An Azure service that integrates speech processing into apps and services.
Hello Wiarda, Jonathan Felix,
Welcome to Microsoft Q&A and Thanks for reaching out,
Where does the AI processing happen?
For Microsoft Teams** Premium AI features** (like transcription, intelligent recap, summaries, and translations):
- AI does not run locally on your device or inside the Teams app
- AI processing happens in Microsoft’s cloud
What this means:
Your meeting audio/video is streamed securely over TLS
Data is processed by AI services hosted in Azure regions
Processing occurs in:
- Your tenant’s configured region, or
- A defined Data Zone (depending on your organization setup)
So, all AI workloads are cloud-based, not device-based.
What data is processed and how?
- During the meeting
To enable AI features, Microsoft processes:
- Audio (speech)
- Spoken text (after speech-to-text conversion)
- Metadata (timestamps, speaker labels, etc.)
This enables Live transcription, Real-time captions, Post-meeting summaries and insights
Security during processing:
- Data is encrypted in transit (TLS)
- Data is encrypted at rest in Microsoft infrastructure
- Processing happens in a secure, isolated environment
- After the meeting
The outputs generated by AI are stored within your organization’s Microsoft 365** environment**, including:
- Transcripts → Teams chat / OneDrive / SharePoint
- Meeting recordings → OneDrive / SharePoint
- AI summaries & recaps → Teams meeting artifacts
Access is strictly controlled by:
- Your university’s IT/admin policies
- User permissions and sharing settings
How Microsoft uses your data
Microsoft follows strict enterprise privacy principles:
What Microsoft does with your data:
Uses meeting data only to provide the requested AI features
- Transcription
- Summarization
- Translation
Keeps all data isolated within your tenant
What Microsoft does NOT do:
- Does NOT use your data to train AI models
- Does NOT use your data for advertising
- Does NOT share your data across customers or tenants
This applies to both Raw inputs (audio, text), Generated outputs (transcripts, summaries)
Microsoft personnel access
Microsoft employees do not have routine access to your data.
Access is only possible in rare cases such as:
- Troubleshooting issues
- Critical support incidents
Even then Access is strictly controlled, Fully logged and audited, Limited to authorized personnel only
Data location, control, and compliance
Your organization retains control over:
- Data residency / region
- Data retention policies
- Access permissions
- Whether AI features are enabled or restricted
Microsoft supports major compliance standards, including:
- GDPR
- ISO certifications
- HIPAA (where applicable)
Important considerations
Since AI processing is cloud-based Your meeting data leaves your local device during processing
However, it remains Encrypted, Secure, Bound to your organization’s tenant
If your university has strict policies, They may disable or limit these AI features
AI features in Teams Premium run entirely in Azure cloud, not locally
Data is securely transmitted, processed, and stored
All data remains within your organization’s Microsoft 365 tenant
Microsoft:
- Uses data only to provide the feature
- Does not train models on your data by default
Full control lies with your organization’s admin and compliance policies
Please refer this
• Understand Azure OpenAI Data Privacy – https://learn.microsoft.com/legal/cognitive-services/openai/data-privacy?tabs=azure-portal
• Azure Security best practices (encryption in transit & at rest) – https://learn.microsoft.com/azure/security/fundamentals/best-practices-and-patterns
I Hope this helps. Do let me know if you have any further queries.
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Thank you!