Study Finds Majority of Companies Struggle with Microsoft 365 Governance as AI Adoption Accelerates

A new survey conducted by cloud‑migration specialist ShareGate reveals that more than three‑quarters of organizations are encountering governance challenges within Microsoft 365, a problem the firm says is intensifying as artificial‑intelligence tools become more prevalent in the platform.

The research, highlighted in a recent Infosecurity Magazine report, examined a cross‑section of enterprises that rely on Microsoft 365 for collaboration, document storage, and email. While the study does not break down industry sectors, respondents consistently reported difficulties in enforcing policies, tracking data movement, and maintaining compliance when AI‑driven features such as Copilot and automated workflow generators are in use.

Microsoft 365 has become a central hub for many businesses, offering a suite of cloud‑based applications that integrate with a growing ecosystem of third‑party add‑ons. Governance—defined as the set of processes and controls that ensure data is used responsibly—has traditionally been managed through built‑in admin tools and organizational policies. The rapid rollout of AI capabilities, however, adds layers of complexity, allowing users to generate content, summarize documents, and automate tasks without clear audit trails.

ShareGate’s findings suggest that the current governance frameworks are not keeping pace with these technological shifts. More than 75% of surveyed firms indicated that existing controls are either insufficient or not consistently applied, leading to concerns over data leakage, regulatory non‑compliance, and shadow IT proliferation. The study points to a “governance crisis” that could expose organizations to heightened risk if left unaddressed.

Industry analysts note that the issue is not unique to Microsoft 365; similar governance gaps are emerging across other cloud services as AI integration accelerates. Experts recommend a multi‑pronged approach: revisiting policy definitions, investing in automated compliance monitoring, and training staff on the responsible use of AI tools. Vendors, including Microsoft, have begun to roll out enhanced audit logs and AI‑specific governance modules, but adoption remains uneven.

Looking ahead, the ShareGate study underscores the urgency for IT leaders to reassess their oversight strategies. As AI features become standard in productivity suites, organizations will need to balance innovation with robust controls to protect sensitive information and meet regulatory demands. Ongoing monitoring, periodic audits, and clear accountability structures are likely to become central components of any effective Microsoft 365 governance roadmap.