Microsoft 365 Governance as a Blueprint for AI Readiness

Jul 07, 2025

As we enter 2025, Microsoft 365 governance is undergoing a significant transformation driven by the rapid adoption of AI technologies like Copilot and AI agents. During a recent episode of “Guardians of M365 Governance,” industry experts discussed how traditional governance approaches are evolving to meet new challenges and opportunities in the AI-powered workplace

The New Governance Imperative

Michael Pisarek, CEO of Orchestry, highlighted three key governance challenges organizations face as they prepare for AI adoption in our video with MVP Christian Buckley, MVP Joy Apple and me:

Content Quality and Management The fundamental issue is that “if you’ve got a bunch of crap content, Copilot is just going to give you back a bunch of crap.” Organizations struggle with:

Massive amounts of outdated content
Multiple versions of documents scattered across sites
Limited resources to manually clean up and organize content
Difficulty identifying relevant vs. irrelevant information

Security and Permissions SharePoint’s flexible sharing capabilities can create complex permission scenarios:

Broken inheritance chains
Excessive direct permissions
Untracked sharing links
Guest access management
Multiple permission paths (direct, groups, Azure AD)

User Adoption and ROI With Copilot licenses at $30/user/month, organizations need to:

Demonstrate clear business value
Track usage patterns
Measure productivity gains
Justify the investment

The Rise of AI Agents

A significant development in 2025 is the emergence of AI agents within Microsoft 365. These agents can be:

Created within SharePoint sites
Scoped to specific content sets
Developed by third parties
Deployed through marketplaces

This brings new governance considerations:

Who can create and deploy agents?
How to control agent access and permissions?
Managing consumption-based costs
Monitoring agent activities and impact

The Shift to Pay-as-you-go Models

Ragnar Heil, Microsoft MVP, emphasized how licensing models are evolving:

Moving from fixed per-user pricing to consumption-based models
Need for cost control mechanisms
Importance of usage monitoring
Risk of unexpected costs from widespread agent adoption

Automated Governance Solutions

The experts agreed that successful governance requires automation. Key aspects include:

Lifecycle Management

Automatic archival of inactive content
Regular permission reviews
Version control
Guest access cleanup

Owner Empowerment

Simplified dashboard views
Activity feeds
Action recommendations
Regular review prompts

Intelligent Automation

AI-powered cleanup recommendations
Automated policy enforcement
Pattern detection
Anomaly alerts

Best Practices for Modern Governance

Empower Content Owners

Provide clear visibility into their digital workspace
Enable easy permission management
Automate routine maintenance tasks
Regular review prompts

Implement Strong Provisioning

Standardized templates
Built-in lifecycle policies
Automated security controls
Clear ownership assignment

Monitor and Adapt

Track usage patterns
Measure adoption metrics
Analyze cost implications
Adjust policies as needed

Looking Ahead

The future of Microsoft 365 governance will likely include:

AI-Powered Automation

Intelligent agents managing routine tasks
Automated policy enforcement
Pattern-based recommendations
Natural language interfaces

Enhanced User Experiences

Voice-based interactions
Simplified management interfaces
Contextual recommendations
Proactive notifications

Cost Management

Granular usage tracking
Automated optimization
Predictive analytics
ROI measurement

Conclusion

As organizations embrace AI technologies within Microsoft 365, governance becomes more critical than ever. Success requires a balanced approach that combines:

Strong foundational policies
Automated enforcement
User empowerment
Continuous monitoring and adaptation

The key is making governance invisible to end users while ensuring organizational compliance and security. As Michael Pisarek noted, “It has to provide information that’s both useful and actionable.” By leveraging new tools and approaches, organizations can create a governance framework that enables innovation while maintaining control.

The future of Microsoft 365 governance is evolving rapidly, and organizations that adapt their approaches to incorporate AI capabilities while maintaining strong controls will be best positioned for success in this new era

You can also listen to this Episode as a Podcast in your favorite Player and Podcatcher – or just jump to Spotify