Copilot Studio confusion about internal vs external access

[RobOK]

We want to make a customized Copilot for employees that uses data on our Sharepoint. When going through the Studio (Generative AI panel) it warns that by proceeding we are allowing our data to go outside our tenant. What does this mean? How do we make an internal only Copilot that uses our documents but respects Sharepoint permissions?

[#2]

Not an expert here but that reads to me as data not flowing outside your tenant but more which data centers it may be using geographically on the back end.