GDPR Compliance Showdown: A Side-by-Side Comparison of Microsoft Copilot, ChatGPT, Claude & Gemini

Is Microsoft Copilot GDPR compliant? Does ChatGPT store data in the EU or UK? How do Claude and Gemini measure up for enterprise data privacy?

As enterprises across the EU and UK increasingly adopt generative AI solutions, ensuring GDPR compliance and proper data residency has become a crucial factor. This blog provides a comprehensive, side-by-side comparison of four leading Large Language Models (LLMs) tools—Microsoft Copilot M365 & Chat, ChatGPT, Claude, and Google's Gemini specifically evaluating their GDPR compliance and data residency options for EU and UK customers.

Understanding GDPR and Data Residency

The General Data Protection Regulation (GDPR) imposes stringent rules for handling personal data within the EU and UK, demanding transparency, user consent, robust security, and clear data residency arrangements. For organisations adopting cloud-based AI, ensuring compliance with GDPR and local data protection laws is essential.

GDPR Compliance Side-by-Side Comparison

Feature	Microsoft Copilot M365 & Chat	OpenAI ChatGPT	Anthropic Claude	Google Gemini
Data Processing & Storage	Strong GDPR-compliant data handling integrated into M365 & Chat with Enterprise Data Protection.	GDPR-compliant data practices; now offers EU data residency for Enterprise, Edu and API customers.	Privacy-by-design principles; minimal data retention; new web search does not alter core GDPR stance.	Integrated GDPR-compliant data policies; robust storage and processing practices.
User Consent & Transparency	Robust, user-controlled consent framework and transparent data handling policies.	Transparent privacy policy with clear explanation of user rights; enterprise customers have greater control over data usage.	Transparent ethical AI design; consent for new web search feature emerging clearly.	Strong consent management and clear transparency policies.
Data Residency (EU/EEA & UK)	Dedicated regional data residency options for EU/UK customers, explicitly provided.	New regional hosting option available: EU-based processing and storage now possible for eligible customers.	No default regional residency; bespoke arrangements required for strict residency compliance.	Clear, explicit regional residency within EU/UK via Google Cloud infrastructure.
Security & Auditing	Extensive audits and ISO certifications; strong security built into enterprise products.	Robust security standards with continuous improvement.	Strong security standards maintained even after web search launch.	Google’s mature and comprehensive security auditing framework.
Regulatory Engagement	Active regulatory engagement; detailed documentation and updates provided.	Active engagement, including updates following EU scrutiny (e.g. Italy); data residency updates reflect continued evolution.	Monitored closely; no high-profile regulatory intervention yet.	Active, ongoing engagement with regulators aligned with Google standards.
GDPR Compliant?	Yes	Yes	Yes (with caveats)	Yes
Can data remain entirely within EU/UK?	Yes	Only for eligible Enterprise, Edu and API customers	No	Yes

Vendor Details

Microsoft Copilot M365 and Copilot Chat

For enterprise customers, Copilot M365 and Chat leverages Microsoft's well-established GDPR compliance framework, offering robust regional data residency options and explicit contractual guarantees. Organisations needing stringent compliance and clear data locality within the EU or UK benefit from Microsoft’s detailed Data Processing Addendum and Enterprise Data Protection.

OpenAI ChatGPT

OpenAI recently introduced EU-based data residency options for eligible ChatGPT Enterprise, ChatGPT Edu, and API customers. Data can now be processed and stored entirely within the EU/EEA, significantly enhancing compliance for European organisations. This development addresses previous limitations around data sovereignty and aligns ChatGPT with stricter data protection expectations. Eligibility requires specific project configurations within OpenAI’s API platform.

Anthropic Claude

Anthropic's Claude embodies privacy-by-design and data minimisation principles aligned with GDPR. However, with no default EU/UK regional residency, enterprises must secure bespoke contractual assurances, especially following the recent web search feature introduction, ensuring compliance with local residency demands.

Google Gemini

Gemini benefits from Google’s extensive and mature data compliance infrastructure, explicitly allowing EU/UK customers to select regional data centres ensuring GDPR-compliant processing. Google’s comprehensive security measures and clear data residency options provide robust assurances for stringent regulatory requirements.

Practical Implications for EU/EEA and UK Organisations

When selecting an LLM, EU and UK enterprises must consider:

Explicit Regional Residency: Ensure your chosen provider offers clear and guaranteed regional data residency.
Compliance Clarity: Confirm the vendor’s GDPR compliance through documentation and contractual terms.
Enterprise-specific Agreements: For vendors like Claude, negotiate tailored agreements to secure explicit data residency commitments.

Strategic Recommendations

For organisations prioritising regulatory risk management:

Microsoft Copilot M365 & Chat, Google Gemini, and now ChatGPT (Enterprise/Edu/API customers) provide robust EU/UK data residency assurances.
Anthropic Claude, while GDPR aligned, requires additional engagement to ensure strict compliance for region-specific residency.

For enterprise organisations, going with an existing vendor is typically the best bet. For example, Microsoft has largely aligned the GDPR compliance of M365 Copilot and Copilot Chat with existing standards for M365 data, making it easy for customers who have already reviewed those data privacy agreements to understand.

In the world of enterprise technology being successful with selecting AI tools usually involves following the data, not only for privacy reasons but also data access, security and permissioning. Despite what the AI vendors tell you, there's not much difference between tools-and any gaps close extremely quickly. Sticking with existing vendors who already host your data reduces technical complexity and business risk.

Are you using the right solution for your GDPR requirements?

Ensuring GDPR compliance and proper data residency isn’t optional—it's essential for enterprises adopting AI across Europe and the UK. The side-by-side comparison provided here helps decision-makers quickly assess which LLM solutions align best with their compliance and business needs.

For tailored advice on GDPR compliance, data residency, and choosing the right AI partner for your organisation, contact our experts for a personalised consultation.