Phrase

Czech-founded AI translation management platform for global software and content teams

Microsoft Copilot

AI assistant embedded across Microsoft 365 apps

Phrase

Strong

20/25

Microsoft Copilot

Strong

20/25

Score Breakdown

DimensionPhraseMicrosoft Copilot

Data Residency

Where is your data stored and processed?

Phrase: Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

Microsoft Copilot: Microsoft offers data residency across multiple global regions including US, EU, UK, and Asia Pacific. Customers can select their data location and data stays within the Microsoft 365 compliance boundary.

4/5

Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

4/5

Microsoft offers data residency across multiple global regions including US, EU, UK, and Asia Pacific. Customers can select their data location and data stays within the Microsoft 365 compliance boundary.

Legal Jurisdiction

Which laws govern the company and your data?

Phrase: Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

Microsoft Copilot: Incorporated in Washington State, US. Subject to US laws including the CLOUD Act. Microsoft has challenged government data requests and offers EU Data Boundary commitments.

5/5

Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

3/5

Incorporated in Washington State, US. Subject to US laws including the CLOUD Act. Microsoft has challenged government data requests and offers EU Data Boundary commitments.

Data Retention & Training

Is your data used for model training?

Phrase: Customer translation memories and content explicitly not used for model training; configurable retention available.

Microsoft Copilot: Copilot interactions inherit Microsoft 365 retention policies. Administrators have granular control over data retention, deletion, and eDiscovery. Copilot prompts and responses are stored in Exchange Online.

4/5

Customer translation memories and content explicitly not used for model training; configurable retention available.

4/5

Copilot interactions inherit Microsoft 365 retention policies. Administrators have granular control over data retention, deletion, and eDiscovery. Copilot prompts and responses are stored in Exchange Online.

Certifications

ISO 27001, SOC 2, Cyber Essentials, etc.

Phrase: ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

Microsoft Copilot: One of the most extensively certified cloud platforms globally, holding SOC 1/2 Type II, ISO 27001, ISO 27018, ISO 27701, FedRAMP High, and dozens of additional certifications across regions and industries.

3/5

ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

5/5

One of the most extensively certified cloud platforms globally, holding SOC 1/2 Type II, ISO 27001, ISO 27018, ISO 27701, FedRAMP High, and dozens of additional certifications across regions and industries.

Regulatory Fit

Suitability for regulated industries and professional services

Phrase: Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

Microsoft Copilot: Supports a vast range of regulatory frameworks including GDPR, HIPAA, FedRAMP, FERPA, and many industry-specific requirements. Government cloud offerings available for public sector customers.

4/5

Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

4/5

Supports a vast range of regulatory frameworks including GDPR, HIPAA, FedRAMP, FERPA, and many industry-specific requirements. Government cloud offerings available for public sector customers.

Total Score

20/25

Best For

Phrase

Best for organisations requiring broad certification coverage (SOC 1 Type II, SOC 2 Type II, ISO 27001); privacy-conscious teams who need strong data retention controls.

Microsoft Copilot

Best for EU-headquartered organisations needing maximum data sovereignty; regulated industries (UOOU, CNIL); privacy-conscious teams who need strong data retention controls.

Detailed Comparison

Microsoft Copilot vs Phrase: Trust & Compliance Comparison

Microsoft Copilot (Microsoft, US) scores 20/25 overall with a Silver (Strong) trust badge. AI assistant embedded across Microsoft 365 apps. Phrase (Phrase, CZ) scores 20/25 with a Silver (Strong) trust badge. Czech-founded AI translation management platform for global software and content teams.

Dimension-by-Dimension Breakdown

#### Data Residency

Both score equally at 4/5.

●Microsoft Copilot (4/5): Microsoft offers data residency across multiple global regions including US, EU, UK, and Asia Pacific. Customers can select their data location and data stays within the Microsoft 365 compliance boundary.

●Phrase (4/5): Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

#### Legal Jurisdiction

Phrase leads with 5/5 vs 3/5.

●Microsoft Copilot (3/5): Incorporated in Washington State, US. Subject to US laws including the CLOUD Act. Microsoft has challenged government data requests and offers EU Data Boundary commitments.

●Phrase (5/5): Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

#### Data Retention & Training

Both score equally at 4/5.

●Microsoft Copilot (4/5): Copilot interactions inherit Microsoft 365 retention policies. Administrators have granular control over data retention, deletion, and eDiscovery. Copilot prompts and responses are stored in Exchange Online.

●Phrase (4/5): Customer translation memories and content explicitly not used for model training; configurable retention available.

#### Certifications

Microsoft Copilot leads with 5/5 vs 3/5.

●Microsoft Copilot (5/5): One of the most extensively certified cloud platforms globally, holding SOC 1/2 Type II, ISO 27001, ISO 27018, ISO 27701, FedRAMP High, and dozens of additional certifications across regions and industries.

●Phrase (3/5): ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

#### Regulatory Fit

Both score equally at 4/5.

●Microsoft Copilot (4/5): Supports a vast range of regulatory frameworks including GDPR, HIPAA, FedRAMP, FERPA, and many industry-specific requirements. Government cloud offerings available for public sector customers.

●Phrase (4/5): Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

Certifications at a Glance

Certification	Microsoft Copilot	Phrase
FedRAMP High	Yes	No
ISO 27001	Yes	Yes
ISO 27018	Yes	No
ISO 27701	Yes	No
SOC 1 Type II	Yes	No
SOC 2 Type II	Yes	No

Overall Verdict

Microsoft Copilot and Phrase are closely matched on trust and compliance, with scores of 20/25 and 20/25 respectively. The right choice depends on your specific regulatory requirements and existing technology stack.

Frequently Asked Questions

Which is better for EU compliance, Phrase or Microsoft Copilot?

Phrase has a TrustKit score of 20/25 while Microsoft Copilot scores 20/25. Both tools are currently rated equally across data residency, legal jurisdiction, data retention, certifications, and regulatory fit.

How do Phrase and Microsoft Copilot compare on data residency?

Phrase scores 4/5 for data residency (Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.), while Microsoft Copilot scores 4/5 (Microsoft offers data residency across multiple global regions including US, EU, UK, and Asia Pacific. Customers can select their data location and data stays within the Microsoft 365 compliance boundary.).

Are Phrase and Microsoft Copilot GDPR compliant?

Both tools are assessed across five compliance dimensions. Phrase has a regulatory fit score of 4/5 and Microsoft Copilot scores 4/5. Check the full comparison above for a detailed breakdown.

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