Microsoft 365 governance incidents rise amid AI overconfidence

A significant majority of global organizations, an estimated 77%, encountered at least one Microsoft 365 governance incident in the past year. This surge in issues is partly attributed to an overconfidence in existing AI controls, which has introduced new and unforeseen risks, according to a report by Infosecurity Magazine.

ShareGate's second annual State of Microsoft 365 report, based on surveys of nearly 1800 IT professionals, revealed that common incidents include former employees retaining access (38%), audit or compliance gaps (35%), and sensitive data reaching unintended recipients (26%). The report highlights poor visibility, over-reliance on current governance, and a gap in AI governance skills as primary causes.

The rapid adoption of AI tools, with Microsoft Copilot deployments doubling to 56% of organizations, has exacerbated these risks. Despite 93% of organizations believing their governance frameworks are AI-ready, 29% have already experienced AI surfacing sensitive internal data. A lack of AI governance expertise is a top concern for 37% of respondents. IT professionals indicate that better controls for AI agents are crucial for addressing these challenges, cited by 34% as the most needed improvement.

Source: Infosecurity Magazine