Is Microsoft Copilot Revolutionizing Business Workflows? A Conversation On AI, Trust And Tech Adoption In The Channel

What happens when enterprise-grade AI meets real-world business needs?

In this episode of The Channel Angle, host Cass Cooper sits down with CRN Senior Editor Wade Millward and Phalanx Technology President Kelly Yeh. The three break down the promise and pitfalls of Microsoft Copilot, the competitive heat from Google Gemini, and how channel leaders can prepare for the rapidly evolving world of AI-driven workflows.

If you’ve been wondering whether Copilot is a gimmick or a game-changer, this conversation is for you.

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Microsoft Copilot: Where We Are And Where It’s Headed

Wade, who’s been covering Microsoft and cloud computing in CRN’s newsroom, set the stage for our discussion by outlining the tech giant’s full-force push into AI.

“Microsoft is really trying to lead in this era,” Wade said. “From product integrations to partner enablement, they’ve made major investments across the board. But,” he added, “you still need solution providers to make it work in practice.”

Located just outside Washington, D.C., Phalanx Technology has been a Microsoft partner for over two decades. But even with that experience, President Kelly Yeh is treading carefully when it comes to Copilot.

“We’re doing a limited rollout. Just me and my VP of services for now,” he shared. “Our goal is to identify where real workflow efficiencies exist. It’s not about jumping in blindly. It’s about figuring out what you want the output to look like before you can trust AI to generate it.”

Prompt Engineering Meets Data Discipline

The conversation quickly turned to trust. Not just in the technology itself, but in the data behind it.

“You have to clean your house before you invite AI to move in,” Kelly explained. “Copilot will digest whatever it’s allowed to access. That means outdated documents, duplicate PowerPoints, even archived Windows 95 files if they’re still sitting on the network.”

In other words, garbage in, garbage out.

Wade adds, “There’s a difference between public-facing tools like ChatGPT and enterprise tools like Copilot. The grounding and context matters. And in enterprise settings, accuracy isn’t just important; it’s mission critical.”

Kelly doubled down with a quick cybersecurity check: “Your Microsoft Security Score should be at least 80 before you even consider Copilot deployment. Most organizations are sitting in the 60s.”

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The Case For Controlled Rollouts

When I asked how Kelly talks to clients about Copilot adoption, he offered this: “It’s not about whether you trust your people. It’s about making sure your permissions are set right. Just because someone can ask for data doesn’t mean they should have access to it.”

That’s why at Phalanx, they separate “dirty” and “clean” data sets and only allow Copilot to pull from the clean one. “Otherwise,” he warned, “you risk serious breaches of internal policy and potentially even regulatory compliance.”

The Need For Policy

Wade raised another concern: the external use of AI. “There are already workarounds popping up where people use AI to bypass paywalls and internal protocols,” he said.

That’s why Kelly advises every client—no matter their industry—to start building an AI use policy today.

“If you don’t have one,” he said, “your competitors probably do.”

Microsoft Vs. Google: Which AI Tool Wins?

We couldn’t end the episode without talking about the difference between Microsoft Copilot and Google Gemini.

Wade explained it like this: “At first, it looked like companies would consolidate around one ecosystem. But in reality, many businesses run hybrid environments. So, now the question becomes: how interoperable are these AI tools?”

Kelly and I both agreed that this is where solution providers play a critical role. Whether you’re all-in on Microsoft, a legacy system user, or somewhere in between, AI won’t just plug-and-play without careful strategy.

AI: Nice To Have Or Need To Have?

The final and biggest question: Is AI a luxury or a business necessity?

“It’s a need to have,” Kelly answered without hesitation. “Because if you’re not thinking about it, someone else is. And if they’re using it to streamline operations or respond to clients faster, that’s a competitive edge.”

Wade agreed. “We’ve gone from slide rules to calculators to AI. It’s not a question of if; it’s when.”

Final Takeaways for Channel Leaders

This conversation wasn’t just about Microsoft. It was about what AI means for every part of the IT channel:

• AI won’t fix broken workflows, you need to know what you want before it can be delivered.
• Security and access management matter more than ever.
• Data hygiene is critical, don’t let outdated files become your AI’s source of truth.
• Adoption is inevitable, but strategy, policy, and training will determine success.

So, is Microsoft Copilot revolutionizing business workflows? The short answer: it can. But only if we do the groundwork first.