Data from documents processed within Copilot Chat by users that do not have a Microsoft 365 Copilot license are not collected or used for training Microsoft’s artificial intelligence models. This is covered by our documentation on Copilot Chat & the commitments & controls of Enterprise Data Protection:
- Enterprise data protection in Microsoft 365 Copilot and Microsoft 365 Copilot Chat
- Microsoft 365 Copilot Chat Privacy and Protections
File uploads in Microsoft 365 Copilot & Copilot Chat are simply copies made to OneDrive for Business to a special folder called “Microsoft Copilot Chat Files”.
Consequently, as OneDrive for Business stored data, not only do uploaded documents never leave the fully-encrypted boundaries of the organization’s Microsoft 365 cloud instance, these files are not used to train AI models & are also covered by the same privacy & data protections afforded to Copilot Chat conversations through Enterprise Data Protection.
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Kurt Shintaku's Blog 
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