UK M&A migrations heighten Microsoft 365 security & AI risks

UK organisations are encountering rising security and governance challenges as mergers and acquisitions (M&A) drive a surge in Microsoft 365 migrations, especially with the rapid rollout of AI tools such as Copilot, according to new research by ShareGate.

M&A migrations

New data reveals that pressures to consolidate digital environments swiftly during M&A activity have created conditions in which security and compliance risks are prevalent throughout the migration process. Among surveyed UK IT professionals, 43% stated that security and compliance were their biggest challenges when merging Microsoft 365 environments.

ShareGate's findings highlight that 44% of UK IT respondents have already been involved in an M&A-related migration, while a further 33% plan to complete one within two years.

AI deployment concerns

The rollout of AI tools, including Microsoft Copilot, adds complexity to an already challenging landscape. Most UK businesses surveyed have piloted (37%), partially deployed (20%), or fully deployed (26%) Copilot. Yet 38% of IT professionals indicated a lack of expertise in governance of AI tools, while 55% expressed concerns about security and access management during these rollouts.

The research found that if permissions and governance frameworks are weak, tools like Copilot can surface sensitive information, further increasing overall data security vulnerability.

Governance gaps

Organisations are primarily relying on built-in Microsoft tools (51%) or internal manual processes (42%) to manage governance and security on Microsoft 365, with only a small proportion implementing third-party solutions. Seven percent admitted to not addressing governance and security issues at all.

The complexity in post-migration governance, particularly when multiple Microsoft 365 environments are merged, can be underestimated and often persists long after deals are finalised.

"Increased M&A activity, the evolving role of IT leaders as business decision makers, and the rise of AI adoption, necessitates the desire to migrate technology at an unprecedented speed. Unfortunately, this often comes at the cost of security and visibility," said Richard Harbridge, Microsoft MVP and Technology & Ecosystem Strategist, ShareGate.

Changing IT leadership

The study also found a shift in the role of IT teams in M&A migrations. IT directors and managers now lead 80% of migration projects during such activity and influence 86% of migration strategies. This change suggests that IT leaders are becoming increasingly central to business-critical decision making during enterprise transformations.

Survey results also indicate that falling interest rates and favourable investment conditions are expected to sustain the rise in UK M&A transactions, with further growth anticipated in response to economic developments.

"Organisations tend to underestimate the level of complexity in post-migration governance. This is particularly true when merging multiple Microsoft 365 environments. Long-term success shouldn't be seen as completing the migration; it's ensuring ongoing control, compliance, and scalability once the integration is done," said Harbridge.