THE TOP 5 SECURITY TIPS FOR USING AI WITH SENSITIVE DATA IN EXCEL

Integrating AI features (like Copilot, natural language processing, or third-party add-ins) with sensitive data in Excel creates powerful analysis but introduces significant risks. Because AI often relies on external servers for processing, you must be extremely careful about what information you share.

The Top 5 Security Tips for Using AI with Sensitive Data in Excel

Here are the top five security tips for protecting sensitive and confidential data in your Excel workbooks when using AI:

• ANONYMIZE OR REDACT SENSITIVE DATA: Never paste raw Personally Identifiable Information (PII) or highly confidential company details (like full names, account numbers, or proprietary formulas) into a public AI tool. Before using a prompt, copy only the structure (column headers) or anonymize the data (replace names with "User 1," and dollar amounts with fake numbers). Only feed the AI the minimum amount of data required to generate the formula or insight you need.

  
  

• USE ONLY COMPANY-AUTHORIZED AI SERVICES: Avoid using free, public AI chatbots (like the public versions of ChatGPT or Gemini) for any work involving company data. Instead, use enterprise-level services like Microsoft 365 Copilot (which operates within Microsoft's security and compliance boundaries) or other internal, secure platforms. Enterprise subscriptions often guarantee that your data is not used to train their AI models.

  
  

• APPLY SENSITIVITY LABELS AND ACCESS CONTROLS: Ensure your Excel workbooks are protected with Sensitivity Labels (available in Microsoft 365) that automatically encrypt and restrict sharing based on the data's classification (e.g., "Confidential" or "Highly Restricted"). This ensures that even if an AI tool were to improperly access the data, only authorized users with the correct credentials could actually view it.

  
  

• SEGREGATE DATA INTO PROTECTED AND UNPROTECTED SHEETS: Structure your workbook to isolate the sensitive data. Place all confidential data (e.g., source financial figures, customer names) on a Protected Sheet with password and cell lock restrictions. Create a separate, Redacted Sheet with only the non-sensitive columns needed for the AI interaction. This minimizes the surface area of data exposed to the AI tool.

  
  

• VERIFY AND AUDIT ALL AI-GENERATED OUTPUTS: AI can make errors or "hallucinate" results. Always double-check AI-generated formulas, code, or insights against manual calculations before applying them to your sensitive workbook. If you use a third-party AI add-in, check its developer's privacy policy to understand exactly how your data is handled, stored, and if it is ever transmitted to an external server.

The golden rule for using AI with sensitive data in Excel is to assume that anything you paste into a public tool becomes public. By prioritizing anonymization, using secure enterprise platforms, and layering strict access controls, you can responsibly leverage AI's power while maintaining the security and integrity of your sensitive information.