When AI indexes your files, SharePoint and OneDrive expose data very differently. Here is how permission models, governance gaps, and the oversharing problem change everything about where you store documents for AI workflows.
A Seagate and IDC study of 1,500 enterprise leaders found 68% of business data goes completely unused. AI amplifies whatever state your files are in. If SharePoint is a graveyard of duplicate presentations and orphaned project sites, AI just indexes the mess faster. File organization is not a nice-to-have before AI adoption. It is a prerequisite.
Your SharePoint and OneDrive setup is organized for people browsing folders. Claude reads metadata. That mismatch is why the M365 Connector finds nothing useful and Cowork struggles with your files. Restructuring for AI access takes a weekend and pays off immediately.