoft 365 applications such as Word, Excel, Teams, and Outlook, transforming user prompts into summaries, drafts, and actionable insights using data within the Microsoft 365 environment.
While Copilot can access content in SharePoint, OneDrive, and Teams, enterprise knowledge often extends far beyond Microsoft 365. Critical records and information may reside in legacy ECM platforms, file shares, archives, or other structured and unstructured data sources. For organisations with years of accumulated content and complex regulatory obligations, integrating these sources is essential to provide Copilot with a complete, accurate, and governed view of enterprise knowledge.
The recent evaluation of Copilot revealed that Copilot’s outputs are only as strong as the data it has available. Without full coverage, results can be inconsistent and less reliable for decision-making.
What’s missing is a way to prepare and connect all enterprise data so Copilot has a complete, compliant foundation to work with.
EncompaaS closes this gap by extending Copilot’s reach beyond Microsoft 365. It connects to enterprise-wide data, including legacy, modern, structured, and unstructured information, ensuring that insights are complete, compliant, and context-rich.
How data readiness maximises Copilot’s value
Siloed content limits Copilot’s view
Enterprise knowledge doesn’t live in one place. Important content often sits in HR platforms, finance systems, legal repositories, or network drives. As Copilot cannot natively access these sources, its answers generally come from an incomplete view of the organisation.
By indexing content in place, both legacy and cloud, EncompaaS makes it visible to Purview and usable by Copilot, ensuring insights are drawn from the full knowledge base without costly migrations.
Why consistent governance matters
SharePoint’s complex permission model can lead to inconsistencies that increase risk. While Copilot honours existing permissions, any misconfigurations can result in sensitive information being exposed to unintended audiences. For regulated industries, this poses a significant compliance and security challenge. Gartner warns that fewer than 10% of organisations are prepared for AI risk management, with 86% struggling to meet security, privacy, and regulatory obligations.
EncompaaS addresses this by applying consistent sensitivity labels and governance policies across all repositories. This ensures Copilot interacts only with content that is properly classified, secured, and governed — reducing risk while enabling safe, compliant use of AI.
Data quality shapes Copilot’s reliability
Large repositories often contain multiple versions of the same policy, procedure, or contract. Without clear governance, Copilot may surface the wrong version — highlighting why authoritative, well-classified content matters. By eliminating duplicates and enriching metadata, organisations give Copilot the clarity it needs to provide accurate answers. Poor data quality is costly, with estimates suggesting it drains the U.S. economy of an estimated $3 trillion each year.
EncompaaS improves reliability by enriching metadata, normalising classification, and eliminating duplicates so Copilot can identify and return the right version.
Trusted data powers trusted outputs
Copilot will always answer, but without enriched metadata, context, and governance, those answers may be misleading or incomplete. This undermines user trust and decision-making. McKinsey estimates that generative AI, when powered by trusted, governed data, could boost productivity by $2.6–4.4 trillion annually.
EncompaaS prepares raw content to be AI-ready, enriching and governing it so Copilot delivers outputs that are accurate, compliant, and business-ready.
Why traditional data management doesn’t prepare data for AI
Traditional data management practices, such as cleansing duplicates, removing outliers, and archiving stale files, are no longer enough for AI. AI Assistants like Copilot need more than just “clean” data; they require AI-ready data that is enriched with metadata, governed by consistent policies, and meets compliance standards.
Without enrichment and consistent classification, Copilot may not distinguish between reliable records and outdated drafts. This lack of information governance poses a risk when AI-generated outputs are used for decision-making, compliance reporting, or customer interactions.
EncompaaS extends beyond traditional compliance by automating classification, retention, and sensitivity labels across both legacy and modern systems. It offers the enriched and contextual foundation that Copilot requires to deliver reliable insights at scale by embedding compliance into the design process.
How EncompasS Empowers Copilot for Success
EncompaaS prepares and connects enterprise data so Copilot can work with a complete, compliant foundation. By overlaying governance and enrichment, it creates a single, AI-ready data foundation that ensures Copilot delivers accurate and compliant results.
Connects to all enterprise data
EncompaaS discovers and indexes content across legacy ECM, file shares, archives, and Microsoft 365. This extends Purview’s governance and Copilot’s reach across the enterprise, providing access to the complete enterprise knowledge base without a costly migration.
Enriches and organises content
Through automated classification and metadata enrichment, EncompaaS applies consistent categories and removes duplicates. Copilot can then surface the authoritative versions of policies, contracts, or records, avoiding outdated drafts and redundant files.
Automates governance and compliance
With policy-driven enforcement, EncompaaS applies retention schedules, sensitivity labels, and access controls, ensuring Copilot respects regulatory requirements and does not expose sensitive data.
Ensures continuous data readiness
Governance and enrichment are applied automatically as new content is created across systems, so that Copilot always works with updated, accurate, and compliant information, reducing compliance risks while building trust in AI outputs.
Business outcomes of getting data Copilot-ready
When Copilot uses clean, governed, and AI-ready data, businesses see tangible value:
- Accurate, reliable answers: Users develop confidence in Copilot outputs, leading to faster and more informed decisions.
- Reduced compliance and privacy risks: Sensitive data is protected with consistent governance, ensuring Copilot only surfaces information that meets regulatory requirements.
- Increased adoption and trust: Employees are more inclined to rely on Copilot when outputs are complete, compliant, and business-ready.
- Maximised ROI: A unified data strategy enhances the value of Microsoft 365 and AI investments, boosting productivity and insight across the organisation.
Copilot delivers best with AI-ready data
Copilot has the potential to transform enterprise productivity, but like any GenAI assistant, its outputs are only as strong as the data it can access. For CIOs and data leaders seeking to extract the most value from Copilot, data must be AI-ready and governed.
EncompaaS ensures that your content is discovered, enriched, secured, and consistently governed, allowing Copilot to provide accurate, compliant, and business-ready results from day one.
Experience the difference when Copilot runs on AI-ready, compliant data. Sign up for an AI readiness assessment with EncompaaS.
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