01 / At a glance
Microsoft Copilot in one page
Two products share one name. Microsoft 365 Copilot runs inside your firm's tenant. The consumer Copilot app does not. Use the first for work.
| Plans | Business: Copilot Chat (included) and the paid Copilot licence. Consumer: free app and Microsoft 365 personal plans. |
|---|---|
| Trains on your chats? | Business: no. New consumer app (August 2026): not used to train foundation models. |
| Your instructions live in | Copilot Chat > Settings and more > Chat settings > Personalization > Custom instructions |
| Instruction limit | No limit is published. Keep it short and put the key rules first. |
| Memory | Saved memories, in the same Personalization menu |
| Custom assistants | Agent Builder, and Notebooks |
| Governance | Microsoft Purview: audit, retention, eDiscovery, data loss prevention |
The setup path
Governance gap: memory
Copilot memory is in preview. Purview retention does not apply to it, and memory actions create no audit entries.
The admin switch is Enhanced personalization. It is on by default. Decide on it before rollout.
02 / Set it up
Five steps, in order
Do them in this order. Data controls come before anything personal goes in.
Microsoft 365 admin center
Use Microsoft 365 Copilot or the included Copilot Chat, signed in with your work account. Business prompts and responses are not used to train foundation models.
Purview > DSPM for AI
Set retention, eDiscovery, and data loss prevention for Copilot activity in Purview. Decide on Enhanced personalization (memory) for the tenant.
Chat settings > Personalization > Custom instructions
Open Copilot Chat, then Settings and more. Paste the instructions the master prompt writes for you.
Notebooks > New notebook
One notebook per recurring task. For repeat workflows, build an agent with Agent Builder. Admins approve agents in Integrated apps.
Chat settings > Personalization > Manage saved memories
Delete stale memories. Turning memory off does not delete what is already saved.
03 / The master prompt
Let Microsoft Copilot set itself up
Paste this into a new chat. It interviews you, then writes your setup for you.
You are my setup chief of staff for Microsoft 365 Copilot. Your job: set Microsoft 365 Copilot up so it works the way I work, safely. Work in three stages. Ask one question at a time. Wait for my answer. STAGE 1. INTERVIEW (no more than 10 questions) Ask about: my role and organization, the work I want help with, the five tasks I repeat most, the tools I use every day, how I like answers written (length, tone, format), and what I must never share with an AI tool. STAGE 2. WRITE MY SETUP a) My custom instructions text. Keep it under 1,500 characters. Write it in plain sentences. Put the most important rules first. b) Three Notebooks I should create. For each one: a name, its purpose, its instructions, and the files I should add. c) Two agents I should build in Agent Builder for my most repeated tasks. For each: a name, instructions, and which SharePoint sites it should draw on. d) A checklist of the privacy settings I should confirm, with where to find each one in Microsoft 365 Copilot. STAGE 3. TEST Give me three test prompts that prove the setup works, and describe what a good answer looks like for each. RULES - Do not invent features. If you are not sure a setting exists in Microsoft 365 Copilot today, say so and tell me where to check. - Never ask me for passwords, account numbers, client names, or personal data. If I start to share them, stop me. - Plain language. Short sentences. Tables where they help.
04 / Govern first
Best practices
- Turn off model training before your first real prompt
- Use an approved business tier for firm work, or nothing
- Keep one workspace per recurring task
- Check every number and citation it gives you
- A person signs off before anything leaves the building
- Passwords, API keys, or access tokens
- Client names, account numbers, or holdings
- Material non-public information
- Personal data about staff or members
- Anything under a confidentiality agreement
Specific to Microsoft Copilot
- Copilot sees what the user can see. Fix SharePoint and Teams permissions before rollout, or Copilot will surface overshared files.
- Graph connector data respects user permissions. Check what each connector exposes.
- The EU Data Boundary applies, but Anthropic models in Copilot are excluded from it.
- Keep staff off the consumer Copilot app for firm work. It sits outside your tenant controls.
Starter instructions
Prefer to write them yourself? Fill in the brackets, then paste into Copilot Chat > Settings and more > Chat settings > Personalization.
About me: I am a [role] at a [type of organization]. I use you for [three main jobs]. How to answer: - Lead with the answer, then the reason. - Keep it short. Use tables for comparisons. - Say plainly when you are unsure, and how I can check. - Cite a source for every number or factual claim. Never: - Invent figures, quotes, or sources. - Give a final legal, tax, or investment decision. Flag it for a person. - Ask me for client names, account numbers, or passwords.
05 / Data and controls
What to check, and where
| Training | Business data is not used to train foundation models. |
|---|---|
| Audit and eDiscovery | Purview: Copilot activity is searchable and auditable. |
| Retention | Purview retention policies cover Copilot chats. Not memory. |
| Memory | Stored in a hidden folder in the user's Exchange mailbox. Admin switch: Enhanced personalization. |
| Agents | Admins approve in Microsoft 365 admin center > Integrated apps. |
| Data boundary | EU Data Boundary applies. Anthropic models excluded. |
| Consumer app | Delete or export activity in the Microsoft privacy dashboard. |
06 / Sources
Where every fact comes from
- Understanding the different Copilot experiences
https://support.microsoft.com/topic/understanding-the-different-microsoft-copilot-experiences-cfff4791-694a-4d90-9c9c-1eb3fb28e842 - Enterprise data protection in Copilot
https://learn.microsoft.com/copilot/microsoft-365/enterprise-data-protection - Microsoft 365 Copilot privacy
https://learn.microsoft.com/copilot/microsoft-365/microsoft-365-copilot-privacy - Copilot consumer activity history
https://support.microsoft.com/en-au/privacy/microsoft-copilot/activity-history - Customize how Microsoft 365 Copilot responds
https://support.microsoft.com/en-us/microsoft-365-copilot/customize-how-microsoft-365-copilot-responds-to-you - Saved memories in Microsoft 365 Copilot
https://support.microsoft.com/topic/b3231eae-9e60-4b3c-ac58-81fddbe56279 - Copilot consumer privacy controls
https://support.microsoft.com/en-US/Privacy/microsoft-copilot/privacy-controls - Agent Builder
https://learn.microsoft.com/en-us/microsoft-365/copilot/extensibility/agent-builder - Microsoft 365 Copilot Notebooks
https://support.microsoft.com/en-us/microsoft-365-copilot/get-started-with-microsoft-365-copilot-notebooks - Microsoft Purview for AI
https://learn.microsoft.com/en-us/purview/ai-microsoft-purview - Copilot personalization and memory (admin)
https://learn.microsoft.com/en-us/microsoft-365/copilot/copilot-personalization-memory
Settings checked on 29 October 2026. Platforms change their menus often. Follow the source links before relying on a path. This guide is general information. It is not legal, compliance, or investment advice.