Comparison

Private AI vs Microsoft 365 Copilot

Copilot is built into the Microsoft 365 apps your team may already use. A private system runs on hardware you own. Here's what each does with your data, from Microsoft's own documentation.

Last updated October 2026

What Microsoft documents about Copilot

Microsoft's privacy documentation for Copilot says prompts, responses and data accessed through Microsoft Graph aren't used to train foundation models, and that Copilot only surfaces organizational data that each user has at least view permission for. Prompts and responses are processed and stored in line with your organization's other Microsoft 365 content.

Where processing happens

The same documentation says Copilot's model calls are routed to nearby data centers but can go to other regions when capacity is needed, and that customers outside the EU may have queries processed in the US, the EU or other regions. When web search is used, Copilot sends a search query to Bing.

Permissions matter either way

Because Copilot can reach whatever each user can open in Microsoft 365, Microsoft recommends using its permission models to make sure the right people have the right access. A private system needs the same care: we'll talk through which documents it should read and who should see what.

When Copilot is the better choice

  • Your work already lives in Microsoft 365 and you want AI inside Word, Outlook and Teams.
  • You're comfortable with Microsoft's terms for your content.
  • You don't want any hardware on site.

When private AI fits better

  • You want prompts and documents processed on hardware you own rather than in a provider's data centers.
  • You want AI over a specific set of documents, such as policies, templates or past work, set up for that job.
  • You'd like a person to set it up, show your team and keep it maintained.

At a glance

Microsoft 365 CopilotNexoGrid private AI
Where prompts are processedMicrosoft data centers, per MicrosoftOn hardware you own
Training on your dataNot used for foundation models, per MicrosoftNo AI provider receives your data
What it can readWhat each user can open in Microsoft 365The documents you choose to connect
Works inside Office appsYesNo; it's its own private assistant
How we compare

We sell managed private AI, so read this with that in mind. Facts about other products come from their own documentation, linked below, as we read it in October 2026. Products change; check the current documentation before you decide.

Sources

Related

FAQ

Questions, answered plainly.

Anything else? Ask us on a call; that's what it's for.

Can we use both?

Yes. Some teams use Copilot for everyday office work and a private system for the documents they'd rather keep on their own hardware. We'll talk through where the line sits for you.

Does my data leave my machine with NexoGrid?

Your prompts and documents are processed on hardware you own, not sent to a public AI service. The system uses the internet for software and model updates, and for remote management if you choose it. We'll show you what connects and why, and we don't look at your documents or chats.

Do you have compliance certifications?

We don't make compliance certifications. If you have regulatory requirements, raise them on a call and we'll tell you plainly what we can and can't help with.

Do you offer an uptime SLA?

Your system runs on hardware you own, so we don't offer an uptime SLA. Cloud hosting is available when it fits your needs.

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