Microsoft Copilot Bug Raises Enterprise Privacy Concerns
A serious privacy issue has surfaced involving Microsoft 365 Copilot, after reports confirmed that the AI system accessed and summarized company emails marked as Confidential. The incident alarmed enterprise customers who rely on strict data protection policies to keep sensitive information secure.
The bug was first identified on January 21, 2026, under tracking ID CW1226324. It affected organizations using advanced Data Loss Prevention safeguards, which should normally block AI tools from accessing protected content.
How Copilot Accessed Confidential Emails
According to Microsoft, the issue stemmed from an unintended programming bug. The flaw caused emails stored in Sent Items and Drafts folders to be passed into Copilot Chat for summarization. These emails carried confidentiality labels that should have excluded them from AI processing.
While Microsoft stated that other access controls remained intact, the fact that Copilot processed protected content conflicted directly with enterprise security expectations. Many organizations pay a premium for Microsoft 365 specifically to avoid such exposure.
Timeline of the Fix
Microsoft began rolling out a phased fix on February 10, 2026. The initial rollout did not reach all affected customers, which allowed concerns to spread quickly within enterprise IT circles. After wider media coverage, Microsoft accelerated the fix and deployed a global configuration update.
A Microsoft spokesperson later confirmed to Neowin that the issue had been fully resolved. The company emphasized that no unauthorized third parties accessed the data. The summaries were generated only when users themselves invoked Copilot, although the AI behavior did not properly filter protected content.
Why This Matters for Enterprise AI Trust
This incident reignited questions about Microsoft’s internal testing standards for AI driven features. In an era where companies are increasingly cautious about AI handling sensitive data, even a short lived bug can undermine confidence.
Although Microsoft insists no data leak occurred, the situation highlighted how quickly confidential information can become vulnerable when AI automation behaves outside its intended limits.
What Enterprises Should Do Next
For organizations with high security requirements, reviewing audit logs from the affected period may provide peace of mind. Microsoft has indicated that it can supply detailed incident reports to impacted customers upon request.
The episode serves as a reminder that AI integration, especially at the enterprise level, demands constant oversight. As Copilot and similar tools become more embedded in daily workflows, transparency and strict enforcement of data boundaries will remain critical.
 Origin: Neowin
