Knowledge Hub · AI & Copilot
AI & Microsoft Copilot FAQs for Sussex businesses
Plain-English answers to the AI questions we hear most, from Copilot licences and costs to Copilot Cowork, Microsoft Scout, shadow AI and staying compliant. Written for small and medium-sized businesses and charities across Sussex and the UK.
Written and reviewed by Yann Davies, Managing Director, ABCOM IT Solutions · Last reviewed: 28 September 2026
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Getting started
Starting with AI the safe way
Where to begin, what our AI Readiness Sprint covers, and how we use AI ourselves.
Where should a small business start with AI?
Start with your data and security, not the software. First, find out what AI your staff already use. Then make sure Microsoft 365 permissions, MFA and data handling are in order, and agree a simple AI policy. After that, pick two or three time-consuming tasks to try AI on, such as meeting notes, email drafting or reporting.
Businesses that skip the groundwork are the ones that end up with data leaks or wasted licences. ABCOM's four-week AI Readiness Sprint follows exactly this order for Sussex and UK businesses.
What is ABCOM's AI Readiness Sprint?
The AI Readiness Sprint is ABCOM's four-week programme to get your business ready to use AI safely. Each week has a focus:
- Week 1, Discover: current AI use, including shadow AI, plus your goals and risks.
- Week 2, Secure: Microsoft 365, SharePoint, Teams, MFA and permissions.
- Week 3, Prepare: your AI policy and staff guidance.
- Week 4, Roadmap: quick wins, Copilot readiness and automation ideas.
It's designed for SMEs and charities, especially those considering Microsoft Copilot. Price on request. Find out more or book a review.
What do we get at the end of the AI Readiness Sprint?
You receive:
- an executive report
- your AI Readiness Score
- a Microsoft 365 review
- a Copilot readiness assessment
- AI policy guidance
- a risk register
- a prioritised roadmap
- staff training recommendations
ABCOM can then help put the recommendations in place, from security fixes and policies to Copilot rollout and training. Book your AI Readiness Review.
How do you prepare your business for Microsoft 365 Copilot and AI adoption?
Preparing your business for Microsoft 365 Copilot involves more than just switching on AI. To use Copilot safely and effectively, organisations need the right data, security, and governance foundations in place.
Key readiness steps include ensuring Microsoft 365 permissions are correctly configured, sensitive data is properly labelled or restricted, and users are protected with strong identity security such as multi-factor authentication. Businesses should also define clear AI usage guidelines so that staff understand when and how AI tools should be used.
By preparing your environment first, Copilot can deliver real productivity gains while reducing data exposure, compliance risks, and unintended information sharing.
What is Microsoft 365 Copilot and how does it help businesses?
Microsoft 365 Copilot is Microsoft’s AI assistant built directly into familiar tools such as Outlook, Word, Excel, Teams, and SharePoint, designed to help businesses work faster and more efficiently.
It uses artificial intelligence to draft emails, summarise meetings, analyse data, create documents, and surface relevant information — all while operating within your Microsoft 365 security, identity, and data boundaries. Unlike public AI tools, Copilot does not train on your data and only accesses information users already have permission to see.
For businesses, Microsoft 365 Copilot helps reduce admin time, improve decision-making, and support staff productivity, while maintaining compliance with data protection and security requirements.
How does ABCOM use AI itself?
We use AI inside ABCOM before recommending it to clients. We use it to add detail and context to helpdesk tickets, speed up internal documentation, automate repetitive service desk admin, and test AI-assisted triage and knowledge search. The chat assistant on this website is also AI-powered and trained on our own knowledge base.
It means our advice comes from real, hands-on use, not sales brochures. See AI in Practice.
Microsoft Copilot
Copilot licences, costs and Frontier
What you get with free Copilot Chat and paid Copilot, what it costs, and Microsoft’s Frontier early-access programme.
What's the difference between free Copilot Chat and a paid Microsoft 365 Copilot licence?
- Copilot Chat (free): included with Microsoft 365 business plans when you sign in with your work account. It's a secure AI chat for drafting, summarising and web-based questions, and it's much safer than free consumer chatbots.
- Microsoft 365 Copilot (paid): can also use your organisation's data (emails, Teams chats, meetings and SharePoint files), and it works fully inside Word, Excel, PowerPoint, Outlook and Teams. It also includes features like Copilot Cowork, some of which use Copilot Credits.
Many businesses start with the free Copilot Chat for everyone and buy paid licences only for the people who'll use them most.
How much does Microsoft 365 Copilot cost for a small business?
Microsoft 365 Copilot Business is an add-on to an eligible Microsoft 365 business plan. Microsoft's UK list price is from £16.10 per user per month on an annual plan. Prices can vary, and Microsoft sometimes runs promotions. Bundles with Business Standard or Business Premium are also available. Some advanced features, such as Copilot Cowork, may use pay-per-use Copilot Credits on top.
You don't have to license everyone. We usually recommend a pilot with a few heavy users first. ABCOM can quote Copilot licences and check you're not paying for licences you don't need. See Microsoft 365 & Azure Savings.
Copilot vs ChatGPT: what's the difference for businesses?
Microsoft 365 Copilot and ChatGPT are both AI assistants built on large language models, but they are designed for different jobs. The biggest difference for businesses is access to your company data and how that data is protected.
Microsoft 365 Copilot
- Built into Word, Excel, PowerPoint, Outlook and Teams
- Can use your emails, files, chats and meetings, within your existing permissions
- Covered by Microsoft's enterprise data protection when used with a work account; your data is not used to train the models
- Needs a paid Copilot licence on top of Microsoft 365. Copilot Chat, a web-grounded version without access to your files, is included with most Microsoft 365 business plans.
ChatGPT
- A general-purpose assistant for drafting, research, analysis and coding
- Does not see your Microsoft 365 data unless you paste it in or connect it
- ChatGPT Business and Enterprise plans do not use your data for training by default. Free and personal plans may, unless users opt out.
Which should we use?
Many organisations use both: Copilot for work inside Microsoft 365, and a business ChatGPT plan for general tasks. Whatever you choose, set clear rules on what data staff can share. See is ChatGPT safe to use at work? and our AI Readiness Sprint.
What is Microsoft Frontier?
Frontier is Microsoft's early-access programme for new AI features in Microsoft 365 and Copilot. It lets organisations try agents and tools, such as Copilot Cowork's app builder, Microsoft Scout and Project Opal, before they are generally available.
Frontier features are previews. They can change, have limits, or never be fully released, so we recommend trying them with a small pilot group first rather than the whole business. ABCOM can help you decide whether Frontier is worth turning on and who should test it.
How do we get access to Microsoft Frontier features?
You need three things:
- A Copilot licence: each user needs an active Microsoft 365 Copilot licence.
- Organisation opt-in: your organisation must opt in to Frontier in the Microsoft 365 admin centre. It is not on by default.
- User access: your IT admin decides which users and agents can use it.
Once it is enabled, Frontier features show up with a "Frontier" label in Copilot Chat, in the Agent Store, and inside apps such as Word and Excel. Some features need the Current or Insider update channel. If you're an ABCOM managed client, we can switch Frontier on for a pilot group for you.
Do Microsoft Frontier features cost extra?
Some do. Many Frontier features are included with your Microsoft 365 Copilot licence. Others use usage-based billing, measured in Copilot Credits, on top of the licence.
Before you enable anything, check which features use credits and set spending limits in the admin centre. We can set up those limits and alerts so there are no surprises on your bill.
What is Microsoft Frontier Accelerate?
Frontier Accelerate is Microsoft's customer benefits programme for AI adoption for its 2026/27 financial year. It brings together three things through Microsoft partners:
- Microsoft's expert guidance
- funding and incentives that can lower the cost of an AI project
- staff training
It covers Copilot, Microsoft 365 productivity, business processes, Azure and security. As a Microsoft partner, ABCOM can tell you whether any current Frontier Accelerate funding or offers apply to your organisation.
What does "frontier AI" mean?
"Frontier AI" usually means the most advanced AI models available at any given time, such as the latest models from OpenAI, Anthropic, Google and Microsoft. These models can now plan and carry out multi-step tasks, not just answer questions.
For small businesses, that means AI can take on real admin work: drafting, scheduling, reporting and research. It also means AI can reach more of your data, so security and permissions matter more than ever. Microsoft also uses "Frontier" as the name of its early-access programme for new Copilot features.
What are AI agents?
AI agents are AI assistants that can take actions, not just answer questions. An agent can follow a process: read an email, look up a customer record, draft a reply and book a follow-up, asking a person to approve key steps.
Microsoft 365 now includes ready-made agents, and businesses can build their own with Copilot Studio. Agents can save a lot of admin time. Each one should have clear limits, the minimum access it needs, and a named person responsible for it.
What is Copilot Studio?
Copilot Studio is a low-code Microsoft tool that allows organisations to customise Microsoft Copilot for Microsoft 365 and build secure, business-specific AI copilots.
It enables businesses to tailor Copilot to their own data, processes, and scenarios, as well as create standalone Copilots for internal use, such as IT support, HR queries, or policy guidance — all with built-in security, access controls, and analytics.
Copilot Studio is built on Microsoft’s Power Platform (formerly Power Virtual Agents) and integrates with Azure OpenAI and other Microsoft AI services, making it suitable for both IT teams and business users.
Copilot Cowork & Scout
AI that does the work: Cowork and Scout
Microsoft’s new AI tools that carry out tasks for you, and how they are billed.
What is Copilot Cowork (Microsoft Cowork)?
Copilot Cowork is the part of Microsoft 365 Copilot that does work for you, rather than just suggesting what to do. You describe the result you want. Cowork then plans the steps and carries them out across Outlook, Teams, Word, Excel, PowerPoint, OneDrive and SharePoint.
For example, it can draft and send emails, schedule meetings, create documents, run research and prepare daily briefings. It asks for your approval before important actions such as sending an email.
Microsoft built it with Anthropic, using the technology behind Claude Cowork. It is generally available for work accounts. Some extras, such as its app-building feature, are still in Frontier preview.
What can Copilot Cowork be used for in a small business?
Common uses include:
- a daily briefing of your emails, meetings and deadlines
- meeting recaps sent to attendees
- monthly reports pulled together from spreadsheets
- tidying up SharePoint or OneDrive folders
- customer update emails
- tasks that run automatically on a schedule or when an email arrives
Cowork can only see what the user can already see. If your SharePoint permissions are too open, Cowork will find those files too. That's why we check permissions before switching it on.
How is Copilot Cowork billed?
Cowork uses Copilot Credits, Microsoft's pay-per-use currency for its more advanced AI features. Pay-as-you-go credits cost from around 1p each. Prices can vary, and pre-purchased credit packs can work out cheaper. How many credits a task uses depends on how long it runs, how much of your data it reads and how many actions it takes.
Your normal Copilot licence still covers Copilot Chat and Copilot in Word, Excel, PowerPoint, Outlook and Teams. Admins can control spending in the Microsoft 365 admin centre under Copilot → Cost management. This is where you set organisation-wide and per-user limits, alerts and approval requests.
What changes to Microsoft Copilot billing happen in November 2026?
From 2 November 2026, new Microsoft 365 Copilot Business licences bought through a Microsoft partner (CSP) will have usage-based billing switched on by default. Microsoft will set a default spending limit of around £8 per user per month for features like Cowork. Microsoft sets the limit in US dollars, so the exact figure in pounds can vary.
This does not mean every Copilot chat costs extra. Everyday Copilot use is still covered by the licence. Only advanced features that use credits count towards the limit. We recommend reviewing that default limit before November, and we can set it for you.
What is the Microsoft Scout app?
Microsoft Scout is a new AI desktop app for Windows 11 and macOS that works in the background on your behalf. It connects to Outlook, Teams, OneDrive and SharePoint. It can also work with files on your computer and control a web browser. It can run tasks on a schedule and remembers your preferences. It asks for approval before sensitive actions such as sending email or running commands.
Scout is currently an experimental Frontier release. It needs Frontier enrolled, device policies set up by your IT admin, and each user to opt in. Because it can act on your computer as well as in Microsoft 365, we recommend a controlled pilot before wider use.
What's the difference between Copilot Cowork and Microsoft Scout?
- Copilot Cowork: runs in Microsoft's cloud and works across your Microsoft 365 apps. It is available now for work accounts.
- Microsoft Scout: installs on your computer. It can also work with local files, run commands and use a web browser, and it can keep working in the background. It is still an experimental Frontier preview.
For most small businesses, Cowork is the sensible place to start.
Your data
Data, security and Microsoft Fabric
What Copilot can see, whether it trains on your data, private AI, and Microsoft Fabric.
Is Microsoft 365 Copilot secure for business use?
Yes, Microsoft 365 Copilot is designed for business use and operates within Microsoft’s existing security, identity, and compliance controls. Copilot only accesses data that users already have permission to see and does not train AI models on your organisation’s data.
When deployed correctly, Copilot supports security features such as role-based access control, multi-factor authentication, audit logging, and data loss prevention. However, proper configuration and governance are essential to prevent accidental data exposure.
What data can Microsoft 365 Copilot access?
Microsoft 365 Copilot can access the same work data that the signed-in user already has permission to see in Microsoft 365. That includes their emails, calendar, chats, meetings and the files they can open in OneDrive, SharePoint and Teams. It cannot see anything the user is not allowed to access.
How does Copilot find your data?
Copilot uses Microsoft Graph, the service that connects your Microsoft 365 content, to search for relevant information when you ask a question. It respects your existing permissions, sensitivity labels and retention policies. Data stays within your Microsoft 365 tenant and service boundary.
Why permissions matter
Copilot does not create new access, but it makes existing access much easier to use. If a SharePoint site or folder has been overshared, for example shared with "Everyone", Copilot can surface that content to anyone in the organisation. Before rolling out Copilot, review:
- Who has access to sensitive SharePoint sites, Teams and shared folders
- Links shared with "anyone" or the whole organisation
- Whether sensitive files have sensitivity labels applied
Does Copilot use my data to train AI?
No. Microsoft states that prompts, responses and data accessed through Microsoft Graph are not used to train the foundation AI models. See does Copilot train on your company data?
Our AI Readiness Sprint reviews permissions, labelling and governance so you can roll out Copilot safely.
Does Microsoft Copilot train on your company data?
No. Microsoft says that for Microsoft 365 Copilot and Copilot Chat used with a work or school (Entra ID) account, your prompts, responses and organisational data are not used to train the underlying AI models.
What protections apply?
- Enterprise data protection: when users sign in with their work account, Copilot Chat and Microsoft 365 Copilot are covered by Microsoft's enterprise data protection terms, the same commitments that apply to Exchange and SharePoint.
- Permissions respected: Copilot only uses data the user is already allowed to access.
- Data stays in your tenant: content is processed within the Microsoft 365 service boundary.
What about personal accounts?
The consumer version of Copilot, used with a personal Microsoft account, has different terms. Staff should always use their work account for work tasks. Make this clear in your AI usage policy.
Read what data Copilot can access, or ask about our AI Readiness Sprint.
Can we use AI without our data leaving the building?
Yes. For businesses with highly confidential data, such as accountants, legal firms or healthcare, AI can run on a private server in your office or in your own cloud, with no data sent to public AI services.
ABCOM has built a private, offline AI server for a London accountancy practice. It lets their team search and summarise client documents securely. See AI in Practice for real projects.
What is Microsoft Fabric?
Microsoft Fabric is Microsoft's all-in-one data and analytics platform. It brings Power BI reporting, data integration, data warehousing, real-time data and AI tools together in one service, with all your data stored in one place called OneLake.
Instead of paying for each tool separately, you buy a single pool of computing capacity that every part of Fabric shares.
Does a small business need Microsoft Fabric?
Most small businesses don't need Fabric. Power BI Pro and well-organised Microsoft 365 data are usually enough.
Fabric starts to make sense when you have data spread across several systems, such as a CRM, finance, spreadsheets and databases, and want it combined for reporting or AI. The smallest capacity (F2) costs from around £200 a month on pay-as-you-go, plus storage. Below the larger capacities, report users still need Power BI Pro licences.
If you're unsure, our AI Readiness Sprint includes a look at whether your data is ready and whether Fabric is worth it.
Risk & compliance
Shadow AI, policies and the law
Keeping staff use of AI safe, and what UK GDPR and the EU AI Act mean for you.
What is shadow AI?
Shadow AI is when staff use AI tools the business hasn't approved or doesn't know about. Examples include pasting customer details into a free chatbot, uploading contracts to an AI summariser, or installing AI browser extensions.
It usually happens because people are trying to work faster, not to cause harm. The risk is that confidential or personal data leaves your control, which can breach UK GDPR or client contracts. We found shadow AI at a Sussex recruitment firm during an AI Readiness Sprint. Staff were already using ChatGPT with no policy in place.
How do we reduce shadow AI in our business?
- Find out which AI tools people already use.
- Give them an approved, secure alternative, such as Microsoft 365 Copilot Chat with your work account.
- Write a short AI acceptable use policy.
- Block or monitor risky tools where needed.
- Train staff on what data must never go into AI tools.
Banning AI outright rarely works. People just use it on their phones. ABCOM's AI Readiness Sprint covers all of these steps.
Is ChatGPT safe to use at work?
ChatGPT can be useful for general tasks, but it is a public AI service, which means businesses must be cautious.
Sensitive information such as customer data, financial details, internal documents, or credentials should never be entered into public AI tools.
Without clear policies, staff may unintentionally expose confidential data.
Many organisations choose to restrict ChatGPT usage or adopt secure, business-grade alternatives for workplace use.
How can businesses use ChatGPT safely and effectively?
ChatGPT can be a valuable AI tool for small and medium-sized businesses when used correctly. It can help automate everyday tasks such as drafting emails, summarising documents, generating ideas, and answering common questions — freeing up staff time and improving productivity.
However, ChatGPT is a public AI service, so businesses should be careful about what information they share.
Sensitive data such as customer details, financial information, internal documents, or login credentials should never be entered into public AI tools.
To use ChatGPT safely in a business environment, organisations should define clear usage guidelines, limit access where appropriate, and consider secure, business-grade alternatives such as Microsoft Copilot, which operates within Microsoft 365 data controls.
What data should never be shared with AI tools?
Businesses should never share personal data, customer information, financial records, login credentials, internal documents, or commercially sensitive material with public AI tools.
Clear AI usage policies help staff understand acceptable use and reduce the risk of data breaches, regulatory violations, or accidental disclosure.
Do businesses need an AI usage policy?
Yes, businesses should have an AI usage policy to define how AI tools can be used safely and responsibly. This helps prevent misuse, data leakage, and inconsistent practices across teams.
An effective policy covers approved tools, restricted data, accountability, and staff responsibilities, supporting both security and compliance.
What should an AI acceptable use policy include?
A good AI policy is short and practical. It should cover:
- Approved tools: which AI tools are allowed.
- Data rules: what must never be entered, such as personal data, client confidential information and passwords.
- Checking outputs: AI results must be checked before they're used or sent.
- Disclosure: when to tell clients that AI was used.
- Accountability: who owns AI decisions.
- Reporting: how to report a mistake or data leak.
- Review: how often the policy is reviewed.
It should match your data protection and information security policies. ABCOM writes AI policies as part of the AI Readiness Sprint (Week 3).
Who is responsible for AI governance in a company?
AI governance is typically a shared responsibility between IT, leadership, and compliance teams.
While IT manages security and access controls, leadership remains accountable for how AI is used within the organisation.
Clear ownership ensures AI adoption aligns with business goals, legal requirements, and risk management practices.
Is AI compliant with GDPR in the UK?
AI tools can be used in a GDPR-compliant manner, but compliance depends on how they are implemented and governed.
Businesses remain responsible for protecting personal data, ensuring lawful processing, and maintaining transparency.
Using AI within controlled environments such as Microsoft 365, combined with access controls, data minimisation, and clear policies, helps organisations meet UK GDPR obligations.
Does using AI affect Cyber Essentials certification?
Using AI tools does not automatically impact Cyber Essentials certification, but poor implementation can introduce risks. AI usage must align with core Cyber Essentials controls such as access control, malware protection, secure configuration, and patch management.
Organisations should ensure AI tools are deployed securely and monitored as part of their wider cybersecurity posture.
Does the EU AI Act affect UK businesses?
It can. The EU AI Act applies to UK businesses whose AI systems or AI outputs are used in the EU, for example if you sell AI-powered services to EU customers.
Most UK SMEs that use everyday tools like Copilot internally will have few direct obligations. However, basic duties such as AI literacy for staff and transparency still apply to some uses. Deadlines for the stricter "high-risk" rules have been changing, so check the current position if you trade in the EU.
This is general information, not legal advice.
How are criminals using AI in cyber attacks?
AI helps criminals write convincing phishing emails with no spelling mistakes, impersonate suppliers, and clone voices for fake phone calls from a director asking for an urgent payment. Deepfake video calls are also growing.
The best defences are:
- MFA on every account
- a rule that payment or bank detail changes are always confirmed by calling a known number
- regular staff awareness training
- email security that checks for impersonation
ABCOM's cyber security services cover all of these.
Hear it in person
Our Managing Director, Yann Davies, spoke on AI adoption, risk and governance at Mid Sussex District Council's Exploring the Future of AI event. Read about the event, or see our other events and workshops.
Next step
Not sure where your business stands with AI?
Our four-week AI Readiness Sprint reviews your Microsoft 365 security, data and policies, then gives you a clear, prioritised plan for using AI safely. Price on request.
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