Artificial intelligence is rapidly transforming how businesses use and manage data. While AI brings enormous opportunities to increase efficiency and improve decision-making, it also introduces new risks that many companies are not fully prepared to handle.

Without a clear framework to control data access, usage, and protection, organizations open themselves up to unnecessary risk.

AI increases data-related risks

AI tools rely on large volumes of data: emails, documents, customer records, and financial information. Without proper safeguards, this data can be leaked, exposed, misused, overshared or used in ways that are not compliant with regulations.

For SMBs, the impact can be significant, from data breaches and reputational damage to operational downtime and costly fines. As data flows increase, governance becomes critical.

Regulations Are Evolving, specifically in la Belle Province

In Quebec, businesses must comply with Law 25, which adds new responsibilities around privacy and introduces significant penalties for companies that don’t follow the rules. For SMBs, adopting proper governance and security tools is no longer optional, it is essential for maintaining both compliance and customer trust.

Fragmented tools create unnecessary risk

Many SMBs struggle with disconnected systems: security tools, cloud platforms, collaboration software, and AI applications that don’t work together. This makes it difficult to maintain visibility into:

• Who has access to data
• Where data is stored
• How it is protected

The result is security gaps, inefficiencies, and governance that is hard to sustain over time.

Why data governance matters

Data governance is all about setting the rules for how information is accessed, used, stored, and secured. Strong governance helps businesses innovate with confidence while reducing both compliance and operational risks.

For SMBs in Quebec, good governance also means staying aligned with evolving privacy laws and strengthening relationships with customers and partners who expect responsible handling of their information.

How SMBs can get started

Microsoft research shows that 58% of organizations are concerned about employees using AI without approval, and 93% worry about the use of AI tools that haven't been approved by the business, also called “shadow AI”.

To prepare for AI responsibly, SMBs should focus on four key steps:

1. Know Your Data
   Understand what data you have, classify it, and assess its risks.
2. Govern Your Data
   Put consistent, automated rules in place to manage data throughout its lifecycle.
3. Protect Your Data
   Use modern security tools to defend against leaks, breaches, and unauthorized access.
4. Prevent Data Loss
   Put controls in place to stop accidental or intentional sharing of sensitive information.

Why Integrated Tools Like Microsoft 365 and Copilot Matter

One of the biggest challenges for SMBs is adding new technology without overcomplicating their environment. That’s why many organizations choose solutions that integrate seamlessly with tools they already use.

Copilot for Microsoft 365 does exactly that. It works inside Outlook, Teams, Word, Excel, and other familiar apps—while respecting your company’s existing security and governance setup. Since it’s connected to Microsoft Graph, it understands your work context and automatically applies your organization’s data protection policies.

Conclusion

AI can be a powerful growth driver for SMBs but only when data is properly secured and governed. By taking a proactive approach to data governance, Quebec businesses can reduce risk, strengthen trust, and confidently adopt AI-driven innovation.