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Control 4.2: Copilot in Teams Meetings Governance — Portal Walkthrough

Step-by-step portal configuration for governing Copilot capabilities in Microsoft Teams meetings, including transcription enforcement, summarization governance, and action item management in financial services environments.

Prerequisites

  • Role: Teams Administrator, Compliance Administrator
  • License: Microsoft 365 E5 with Copilot add-on, Teams Premium (for advanced meeting controls)
  • Access: Microsoft Teams Admin Center, Microsoft 365 Admin Center

Steps

Step 1: Override the Teams Copilot Default Change (Critical)

Portal: Microsoft Teams Admin Center Path: Meetings > Meeting Policies

Effective March 2026, Microsoft changed the default Copilot Teams meeting policy from EnabledWithTranscript to Enabled. This step overrides that change for FSI compliance.

  1. Navigate to Teams Admin Center > Meetings > Meeting Policies.
  2. Select the meeting policy assigned to regulated users (e.g., "FSI-Regulated-Policy" or "Global").
  3. Locate the Copilot section within the policy settings.
  4. Verify the Copilot setting — if it shows "Enabled" (without transcript requirement), this must be changed.
  5. Set Copilot to "On with transcript" (corresponds to EnabledWithTranscript in PowerShell).
  6. Save the policy.
  7. Verify the change has propagated by checking the policy summary — the Copilot row should show "On with transcript."

Step 2: Configure Meeting Transcription Policy

Portal: Microsoft Teams Admin Center Path: Meetings > Meeting Policies > Recording and transcription

  1. Navigate to the Meeting policies section.
  2. Edit or create a meeting policy for Copilot-enabled users.
  3. Under Recording and transcription:
  4. Set Transcription to On (required for Copilot meeting features under EnabledWithTranscript)
  5. Set Meeting recording to On or per your firm's recording policy
  6. Set Recording expiration to align with retention requirements
  7. Assign the policy to the appropriate user groups.

Step 3: Configure Copilot Meeting Settings

Portal: Microsoft Teams Admin Center Path: Meetings > Meeting Policies > Copilot

  1. Under the Copilot section of the meeting policy:
  2. Set Copilot to "On with transcript" — this is the FSI-compliant configuration (EnabledWithTranscript)
  3. Do not use "On without transcript" for any user group with recordkeeping obligations
  4. For regulated meetings, "On with transcript" ensures that all Copilot-generated artifacts have a corresponding verbatim record
  5. Configure whether Copilot can be used during and/or after meetings.
  6. Set the default Copilot access for different meeting types (scheduled, ad hoc, channel meetings).

Step 4: Configure Sensitivity Labels for Meetings

Portal: Microsoft Purview portal Path: Solutions > Information protection > Labels

  1. Create or configure sensitivity labels for meeting types:
  2. Internal — Standard: Copilot enabled with transcript
  3. Internal — Confidential: Copilot enabled with transcript, recording restricted
  4. Client Meeting — Regulated: Copilot enabled, transcript and recording mandatory
  5. Material Nonpublic Information: Copilot disabled for MNPI meetings
  6. Publish the meeting labels to Copilot-licensed users.

Step 5: Configure Meeting Summary and Action Item Controls

Portal: Microsoft Teams Admin Center Path: Meetings > Meeting Policies > AI features

  1. Configure AI-generated meeting notes and summary settings:
  2. Enable or disable automatic meeting summaries
  3. Control who receives AI-generated action items
  4. Set summary distribution to meeting organizer and attendees only
  5. Configure recap availability (Intelligent Recap for Teams Premium).
  6. Set retention policies for meeting summaries and transcripts.

Step 6: Verify Policy Assignment

Portal: Microsoft Teams Admin Center Path: Users > Manage users

  1. Select a sample of users from regulated business units.
  2. For each user, verify the assigned Teams meeting policy shows "FSI-Regulated-Policy" (or the firm's named policy).
  3. Confirm the policy enforces "On with transcript" for Copilot.
  4. For users who should not have Copilot: confirm they have a restrictive meeting policy or no Copilot license.

FSI Recommendations

Setting Baseline Recommended Regulated
Copilot in meetings EnabledWithTranscript EnabledWithTranscript EnabledWithTranscript
Auto-transcription On On (mandatory for compliance) On (mandatory)
Auto-recording Optional On for scheduled meetings with clients On for all regulated activities
MNPI meeting Copilot Disabled Disabled Disabled
Meeting summary retention Default 3 years (FINRA/SEC) 7 years (FINRA/SEC extended)

Regulatory Alignment

  • SEC Rule 17a-4(b)(4) — EnabledWithTranscript ensures verbatim transcript preservation alongside AI-generated summaries, meeting the 3-year readily accessible retention requirement
  • FINRA Rule 3110 — Supports compliance with supervisory requirements for meeting documentation
  • FINRA Rule 4511 — Preserves the underlying record (transcript) that validates the AI-generated meeting artifacts
  • MiFID II — Supports meeting documentation requirements for firms with EU operations

Next Steps