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GDPR Compliance Risk

Microsoft Copilot is a US-based service subject to the CLOUD Act. EU organizations using this service risk non-compliance with GDPR data transfer requirements.

Microsoft Copilot logo

GDPR-Compliant Alternative to Microsoft Copilot

🇺🇸Microsoft · US-based · Subject to CLOUD Act

Microsoft Copilot is an AI-driven tool designed to assist users in generating and refining text-based content. It leverages advanced language models to provide suggestions, complete code, and offer insights for various writing tasks. Key features include its integration with Microsoft Office products, enabling users to enhance productivity directly within familiar applications. The tool is particularly useful for developers, writers, and professionals who require assistance in drafting documents, coding, or brainstorming ideas. As a product developed by Microsoft, a US-based company, Copilot operates under US data laws, including the CLOUD Act and FISA 702, which means user data is stored and processed in the United States. The pricing model for Microsoft Copilot follows a freemium structure, allowing users to access basic features at no cost, with premium options available for advanced functionalities.

Why You Need a GDPR-Compliant Alternative to Microsoft Copilot

Since the landmark Schrems II ruling in 2020, transferring personal data to US-based services like Microsoft Copilot has become a significant legal risk for EU organizations. The US CLOUD Act gives American authorities the power to access data held by US companies, regardless of where that data is physically stored — even if it's in an EU data center.

While the EU-US Data Privacy Framework (DPF) adopted in 2023 provides a new legal basis for transfers, privacy experts and legal scholars have raised concerns about its long-term viability. The framework could face the same fate as its predecessors (Safe Harbor and Privacy Shield), both of which were struck down by the Court of Justice of the EU.

For organizations that want to eliminate compliance risk entirely, switching to a European-based ai & language models is the most straightforward solution. Below are the best GDPR-compliant alternatives to Microsoft Copilot, all headquartered in Europe with data stored in EU data centers.

CLOUD Act Exposure

US authorities can access your data stored by Microsoft Copilot, even if servers are located in Europe.

GDPR Fine Risk

Non-compliant data transfers can result in fines up to 4% of annual global revenue under GDPR Article 83.

EU Alternative Available

1 GDPR-compliant European alternative available with full EU data residency.

1 GDPR-Compliant Alternative to Microsoft Copilot

European services with full GDPR compliance and EU data residency

Mistral AI logo

Mistral AI

🇫🇷

by Mistral AI

Leading European AI company. Open-weight models (Mistral 7B, Mixtral 8x7B, Mistral Large) competing with GPT-4. Strong focus on efficiency and open source. Le Chat interface for consumers.

GDPR CompliantEU-BasedOpen SourceEU-hosted
freemiumMigration:â—Źâ—Źâ—Ź30 minutes

Why switch?

  • Mistral AI is GDPR compliant, ensuring strict data protection in EU.
  • Data is stored in France, reducing concerns over US surveillance laws.
  • Mistral AI offers open-source models, allowing for customization and transparency.

Consider

  • Mistral AI lacks integration with Microsoft Office products, limiting usability.
  • Learning curve may be steep due to unfamiliar interface and features.
View DetailsCompareSwitch Guide
Visit Mistral AI

Quick GDPR Compliance Comparison

ServiceHQ LocationGDPR NativeEU Data CentersCLOUD Act FreePricing
🇺🇸Microsoft Copilot
United StatesNoPartialNofreemium
🇫🇷Mistral AIFRYesYesYesfreemium

Frequently Asked Questions

Is Microsoft Copilot GDPR compliant?

Microsoft Copilot is a US-based service operated by Microsoft. While it may have some GDPR compliance measures, as a US company it is subject to the CLOUD Act, which allows US authorities to access data stored by US companies regardless of where the data is physically located. This creates a fundamental conflict with GDPR requirements for data protection.

What are the GDPR risks of using Microsoft Copilot?

The main GDPR risks include: (1) Data transfers to the US may lack adequate protection since the Schrems II ruling invalidated Privacy Shield, (2) US authorities can demand access under the CLOUD Act, (3) Your organization may face GDPR fines up to 4% of annual revenue for non-compliant data transfers, and (4) User consent may not be sufficient to legitimize transfers given the systematic access by US authorities.

What are the best GDPR-compliant alternatives to Microsoft Copilot?

The top GDPR-compliant alternatives to Microsoft Copilot include Mistral AI. These European services store your data in EU data centers and are fully subject to GDPR protections.

How do I migrate from Microsoft Copilot to a GDPR-compliant alternative?

Most migrations involve three steps: (1) Export your data from Microsoft Copilot using their data export tools, (2) Create an account with your chosen EU alternative, and (3) Import your data into the new service. We provide detailed migration guides for each alternative to make the switch as smooth as possible.

Can EU companies legally use Microsoft Copilot?

Since the Schrems II ruling (2020), EU organizations face significant legal risk when using US cloud services like Microsoft Copilot. While the EU-US Data Privacy Framework (2023) provides a new legal basis, its long-term stability is uncertain. Many EU data protection authorities recommend using EU-based alternatives to avoid compliance risks entirely.

Other GDPR Alternatives in AI & Language Models

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Last updated: January 26, 2026