Document management in M365 – the cornerstone of this AI era
Document management. A word that often evokes a sigh. It sounds outdated, maybe even unnecessary, especially now that AI and Copilot promise to take care of everything for us. But that’s precisely why document management is more important than ever.
AI doesn’t create information out of thin air. It uses the company’s existing data and a large portion of that data consists of documents. If those documents are scattered, outdated, or unclear in terms of access rights, AI won’t help – it will only amplify the problem. A well-designed and implemented document management system is a prerequisite for AI to be truly useful.
The tip of the iceberg – visible and hidden document mass
Document repositories in organizations resemble icebergs: only a small part is visible, while beneath the surface lies a mass of files accumulated over decades. Documents are stored on network drives, in legacy SharePoint environments, in separate systems, and in cloud services, often without a clear management model.
In this iceberg-like situation, we face two risks:
- Users (and AI) cannot find the documents they need.
- Users (and AI) find outdated or incorrect information.
Discoverability and data freshness are not new challenges, but they are intensified by the rise of AI. Copilot might use outdated sources or generate content that users shouldn’t have access to. That’s why document management must be in order, both technically and practically.
Above the cloud line – SharePoint Online as the home for documents
M365-based document management means using SharePoint Online services as the storage environment for documents. It is divided into three main areas:
- OneDrive: The user’s personal storage location. Ideally nearly empty, since most documents should be accessible to others in the organization.
- Teams: The hub for active collaboration, where documents are worked on together.
- SharePoint Online sites: The final destination for documents, where they can be found, protected, and versioned.
Technically, documents in Teams and OneDrive are stored in SharePoint Online libraries, so the entire document management system is built on SharePoint, while only part of it is actually structured and managed.
A designated, well-designed SharePoint-based document management system offers:
- A unified structure and navigation
- Access rights management
- Version history and recovery options
- Improved discoverability through metadata
- Approval processes and automation (e.g., PowerAutomate)
- The ability to extend functionality via Azure
Security and AI – new dimensions of governance
Security is the cornerstone of document management. SharePoint Online provides access control models, sharing management, sensitivity labels, and retention policies. SharePoint Premium including Syntex, and Copilot features add further capabilities, such as:
- AI-based metadata population (Syntex, Copilot Knowledge Agent)
- OCR reading and PDF handling (SP Premium)
- Site and file archiving (SP Premium)
- Copilot access control (SP Premium, Copilot licensing)
Leveraging AI in document management requires careful planning. Copilot is not a search engine, it’s a data processor. Its use requires that documents are discoverable, up-to-date, and access-controlled. The soon-to-be-released Knowledge Agent will further support this aspect.
Why M365 and SharePoint Online?
M365 is not the only document management solution, but for many organizations, it’s the most natural one. The environment is familiar, licenses are often already in place, and expanding document management doesn’t necessarily incur additional costs. Moreover, the M365 ecosystem offers more value than the sum of its parts, provided its capabilities are fully utilized.
In organizations still using network drives or on-premise environments, moving to the cloud brings cost savings and improves data governance. SharePoint Online is not a ready-made system but a platform on which a scalable, secure, and user-friendly solution can be built to meet organizational needs.
When well-designed, a document management solution migrated to M365 cloud services supports productivity, risk management, and data accuracy. When discoverability, security, and lifecycle management are in place, users can utilize information effectively and safely in an environment that meets requirements for data handling, protection, and retention.
How can we help you?
Well-designed document management seamlessly integrates technical implementation, security, and metadata management, enabling intelligent processes, smooth collaboration, and responsible use of information across the organization. Contact us!
Author
Sanna Jackson