Microsoft 365 Copilot for Legal Teams: A Setup Guide

Microsoft 365 Copilot is changing how legal teams draft, review, and collaborate across Word, Outlook, Teams, SharePoint, and Power Automate. This guide gives attorneys and legal operations leaders a practical overview of what Copilot is, how to set it up securely in your tenant, and where to start for fast, compliant wins. You’ll also walk through a hands-on tutorial to automate client intake—end-to-end—using Copilot with Power Automate and SharePoint.

Table of Contents

• What Microsoft 365 Copilot Is—and Why it Matters for Law Firms
• Licensing, Requirements, and Tenant Readiness
• Security and Compliance Baseline to Confirm First
• Step-by-Step Setup: Turning On and Configuring Copilot
• Connect Your Legal Content the Right Way
• Hands-On Tutorial: Automate Client Intake with Copilot and Power Automate
• Governance, Prompting, and Usage Guardrails for Attorneys
• First-Week Playbook: Quick Wins in Word, Outlook, and Teams
• Measuring Success and Iterating
• Conclusion and Next Steps

What Microsoft 365 Copilot Is—and Why it Matters for Law Firms

Microsoft 365 Copilot is an AI assistant embedded in the tools you already use—Word, Excel, PowerPoint, Outlook, Teams, SharePoint, and Power Automate. It uses your organization’s Microsoft 365 data (subject to your permissions) to help you draft, summarize, analyze, and automate, all within your existing security and compliance framework.

For legal professionals, the value is immediate: faster drafting with citations, cleaner email and meeting summaries, structured matter files, and automations that reduce administrative time. Copilot respects the permissions model you’ve already configured in Microsoft 365; it does not grant access to content users can’t already access.

Copilot Surface	What It Does	Practical Legal Use Cases
Word	Drafts, revises, summarizes, and styles documents from prompts and files.	First-draft engagement letters, discovery requests, NDAs; summarize depositions.
Outlook	Summarizes threads, proposes replies, and extracts action items.	Faster client communications; turn email chains into tasks and deadlines.
Teams	Meeting summaries, action items, decisions, and follow-up prompts.	Client update calls, case strategy sessions, internal docket meetings.
SharePoint/OneDrive	Finds and synthesizes content you can access; drafts from files.	Context-aware drafting using prior filings, templates, and playbooks.
Power Automate	Builds flows from natural language; suggests automations.	Client intake routing, matter file creation, alerts, and approval workflows.

Licensing, Requirements, and Tenant Readiness

Before enabling Copilot, confirm licensing and technical prerequisites to avoid deployment friction.

Licensing

• A base Microsoft 365 plan (e.g., Business Standard, Business Premium, E3, or E5).
• Copilot for Microsoft 365 license for each user who needs access.

Admin Roles

• Global Admin or Billing Admin to purchase and assign licenses.
• SharePoint/Teams/Exchange Admins for content structure and governance.
• Security/Compliance Admin for DLP, sensitivity labels, and auditing.

Client/Apps

• Current Office desktop apps or web apps (signed in with your work account).
• Teams app updated; meeting transcription enabled for summaries if allowed by policy.

Security and Compliance Baseline to Confirm First

Copilot works within your existing security model. That makes your data hygiene, permissions, and labeling strategy the most important step in a safe rollout.

• Enforce multifactor authentication and Conditional Access for all users.
• Enable Microsoft Purview sensitivity labels for client/matter confidentiality and ethical walls.
• Use Data Loss Prevention (DLP) policies for regulated data (PII, PHI, financials).
• Implement retention and records policies appropriate to your jurisdictions.
• Review sharing and guest access policies in SharePoint/Teams; block oversharing by default.
• Audit access to high-sensitivity sites; remove legacy “Everyone”/“Company” access where not required.

Best practice: Clean your data before you scale Copilot. Conduct a permission and content review of matter sites, archive or lock down old matters, and apply sensitivity labels. Copilot can only surface what users are already permitted to view—so strengthen your permissions before you accelerate visibility.

Step-by-Step Setup: Turning On and Configuring Copilot

Use this sequence to enable Copilot with minimal disruption:

1. Purchase the Copilot for Microsoft 365 licenses for your tenant.
2. In the Microsoft 365 admin center, assign Copilot licenses to a pilot group of users (e.g., attorneys from litigation, corporate, and intake teams).
3. Verify each user can sign in to Office web/desktop apps and Teams with their work account.
4. Update Office desktop apps to the latest version; confirm the Copilot icon appears in Word, Outlook, and PowerPoint.
5. Confirm Teams meeting policies permit transcription if you want AI-generated meeting summaries.
6. Validate SharePoint/OneDrive permissions on key libraries (templates, active matters) and apply sensitivity labels.
7. Communicate usage guidelines and prompt examples; schedule short enablement sessions.

Step	Admin Role	Tool	Outcome
Assign licenses	Global/Billing Admin	Microsoft 365 Admin Center	Pilot users have Copilot enabled
Update apps	Endpoint/IT Admin	Office Update Policies	Copilot icon available in apps
Set meeting policy	Teams Admin	Teams Admin Center	Transcripts allowed for summaries (if approved)
Secure libraries	SharePoint/Compliance Admin	SharePoint Admin / Purview	Permissions and labels applied to matters
Train users	Change Manager	Internal comms + quick guides	Adoption with guardrails

Connect Your Legal Content the Right Way

Copilot delivers the most value when your firm’s knowledge is organized and secured. Focus on a consistent structure for client/matter sites, avoid personal silos, and apply labels.

Recommended structure

• One SharePoint site per client (or per practice group) with a library per matter.
• Teams channel per matter linked to the matter library for collaboration.
• Templates library for standard documents, clauses, and playbooks.
• Sensitivity labels: Public, Internal, Confidential-Client, Highly Confidential (Ethical Wall).

Client (SharePoint site) → Matter Library (folders: Pleadings, Discovery, Research, Correspondence) → Teams Channel (private, if needed) → Permissions (least privilege) → Sensitivity Label (e.g., Confidential-Client).

As you roll out Copilot, prioritize moving high-value templates, prior filings, and model documents into labeled, permissioned libraries. This ensures better grounded drafting and safer summarization.

Hands-On Tutorial: Automate Client Intake with Copilot and Power Automate

This step-by-step tutorial shows how to create a simple intake pipeline using Copilot in Power Automate, Microsoft Forms, SharePoint, and Teams. The result: new intake submissions are captured, routed for conflicts review, organized into a matter folder with the right label, and announced to the team.

What you will build

• A Microsoft Form for prospective client/matter details.
• A SharePoint list to store intake data.
• A Power Automate flow created with Copilot to route submissions.
• Automatic creation of a labeled matter folder and a Teams post.

Prerequisites

• Copilot license for the user building the flow.
• A SharePoint site for “Intake” with a list called “Client Intakes.”
• A Teams channel (e.g., “Intake-Review”) for notifications.
• Sensitivity labels configured in Purview (e.g., Confidential-Client).

Step 1: Create the intake form

1. Open Microsoft Forms and create “New Client Intake.”
2. Add fields: Client Name, Contact Email, Matter Type (choice), Jurisdiction, Conflict Parties, Brief Description, Urgency.
3. Set “Record name” as the title and require Contact Email.

Step 2: Prepare SharePoint list columns

1. In your “Intake” site, open the “Client Intakes” list.
2. Add columns matching the form fields (text/choice types as appropriate).
3. Enable versioning for auditing.

Step 3: Use Copilot to draft your Power Automate flow

1. Open Power Automate and select “Create.” Choose “Process” and look for “Describe it to design” (Copilot).
2. In the Copilot box, describe your flow:

When a new response is submitted to the Microsoft Form named “New Client Intake,” record all fields into the SharePoint list “Client Intakes.” If Urgency is “High,” post a message in the Teams channel “Intake-Review” mentioning the @Intake Team. Create a new folder in the SharePoint library “Matters” named “ClientName – [MatterType] – [Date]” and apply the sensitivity label “Confidential-Client.” Include a subfolder named “Correspondence.” Finally, create an approval request for “Conflicts Check” assigned to the “Conflicts Reviewers” group with a link to the list item and the new folder.

3. Copilot will generate a draft flow. Review triggers/actions and confirm the correct Form, List, Library, Team, and Label.
4. Add any missing dynamic content mappings (e.g., Client Name into the folder name).

Step 4: Add a templated intake summary (optional)

1. In your Matters library, store a Word template “Intake Summary.dotx.”
2. In the flow, add an action “Populate a Microsoft Word template,” map fields, and save the document into the new matter folder.
3. Have the flow post a link to the summary in the Teams notification.

Step 5: Test and refine

1. Submit a test response to the Form using sample data.
2. Confirm the SharePoint list item is created, the matter folder appears with the sensitivity label, the Teams message posts, and the approval routes correctly.
3. Iterate your Copilot prompt to refine naming conventions, channel mentions, or approval logic (e.g., route by Matter Type or Jurisdiction).

Operational tips

• Use sensitivity labels that enforce encryption and limit sharing on the matter folder.
• Restrict who can create new matters; consider a separate approval for engagement letters.
• Log key timestamps (submitted, approved, assigned) for KPI reporting.

Governance reminder: Keep client intake data out of personal OneDrive. Store all matter artifacts in SharePoint sites with labels and least-privilege access.

Governance, Prompting, and Usage Guardrails for Attorneys

Copilot accelerates work but still requires professional oversight. Establish firmwide guidelines that protect client information and align with ethical obligations.

Prompting standards

• Always specify role, audience, jurisdiction, and objective: “You are drafting for a New York commercial litigation matter; audience is opposing counsel; tone is neutral and concise.”
• Instruct Copilot to cite sources: “Show references to firm documents and links you used.”
• Provide context: paste or attach the key file(s) from SharePoint; avoid using email fragments alone for substantive analysis.
• Use iterative prompts: review, redline, then ask for targeted revisions (e.g., “tighten Section 2; remove adjectives; cite rule 11 framework”).

Ethical and privacy guardrails

• Never rely solely on AI outputs; maintain human-in-the-loop review.
• Do not paste client secrets into unmanaged devices or personal accounts.
• Apply sensitivity labels to all client documents and require MFA for access.
• Document your review process, especially for court filings and opinions.

First-Week Playbook: Quick Wins in Word, Outlook, and Teams

Word

• Draft from a template: “Draft a first-pass NDA using our model in the Templates library. Limit to 4 pages. Insert bracketed placeholders for party names.”
• Summarize long documents: “Summarize this 70-page supply agreement focusing on indemnity, limitation of liability, and termination triggers. Include clause citations.”

Outlook

• Thread digest: “Summarize this email thread, list commitments by sender, and propose a two-paragraph reply confirming next steps.”
• Action extraction: “Extract deadlines and tasks from the last 30 emails tagged ‘Matter-1024’ and format them for Planner.”

Teams

• Meeting recap: “Summarize key decisions, risks, and action items from today’s case strategy meeting, with owners and due dates.”
• Matter catch-up: “What are the latest documents and messages related to ‘Rosemont v. Dale’ I have access to? Create a brief status.”

Measuring Success and Iterating

To turn early wins into lasting value, measure outcomes and refine workflows.

• Time saved: track drafting and intake cycle times before/after Copilot.
• Adoption: monitor usage by practice area; share prompt libraries for repeatable tasks.
• Quality: measure redline volume on AI-first drafts; aim for steady improvement.
• Risk reduction: audit permissions and label coverage quarterly; reduce oversharing incidents.
• Automation ROI: count manual steps eliminated per workflow (intake, engagement letters, matter open/close).

Conclusion and Next Steps

Microsoft 365 Copilot can safely accelerate legal work when paired with sound governance and a clear rollout plan. Start with licensing and security baselines, organize your content, and pilot targeted workflows—like client intake—to demonstrate measurable value. Train attorneys on effective prompting and keep a human in the loop for quality and ethics. With the right foundation, your firm can deliver faster, more consistent outcomes while reducing administrative burden.

Want expert guidance on bringing Microsoft CoPilot into your firm’s legal workflows? Reach out to A.I. Solutions today for tailored support and training.