Key Findings
28% of tenants with full Copilot run three or more AI tools
57% of organizations use built-in Microsoft governance tools
77% of organizations experienced at least one Microsoft 365 governance incident
67% of organizations run two or more AI tools in their Microsoft 365 tenants
Only 1% of organizations use a purpose-built governance tool
35% of organizations hit an audit or compliance gap
36% of organizations use Gemini alongside Copilot
32% of organizations use Claude for Work alongside Copilot
22% of organizations say AI has taken more than a fifth of their IT budget
32% of teams that have fully deployed Copilot say AI has taken more than a fifth of their IT budget
3% of IT professionals name more budget as what would help most
34% of organizations delay or avoid a Microsoft 365 migration outright in the past 12 months due to compliance concerns, up from 20% in 2025
68% of organizations run hybrid cloud/on-premises Microsoft 365 environments
93% of organizations have Copilot in production in some form, up from 82% in 2025
Full Copilot deployment roughly doubled from 29% to 56%
4% of organizations have no governance at all
28% of organizations are fully in the cloud, up from 22% last year
65% of teams learn about governance problems only after the fact through quarterly audits or user complaints
63% of organizations describe their governance as operationalized or better
38% of organizations leave former employees or guests with access they should have lost
26% of organizations have sensitive content reach the wrong people
54% of organizations use ChatGPT Enterprise alongside Copilot
38% of organizations rely on manual or internal governance policies