Connecting Your Firm’s Data to Microsoft 365 Copilot
Microsoft 365 Copilot can transform how your firm drafts, researches, and collaborates—but only if it can securely reach the right information at the right time. This practical guide shows attorneys and legal operations leaders how to connect firm data to Copilot safely and effectively, with concrete steps for governance, SharePoint architecture, Graph connectors, and automated workflows that keep client confidentiality front and center.
Table of Contents
- How Microsoft 365 Copilot Uses Your Data
- Readiness Checklist: Governance and Security Foundations
- Map and Prepare Your Firm’s Data Repositories
- Tutorial: Build a Matter-Centric Workspace with SharePoint, Teams, and Copilot
- Tutorial: Automate Client Intake and Briefing with Power Automate + Copilot
- Connect External Systems via Microsoft Graph Connectors
- Control Exposure: Sensitivity Labels, DLP, and Ethical Walls
- Monitoring, Auditing, and Measuring Impact
- Quick FAQ for Legal Teams
- Conclusion and Next Steps
How Microsoft 365 Copilot Uses Your Data
Copilot for Microsoft 365 grounds its responses in your organization’s data via the Microsoft Graph. It respects user permissions and ethical walls, only surfacing information the signed-in user can already access. Copilot does not train on your tenant’s content. Instead, it uses real-time retrieval from sources like SharePoint, OneDrive, Teams, Outlook, and connected systems via Microsoft Graph connectors.
| Data Source | Typical Legal Content | Where Copilot Surfaces It | Permission Model |
|---|---|---|---|
| SharePoint Online | Matter files, pleadings, templates, research memos | Word, Excel, PowerPoint, Teams, Microsoft 365 chat | Site/library permissions; sensitivity labels |
| OneDrive for Business | Attorney work-in-progress, personal notes | Microsoft 365 chat, Office apps | User ownership; shared links |
| Microsoft Teams | Channel messages, meeting transcripts, recordings | Teams Copilot, Microsoft 365 chat | Team membership; channel access |
| Outlook / Exchange | Client email threads, negotiation history | Copilot in Outlook, Microsoft 365 chat | Mailbox access; shared mailboxes |
| Graph Connectors | External DMS, wikis, case management systems | Microsoft 365 chat, Search, some Office apps | Connector-defined ACLs mirrored to Graph |
Key principle: Copilot is only as good as your permissions and information architecture. Clean access, consistent metadata, and clear security labels are prerequisites for reliable, confidential results.
Readiness Checklist: Governance and Security Foundations
Before connecting data at scale, confirm these settings to enforce confidentiality and client obligations.
- Licensing and enablement:
- Ensure users have Copilot for Microsoft 365 licenses and eligible Microsoft 365 plans (e.g., Business Standard/Premium or Microsoft 365 E3/E5).
- Enable Copilot experiences in the Microsoft 365 admin center as needed.
- Identity and access:
- Enforce multi-factor authentication for all accounts, including external guests.
- Use Conditional Access and sign-in risk policies via Microsoft Entra ID.
- Enable Privileged Identity Management for admin roles.
- Information protection:
- Define sensitivity labels (e.g., Public, Internal, Confidential, Privileged, Ethical Wall).
- Apply default labels at the site/library level and auto-label on upload for client data.
- Data Loss Prevention and compliance:
- Set up DLP policies for PII, PHI, financial data, and privileged content.
- Configure retention labels and policies for client/matter content lifecycle.
- Ensure Purview Audit (Standard/Premium) is enabled for forensic traceability.
- Ethical walls and external access:
- Use Information Barriers to separate conflicting client teams when required.
- Review guest access policies and sharing settings for Teams and SharePoint.
- Naming conventions and templates:
- Standardize site and team naming: Client-MatterNumber-MatterName.
- Create Teams and SharePoint templates with pre-set libraries, metadata, and labels.
Best practice: Pilot Copilot with a small, low-risk practice group first. Validate permission trimming, labeling, and DLP behavior before rolling out firmwide.
Map and Prepare Your Firm’s Data Repositories
A deliberate information architecture ensures Copilot can retrieve the most relevant documents quickly without exposing overbroad content.
Inventory and classify your sources
- Catalog all repositories: file shares, legacy DMS, SharePoint sites, OneDrive, matter mailboxes, and third-party systems.
- Identify sensitive categories: privileged, expert materials, trade secrets, minors/juvenile records, HIPAA data.
- Decide what should be migrated, archived, or connected via Graph connectors.
Design a matter-centric model
- Create a SharePoint site for each matter (or client) with predefined libraries.
- Associate each Teams matter workspace with the SharePoint site to centralize files and conversations.
- Set default sensitivity and retention labels at the site/library level.
| Library | Purpose | Key Metadata | Default Label |
|---|---|---|---|
| Pleadings & Filings | Court submissions and exhibits | Client, Matter #, Doc Type, Filing Date, Jurisdiction | Confidential |
| Discovery | Productions, RFPs, deposition materials | Client, Matter #, Doc Type, Custodian, Privilege | Privileged |
| Research & Strategy | Memos, case law, notes | Client, Matter #, Practice Area, Topic | Internal |
| Client Communications | Letters, statements, status updates | Client, Matter #, Recipient, Date | Confidential |
Migrate and remediate
- Use Migration Manager or SharePoint Migration Tool to move file shares into the matter sites.
- Apply metadata in bulk during migration; restrict inheritance of overly broad permissions.
- Run access reviews to remove stale members and shared links.
Tutorial: Build a Matter-Centric Workspace with SharePoint, Teams, and Copilot
This step-by-step guide creates a secure matter workspace that Copilot can use for drafting, summarizing, and research—without breaching confidentiality.
- Create a Teams template:
- In the Teams admin center, define a team template “Matter – Litigation.”
- Pre-create channels: General, Discovery, Research, Client-Updates.
- Attach a SharePoint site template with libraries from the table above and default labels.
- Instantiate a new matter:
- From Teams, create a team using your “Matter – Litigation” template. Name it “Acme-2026-0041 – Smith v. Acme.”
- Add only the case team (principals, associates, paralegals). Avoid oversized “All Litigation” groups.
- Set permissions and labels:
- In the linked SharePoint site, verify default sensitivity labels for each library (e.g., Privileged for Discovery).
- Add external guest users only to a dedicated “External” channel configured with separate permissions (if needed).
- Configure metadata:
- Create site columns: Client, MatterNumber, PracticeArea, DocType, PrivilegeStatus.
- Set default values at the library level so uploads inherit matter metadata automatically.
- Seed key documents:
- Upload engagement letter, case caption, docket, and initial research memos.
- Create a “Matter Overview” Word document summarizing parties, issues, and key deadlines.
- Use Copilot in context:
- In Teams, open the matter team and type to Copilot: “Summarize key deadlines and tasks from documents in this team; produce a two-week action plan.”
- In Word, open “Matter Overview” and select Draft with Copilot: “Create a client status update referencing filings and communications from this matter since last Friday.”
- Validate access:
- Test with a non-member user; they should not see any matter content via Copilot or Search.
- Run an audit search to confirm which users accessed sensitive files.
| Client Intake | → | Matter Team & Site | → | Documents & Metadata | → | Copilot Drafts & Summaries |
Tutorial: Automate Client Intake and Briefing with Power Automate + Copilot
This no/low-code automation captures intake data, spins up a secure workspace, and generates a Copilot-ready matter brief.
What you’ll build
- A Microsoft Forms intake form for new matters.
- A SharePoint list “Matters” to store structured case data.
- A Power Automate flow that:
- Creates a Teams matter workspace from your template.
- Creates SharePoint folders and applies metadata/labels.
- Generates a Word “Initial Matter Brief” and notifies the team.
Step-by-step
- Create the intake form:
- In Microsoft Forms, build “New Matter Intake” with fields: Client, Matter Name, Matter Number, Practice Area, Jurisdiction, Opposing Party, Key Dates, Notes.
- Create the SharePoint list:
- On your legal operations site, create a list “Matters.”
- Add columns matching the form fields and set MatterNumber as unique.
- Start a Power Automate cloud flow:
- Trigger: “When a new response is submitted” (Microsoft Forms), then “Get response details.”
- Action: “Create item” in SharePoint list “Matters.” Map form fields to columns.
- Create the Teams matter workspace:
- Add an HTTP or Teams action to instantiate a team from the “Matter – Litigation” template using the Matter Number and Name. Store the Team ID returned.
- Optionally add members from a distribution list or based on Practice Area.
- Provision SharePoint structure:
- Using SharePoint actions, create folders in each library (e.g., “2026-0041 – Initial Filings”).
- Set library default metadata and sensitivity labels; confirm they apply to new folders.
- Generate the initial brief:
- Prepare a Word template “Initial Matter Brief.dotx” with content controls (Client, Matter #, Parties, Issues, Deadlines).
- Use “Populate a Microsoft Word template” action to fill fields from the list item.
- Save the brief into the matter’s “Client Communications” library.
- Notify the team and enable Copilot use:
- Post a Teams message in the General channel with links to the brief and libraries.
- Suggest prompt: “From the Initial Matter Brief and documents in this team, draft a client-friendly overview with next steps by practice area.”
- Harden security:
- Add a step to apply the “Privileged” sensitivity label to the Discovery library via site script or API.
- Send an access review task to the matter lead to confirm members within 48 hours.
Tip: Use Copilot in Power Automate’s “Describe it to design it” to draft your flow. Paste a description of the above steps and refine the generated flow, then add your security checks.
Connect External Systems via Microsoft Graph Connectors
If essential knowledge lives outside Microsoft 365—such as a legacy DMS, wiki, or case management system—Graph connectors can index that content into the Microsoft Graph so Copilot can reference it while preserving permissions.
When to use a connector
- You need read-only, permission-trimmed access from Copilot to content outside SharePoint/OneDrive/Teams.
- Migrating data is impractical (volume, vendor lock-in, or dual-running systems).
Common connector options for legal
| Connector | Use Case | Notes |
|---|---|---|
| File Share (on-prem) | Legacy matter folders | Index key paths while you plan migration; map NTFS ACLs to Graph. |
| Confluence / Jira | Knowledge bases, project work | Useful for PMO/legal ops and cross-functional teams. |
| Salesforce | Client account intelligence | Coordinate BD insights with client teams; permission mapping required. |
| ServiceNow | IT/legal service requests | Surface ticket history and SLAs in Copilot. |
| Partner DMS connectors | iManage, NetDocuments | Use certified partners to maintain ethical walls and DMS security models. |
Configuration steps
- In the Microsoft 365 admin center: go to Settings > Search & intelligence > Data sources.
- Select “Add” and choose your connector (Microsoft-built or partner).
- Authenticate to the source and define the crawl scope (sites, matters, or collections).
- Map schema: set title, URL, last modified, and custom properties (Client, Matter #, Privilege).
- Define access control lists (ACLs) that mirror the source permissions.
- Schedule crawl/refresh frequency and test with a pilot user group.
- Communicate availability and proper-use guidance to attorneys (what’s indexed, what isn’t).
Governance note: Index only what you’re comfortable making discoverable to authorized users via Copilot. Exclude ultra-sensitive repositories or enforce stricter labels and information barriers.
Control Exposure: Sensitivity Labels, DLP, and Ethical Walls
Copilot does not override your security model. Use the following controls to prevent data leakage and conflicts of interest.
Sensitivity labels and protected libraries
- Apply default labels at the library level so all uploads inherit the correct protection.
- Require justification to downgrade labels and audit such events.
- Enable encryption and watermarking for “Privileged” and “Confidential – Client” labels.
Data Loss Prevention (DLP)
- Create DLP policies for client identifiers, SSNs, medical codes, and bank data relevant to your practice areas.
- Block external sharing or copying when high-risk content is detected.
Information Barriers and conflict management
- Segment users (e.g., Team A: Contoso; Team B: Fabrikam) to enforce no-communication boundaries in Teams, SharePoint, and OneDrive.
- Re-test Copilot responses from users across barrier boundaries to verify no leakage.
Guest access and external collaboration
- Restrict guest access to dedicated channels and libraries with least-privilege principles.
- Use expiration policies for guest accounts and shared links.
Monitoring, Auditing, and Measuring Impact
Operational visibility ensures your Copilot deployment remains compliant and high-value.
- Copilot usage reports:
- In the Microsoft 365 admin center, review Copilot adoption by app (Word, Outlook, Teams) and by department.
- Correlate usage with training sessions and practice area pilots.
- Purview Audit:
- Track access to sensitive files, label changes, and anomalous downloads.
- Create alerts for spikes in privileged content access.
- Power BI dashboards:
- Monitor time-to-first-draft, response times to client updates, and paralegal throughput.
- Establish a baseline pre-Copilot, then measure month-over-month improvement.
- Quality checks:
- Institute a peer review step for all Copilot-generated client deliverables.
- Capture feedback on accuracy and completeness to refine prompts and data sources.
Quick FAQ for Legal Teams
Does Copilot train on our client data?
No. Copilot for Microsoft 365 grounds responses in your tenant data at request time and honors your permissions. Your content and chat history aren’t used to train the underlying foundation models.
Can Copilot access documents a user wouldn’t otherwise see?
No. Copilot inherits Microsoft Graph permissions. If a user cannot access a file in SharePoint/Teams/OneDrive, they won’t see it via Copilot.
What about data residency and compliance?
Microsoft 365 adheres to your tenant’s data residency and compliance commitments. Review Microsoft’s compliance offerings and ensure Purview governance is configured for your jurisdictional needs.
Should we migrate from our DMS or connect it?
It depends on scale and risk. Use Graph connectors for read-only discovery when migration is impractical. For long-term agility, consider staged migration of active matters to SharePoint with strict labels and templates.
How do we prevent cross-matter leakage?
Use matter-specific Teams and SharePoint sites, enforce least-privilege membership, apply sensitivity labels, and implement Information Barriers where conflicts demand it. Periodic access reviews are essential.
Conclusion and Next Steps
Connecting your firm’s data to Microsoft 365 Copilot pays dividends when governance, architecture, and automation are aligned. Start with a secure matter template, automate intake, and bring in external systems via Graph connectors—always under strict labeling and access controls. With the right foundation, attorneys get faster, more accurate drafts and insights, while client confidentiality stays protected.
Want expert guidance on bringing Microsoft CoPilot into your firm’s legal workflows? Reach out to A.I. Solutions today for tailored support and training.
