Claude AI
Cowork isn’t just a chatbot, it’s an agent that can autonomously execute multi-step workflows including file organization, document generation, research synthesis, and scheduled recurring tasks, all running locally on user machines with the same permissions as the logged-in user. That’s the core danger: it doesn’t have its own restricted identity, it has yours.
A few specific failure modes:
What “properly set up” actually means
Information from Anthropic’s own guidance and enterprise security write-ups, a defensible Cowork setup looks like:

Why Claude in Microsoft is dangerous without sensitivity labels configured
The mechanism is Claude’s Microsoft 365 connector uses delegated permissions as it operates as the signed-in user and can see whatever that user can see in Outlook/SharePoint/OneDrive/Teams. That’s normally described as a safety feature (it can only access what that specific user already has access to; your existing SharePoint permissions, sensitivity labels, and folder-level sharing settings are all respected), but notice the load-bearing word there: respected. It respects labels that exist. If sensitivity labelling isn’t set up in your tenant, there’s nothing for it to respect.
The critical distinction Microsoft itself draws in its own security whitepaper: sensitivity labels block Copilot access when they’re configured with Microsoft Information Protection (MIP) encryption that restricts the label’s usage rights to specific users or groups, and more importantly, labels with MIP encryption prevent Copilot from summarising a document’s content for users who lack the label’s usage rights even if the user has access to the SharePoint site hosting the document. That’s the actual control layer. Without it, access = visibility, full stop.
So without sensitivity labels in place, and with PII already sitting unlabelled in SharePoint:
Source: https://wonderingaboutai.substack.com/p/is-claude-cowork-safe
