svg image
Healthcare Innovation

Is Microsoft Copilot HIPAA Compliant?

March 24, 2025
Is Microsoft Copilot HIPAA Compliant?

Microsoft Copilot shows great potential in general business settings, and does offer a HIPAA BAA for some components of their Copilot service. However, Copilot currently falls short in many important security and operational aspects when used with Protected Health Information (PHI) or Personally Identifiable Information (PII).

Many providers unknowingly compromise their patient's data by believing Microsoft Copilot is always safe for protected health information (PHI), not realizing that the fine print leaves their data exposed to breach and violations of HIPAA when used in common scenarios. One such example is the Copilot service occasionally passes data to their Bing service, which is not secure for PHI and exempted from the HIPAA BAA.

Large enterprises should be vigilant and ensure these settings are blocked; carefully and continuously reviewing all future service updates to ensure continued compliance. However, this is inefficient and not practical for all but the largest organizations.

Microsoft Copilot's Healthcare Compliance Challenges

When evaluating Microsoft Copilot for healthcare use, several important limitations emerge:

  • Complex Compliance Requirements: While Microsoft Copilot can technically be HIPAA compliant, implementation requires meeting specific conditions including Microsoft 365 E3/E5 licensing, configuring additional security settings, and understanding complex data handling requirements
  • High Cost: $360/user/year for Copilot on top of your existing M365 licenses
  • Limited Healthcare Specialization: Designed primarily for general business use rather than healthcare-specific workflows
  • Restrictive Implementation: Requires Microsoft 365 ecosystem adoption and specialized IT knowledge

These Microsoft Copilot healthcare limitations create significant hurdles for healthcare organizations, particularly smaller practices without dedicated IT resources or budget for enterprise-level software investments.

HIPAA Compliant (with proper configuration and an enterprise BAA):

  • Microsoft 365 Copilot (Only in enterprise M365 environments and only with specific features enabled)
  • Security Copilot (Built specifically for enterprise security teams)
  • Dynamics 365 Copilot (Only select features support compliance)
  • Power Platform Copilot (Only select features support compliance)

NOT HIPAA Compliant:

  • Copilot in Bing (Public-facing AI without BAA coverage)
  • Copilot mobile app (Consumer-grade experience, in most cases, not covered by BAA)
  • Copilot Pro (Personal use subscription, not designed for protected health information)
  • Copilot in Windows (Not covered by BAA, even in managed environments)

Be careful which Copilot you're using for your patient information

In contrast, BastionGPT was purpose-built as a healthcare-focused HIPAA-compliant AI solution with simplified compliance and implementation. This fundamental difference makes BastionGPT the superior choice for healthcare providers who need both regulatory compliance and specialized clinical capabilities.

BastionGPT is the Best HIPAA-Compliant AI for Medical Practices

Healthcare organizations require secure AI for medical notes that protects patient information while enhancing productivity. BastionGPT delivers comprehensive compliance features that address healthcare's regulatory requirements:

  • Streamlined HIPAA-compliant AI infrastructure with BAAs included in all plans
  • Will never introduce capabilities outside of those covered by the HIPAA BAA
  • PIPEDA compliance for Canadian healthcare providers
  • Australian Privacy Principles (APP) compliance
  • Global data centers (US, Canada, Australia) for data sovereignty
  • Data is encrypted and never used to train AI models
  • 30-day secure data retention policies
  • No minimum purchase requirements or enterprise licensing complexity

These robust security measures make BastionGPT the ideal AI with a BAA for healthcare applications, especially for practices seeking simplified compliance without enterprise-level IT resources.

How BastionGPT Compares to Copilot for Clinical Notes

When comparing Copilot vs BastionGPT specifically for clinical documentation AI capabilities, several critical differences emerge:

HIPAA Compliance

  • BastionGPT: Straightforward compliance with BAA included in all plans; designed specifically for healthcare privacy requirements
  • Microsoft Copilot: Possible but requires complex configuration, specialized IT knowledge, and enterprise-level licensing

Healthcare Specialization

  • BastionGPT: Purpose-built for clinical documentation with healthcare-specific prompts, templates, and capabilities
  • Microsoft Copilot: General business productivity tool without healthcare-specific features or clinical workflows

Document Processing

  • BastionGPT: Handles document uploads up to 200,000 words, with specialized medical terminology recognition
  • Microsoft Copilot: Limited to processing within Office apps, potential gaps in medical terminology understanding

Pricing & Accessibility

  • BastionGPT: Starting at $20/month with no minimum purchase requirement; accessible for individual practitioners and small practices
  • Microsoft Copilot: $360/user/year in addition to required base Microsoft license) with required HIPAA compliant enterprise configuration

AI Technology

  • BastionGPT: Leverages multiple AI models (GPT-4, Claude, Gemini) optimized for different healthcare documentation tasks
  • Microsoft Copilot: Limited model approach that may not address specialized healthcare documentation needs

Healthcare Features

  • BastionGPT: Extensive healthcare-specific capabilities including SOAP notes, treatment plans, referral letters, and patient education materials
  • Microsoft Copilot: General productivity focus without specialized clinical documentation features

These differences highlight why BastionGPT is the best Copilot alternative for healthcare and mental health professionals seeking to implement AI note-taking within a secure, accessible framework.

Conclusion: BastionGPT is the Superior AI for Healthcare

While Microsoft Copilot can technically be configured for HIPAA compliance in certain enterprise environments, its significant implementation barriers, high minimum investment requirements, and general-purpose design make it less optimal for many healthcare providers—especially smaller practices, individual practitioners, and organizations without extensive IT resources.

BastionGPT's purpose-built healthcare features, straightforward compliance infrastructure, and flexible implementation options delivers what healthcare providers truly need—a secure, compliant AI assistant that enhances clinical documentation while protecting patient information and supporting regulatory compliance.

For the thousands of healthcare organizations which have implemented BastionGPT's AI for healthcare documentation, it has significantly improved documentation quality, provider efficiency, and ultimately, patient care—all within reach for healthcare providers of any size.

Start a free 7-day trial of BastionGPT

If you have more questions or would like to connect – you can reach out at: