Mastering Microsoft Teams Chat for Better Communication

Unlock Microsoft Teams Chat's full potential by exploring advanced features, best practices, and expert tips in our latest guide.

Microsoft Teams has emerged as the cornerstone of business collaboration, serving over 280 million users worldwide. Despite its widespread adoption, many organizations only scratch the surface of Teams’ capabilities, particularly in its chat functionality—a core feature that can transform how teams communicate and collaborate.

The chat system in Microsoft Teams is more than just a messaging tool. It’s a sophisticated communication hub that, when used effectively, can eliminate endless email chains, reduce meeting fatigue, and create a more dynamic workflow. However, research suggests that most users utilize less than 40% of Teams’ chat features, missing out on valuable opportunities to enhance their daily work processes.

This comprehensive guide will walk you through the essential aspects of Teams chat, revealing how to leverage its full potential. We’ll explore:

  • Advanced chat features that go beyond basic messaging
  • Step-by-step instructions for creating and customizing chat environments
  • Strategic advantages and potential limitations of different chat approaches
  • Recent and upcoming updates to Teams chats’ functionality
  • Ways to enhance Teams chat functionality with VirtoSoftware solutions

Whether you’re managing a small team or coordinating across a large organization, understanding these chat capabilities can significantly impact your communication efficiency. By the end of this article, you’ll have the knowledge to transform your Teams chat experience from a simple messaging system into a powerful collaboration tool that drives productivity and improves team engagement.

What Is Teams Chat?

Microsoft Teams Chat is a powerful real-time communication tool within Microsoft Teams that enables users to quickly exchange messages, share files, and collaborate efficiently. Whether for informal discussions, quick decision-making, or urgent problem-solving, Teams Chat provides a seamless and dynamic messaging experience across desktop, mobile, and web platforms. Unlike traditional email or scheduled meetings, Teams Chat is designed for instant communication, making it ideal for both individual and group interactions in a workplace setting.

Key features of Teams Chat

Teams Chat offers a rich set of features designed to help you work better together. These include:

  • Private chats (1:1 messaging): Allows direct messaging between two individuals. Supports text, emojis, GIFs, reactions, and easy file and link sharing for a more engaging and collaborative conversation.
  • Microsoft Teams group chats for small teams & projects: Create chat groups for temporary projects, task-specific discussions, or departmental communication. Add or remove participants as needed, and name chats for easy identification and organization. Quickly start a video or audio call (“Meet Now” or “huddle”) directly within the chat.
  • File & document integration: Share and edit files (Word, Excel, PowerPoint, PDFs, etc.) directly within the chat. Files are stored in OneDrive (for private chats) or SharePoint (for channels), but are readily accessible and manageable directly within the chat interface itself. This enables real-time co-authoring and version control.
  • Instant notifications & mentions: Use @mentions to notify specific users or highlight important messages. Customize notification settings to stay informed without unnecessary distractions.
  • Rich media & collaboration tools: Supports images, videos, voice messages, stickers, and integration with interactive Loop components (live elements that can be shared across Microsoft 365 apps), polls, and third-party apps. You can also schedule calls or meetings directly from the chat window.
  • Message forwarding: Easily forward messages to other chats or channels. You can even forward messages containing Loop components while preserving their interactive functionality.

Common use cases for Teams Chat

Teams Chat is incredibly versatile. Here are just a few examples of how it can be used in your daily workflow:

  • Quick clarifications: Ask a colleague for a status update without sending an email.
  • Brainstorming ideas: Share thoughts and feedback in an informal chat before a formal discussion.
  • Urgent issue resolution: Respond to time-sensitive problems in real-time.
  • File collaboration: Share and edit documents instantly without switching platforms.

How Teams Chat differs from other Teams features

While Teams Chat is designed for quick, informal messaging, other parts of Microsoft Teams serve different purposes:

  • Teams & channels: Teams provide a structure for bringing people together around a shared purpose. Channels within a Team offer dedicated spaces for conversations, file sharing, and collaboration related to specific topics or projects.
  • Meetings & calls: Used for scheduled or ad-hoc voice and video communication.
  • Tasks & Planner: Helps teams organize and track project progress.

Recent updates to Teams offer more integrated views of chats and channels, streamlining access to all your conversations. 

What is the difference between Teams and Teams Chat?

To clarify the distinction, here’s a table summarizing the key differences between the overall Microsoft Teams platform and the specific Teams Chat functionality:

FeatureMicrosoft TeamsMicrosoft Teams Chat
PurposeBroad collaboration platformInstant messaging tool
StructureOrganized into teams & channelsFree-form, real-time conversations
Best ForProject management, meetings, structured discussionsQuick Q&A, informal discussions, urgent messages
File StorageSharePoint (Teams), OneDrive (Chat) – Accessible directly within the respective interfaceOneDrive (Chat), SharePoint (Teams) – Accessible directly within the respective interface
Use CaseOngoing team collaboration & documentationFast communication & decision-making
Fig. 1. Difference between Teams and Teams Chat.

In short, Teams Chat is your go-to tool for fast, direct communication, while Microsoft Teams as a whole provides a comprehensive workspace for structured collaboration.

Key Updates to Microsoft Teams Chat in Early 2025

Microsoft Teams has been rolling out a wave of improvements to its chat functionality, enhancing collaboration, security, and the overall user experience. Here’s a breakdown of the key changes:

Streamlined communication and collaboration

Teams has introduced several new features designed to make communication and collaboration smoother and more efficient. These include:

  • Unified interface: Teams now presents chats, channels, and shared files within a single, streamlined view. This simplifies navigation and allows users to organize sections by project or team, reducing clutter and improving focus.
  • Threaded replies: The highly anticipated threaded conversations feature is currently in testing and is expected to be widely available by mid-2025. This will make following complex conversations much easier and keep discussions organized.
  • Enhanced message forwarding: Forwarding messages with embedded Loop components is now possible while preserving permissions. This facilitates seamless collaboration on dynamic content. You can also forward messages between channels and add context or @mentions for clarity.
  • Quick hyperlinking: Creating hyperlinks is now a breeze. Simply copy a URL, highlight the desired text, and paste the URL—the text will automatically become a hyperlink.
  • Easy meeting recap sharing: Share links to meeting recaps directly from the chat, giving everyone easy access to recordings, transcripts, and key takeaways.

Boosting security

Protecting sensitive information and defending against threats is a top priority. Teams has implemented the following security enhancements:

  • Phishing protection: New brand impersonation protection automatically flags potentially malicious messages from external domains, enhancing security and reducing the risk of phishing attacks. This feature will be fully rolled out by mid-February 2025.
  • Granular content control: Meeting organizers with Teams Premium subscriptions gain more control over meeting content. They can now prevent participants from copying or forwarding meeting chats, transcripts, and captions.

Integrating AI and Copilot

Microsoft is deepening its integration of AI into Teams, leveraging the power of Copilot to help you work smarter. Here’s how:

  • Microsoft 365 Copilot chat: Formerly known as “Copilot,” this AI assistant is now prominently pinned in Teams. It’s readily available in the left rail on desktop and in the header on mobile devices. Copilot can suggest follow-up questions during meetings and help you draft messages, boosting productivity.
  • Smarter meeting recaps: Copilot-powered meeting summaries are now more insightful, including speaker highlights and suggested action items, all accessible via shared links.

New ways to connect and communicate

Teams is broadening its communication capabilities beyond traditional chat and meetings, offering new ways to connect and share:

  • Storyline (Viva Engage replacement): Storyline offers a familiar social media-style feed within Teams. Share updates, news, and celebrate accomplishments with colleagues, fostering a stronger sense of community. This feature replaces Viva Engage and allows you to follow colleagues’ posts.
  • SMS Integration (US/Canada): Teams Phone users in the US and Canada can now send and receive SMS messages directly within Teams. Global expansion is planned for the future, further unifying communication channels.

Tools for small and medium businesses

Recognizing the unique needs of SMBs, Teams has cooked up some special features to help you wow customers and run smoother:

  • Live Chat Widget: Businesses using Microsoft 365 Business plans can now integrate a Teams chat widget directly into their websites. This enables real-time customer support with features like case assignment, transcripts, and performance dashboards.
  • Queues App: For a small monthly fee, SMBs can manage customer interactions (both inbound and outbound) efficiently within Teams using the Queues app.

These updates demonstrate Microsoft’s commitment to making Teams a more powerful, secure, and user-friendly hub for all workplace communication and collaboration. Most of these features are rolling out progressively and are expected to be fully available by March 2025.

Getting Started with Chats in Teams

Whether you’re starting a private conversation, creating a group chat, or sharing files, Teams Chat makes it easy to stay connected. Below is a step-by-step guide to help you get started.

Creating a Chat

Initiating a chat in Teams is straightforward. Here’s how to begin a one-on-one or group conversation:

  • Starting a Private Chat:
    1. Open Microsoft Teams: Launch the Teams app on your desktop, web browser, or mobile device.
    2. Access the Chat feature: Click on the “Chat” tab in the left sidebar.
Pic.1 . Navigating to the “Chat” section and starting a new conversation.
Pic.1 . Navigating to the “Chat” section and starting a new conversation.
  1. Start a new conversation: Click the “New Chat” button at the top.
  2. Enter a username: Begin typing the name or email of the person you want to chat with. Select them from the list.
Pic. 2. Entering names of people you want to chat with.
Pic. 2. Entering names of people you want to chat with.
  1. Send a message: Type your message in the text box and press Enter to send.

👉 How to name a chat in Teams? To name a chat in Microsoft Teams, open the chat, click the pencil icon next to the participant names, and enter a custom name. 

  • Creating a Group Chat:
    1. Follow steps 1-3 above to open a new chat window.
    2. Add multiple participants: Click on the “To” menu and enter additional usernames or emails.
Pic. 3. Creating a group chat.
Pic. 3. Creating a group chat.
  1. Name the group chat: Click on the edit (or arrow) icon to give the chat a meaningful name (e.g., “Marketing Project Q1”).
  2. Start messaging: Type and send messages as usual.

New participants are added to a chat by an existing member. Once added, they will receive a notification of the invitation and gain access to all new messages and shared files in the chat. They will not see messages sent before they joined.

👉 So, how to create a group chat in Teams & how to name a group chat in Teams? To create a Teams group chat, start a new chat, add multiple people in the “To” field, and send a message. You can name a group chat by opening it, clicking the pencil icon at the top, and entering a unique name.

How to join Microsoft Teams chat?

To join a Microsoft Teams chat, you must be invited by an existing participant. In private 1:1 or group chats, only those added by a participant can access messages and files. In Teams channels, members of the team can automatically participate in discussions. If the channel is private, an admin must grant access. Once added, you will see new messages and shared files but won’t have access to past conversations.

👉 How to add someone to a Teams chat? To add someone to an existing chat, click the “Add people” option, select the person, and choose whether they can see past chat history.

Chat setup

Customize your Teams chat experience to prioritize important conversations and manage notifications effectively:

  • Muting individual chats: Click on the three-dot menu (⋮) next to a chat. Select “Mute” to silence notifications.
Pic. 4. Navigating to the Chat settings for muting or pinning it.
Pic. 4. Navigating to the Chat settings for muting or pinning it.
  • Pinning important chats: Right-click on a chat and select “Pin” to keep it at the top of your chat list. Pinned chats stay visible for quick access.
Pic. 5. Navigating to the Notifications section in the Teams settings menu.
Pic. 5. Navigating to the Notifications section in the Teams settings menu.
  • Customizing chat notifications: Open Settings (⚙️) → Notifications. Adjust preferences for message alerts (sound, banner, or pop-up), mentions notifications (when someone tags you with @YourName), and missed messages reminders.

👉 How do I use Teams chat? Microsoft Team Chat allows users to send real-time messages, share files, and collaborate instantly. You can start a private chat by selecting “New Chat,” entering a username, and sending a message. Group chats enable multiple participants to communicate and work together on shared documents. Messages can include text, emojis, GIFs, and @mentions to notify specific users. Teams Chat is best for quick conversations, while Teams channels are used for structured discussions.

Collaboration & file sharing

Teams facilitates efficient collaboration through integrated file sharing and co-editing features. Here’s how to share files and leverage the power of OneDrive:

  • Sharing files in a chat: Click on the “+” sign and then paperclip 📎 icon in the chat box. Select a file from your device or cloud files. The file is shared instantly, allowing real-time collaboration.
Pic. 6. Attaching a file to your chat message.
Pic. 6. Attaching a file to your chat message.
  • Benefits of OneDrive & SharePoint integration:
    • Automatic file storage: All shared files are saved in OneDrive and SharePoint (see clarification on storage in a section below), ensuring easy access.
    • Real-time co-editing: Edit documents with teammates directly in Teams, Word, Excel, or PowerPoint.
    • Version control: Track changes and restore previous versions if needed.
    • Sharing permissions: Control who can view, edit, or comment on shared files.
  • Creating and sharing live components: Create live, synchronized components like lists, tables, and paragraphs that can be shared across Teams chats and channels, as well as other Microsoft 365 apps. This allows for dynamic updates and collaborative editing in real-time.
Pic. 7. Creating a Loop component in your chat message.
Pic. 7. Creating a Loop component in your chat message.
  • Searching for messages & files: Use the search bar 🔎 at the top of Teams. Enter keywords, usernames, or file names to quickly find past conversations and shared content.

👉 How to start a new chat in Teams? Starting a new chat is as simple as clicking the “New Chat” icon, entering a name or email, and typing a message.

Where are files from Teams Chat saved?

Files shared in Microsoft Teams chat are stored in OneDrive for Business or SharePoint, depending on the context of the sharing. Here’s a detailed breakdown:

  1. Private chats (1:1 or group)
    • Files shared in private chats are stored in the sender’s OneDrive for Business account.
    • These files reside within a folder named “Microsoft Teams Chat Files” in the sender’s OneDrive.
    • All participants in the chat receive a sharing link, providing access to the file from their respective OneDrive accounts.
  2. Teams channels
    • Files shared within a Teams channel are stored in the SharePoint site associated with that specific team.
    • Each channel within a team corresponds to a dedicated folder within the SharePoint document library. For instance, files shared in a channel named “General” will be stored in a “General” folder on the team’s SharePoint site.
  3. Meetings
    • Meeting chats: Files shared during a meeting chat follow the same storage logic as regular chats. If the meeting is within a channel, files are stored in the channel’s SharePoint folder. If it’s a private meeting, files reside in the organizer’s OneDrive for Business, under “Microsoft Teams Chat Files.”
Access permissions
  • Private chat files: Access is limited to the participants of the private chat. External users or those outside the chat require explicit permission to access the files.
  • Channel files: All members of the team have access to files shared within a channel, mirroring the team’s overall permissions structure within SharePoint.
Key considerations
  • Automatic folder creation: The “Microsoft Teams Chat Files” folder in OneDrive for Business is automatically generated by Microsoft Teams. It’s crucial to avoid manually renaming or relocating this folder, as it could disrupt file access and synchronization.
  • Backup strategy: Backing up Teams data requires a comprehensive approach that includes both SharePoint and OneDrive for Business backups. This ensures all files shared across different contexts are protected.
  • Storage limits: Be mindful of storage limitations within SharePoint and OneDrive for Business. Exceeding these limits might lead to additional costs or limitations on file sharing.
How to find files
  • Within Microsoft Teams: The easiest way to locate files is through the “Files” tab within a chat or channel. This provides a convenient view of all shared files within that specific context.
  • Directly via OneDrive/SharePoint:
    • Private chat files: Access these files by navigating to your OneDrive for Business account and locating the “Microsoft Teams Chat Files” folder.
    • Channel files: Access these files by navigating to the SharePoint site associated with the team, then to the “Documents” library, and finally to the specific channel folder.

This structured approach ensures that files in Microsoft Teams remain organized, secure, and readily accessible to authorized users, facilitating seamless collaboration within the platform.

👉Where to find Teams chat settings? You can find Teams chat settings by clicking on your profile picture in the top-right corner of Microsoft Teams and selecting Settings from the dropdown menu. Within the Settings menu, navigate to the Privacy or Notifications sections to customize chat-related preferences. For specific chat settings, such as read receipts or message formatting, open a chat, click the More options (•••) menu, and explore available options. Admins can manage organization-wide chat settings through the Microsoft Teams admin center.

Formatting messages

Teams offers several ways to format your chat messages, making them clearer, more organized, and visually appealing. Here’s a breakdown:

Using the formatting toolbar

Pic. 8. Formatting a message in a chat.
Pic. 8. Formatting a message in a chat.

The simplest method is using the toolbar that appears below the compose box when you click in it. This provides options for:

  • Bold: Select the text and click the B icon (or use Ctrl+B/Cmd+B).
  • Italic: Select the text and click the I icon (or use Ctrl+I/Cmd+I).
  • <u>Underline:</u> Select the text and click the <u>U</u> icon (or use Ctrl+U/Cmd+U).
  • Strikethrough: Select the text and click the S icon (or use Ctrl+Shift+X).
  • Highlight: Select the text and click the highlighter icon.
  • Font Color: Select the text and click the “A” icon with a colored underline. Choose your color.
  • Lists: Click the bulleted or numbered list icons.
  • Indent: Use the indent icons for nested lists or indented paragraphs.
  • Code Blocks: Use the </> icon to format text as code.
  • Insert Link: Use the link icon to insert hyperlinks.

Key considerations:

  • Preview: Before sending, preview your formatted message by clicking the “Format” icon (an “A” with a pencil). This toggles between the compose box and a preview pane.
  • Accessibility: Use formatting judiciously. Excessive bold or italics can hinder readability. Ensure sufficient color contrast.

By using these formatting tools, you can significantly improve the clarity and impact of your chat messages in Microsoft Teams.

👉 How to go to next line in Teams chat? Pressing Enter in Microsoft Teams chat sends the message immediately. If you’re wondering how to start a new paragraph in Teams chat, then press Shift + Enter. This allows you to format your message properly before sending it. You can use this shortcut to create structured messages with multiple lines or paragraphs. This is especially useful for long messages or breaking information into readable sections. If you want to know how to skip a line in Teams chat, then press Shift + Enter twice. This creates a visual space between sections, making your message easier to read. So, in summary—to create a new line in Teams chat, press Shift + Enter; to skip a line, press Shift + Enter twice.

Pros and Cons of MS Teams Chats

Microsoft Teams Chat is a powerful tool for real-time communication and quick collaboration. However, like any tool, it comes with both advantages and limitations. Below are the key pros and cons to consider when using Teams Chat.

Pros

Let’s start with the advantages of using Teams Chat:

  • Rapid responses: Teams Chat enables instant messaging, ideal for urgent issues, quick decisions, and real-time updates. This immediacy fosters quick responses and a stronger sense of connection compared to email.
  • Efficient small group collaboration: Small teams can communicate effectively without a dedicated channel. This is useful for short-term projects, quick brainstorming, and informal problem-solving.
  • Easy file & link sharing: Share documents, images, and links directly within the chat. Files are automatically saved to OneDrive or SharePoint, ensuring accessibility and version control.
  • Simple setup: Chats are created instantly. Simply select individuals and start conversing—no need for complex team or channel setup.

Cons

However, it’s important to be aware of the drawbacks:

  • Limited history for new members: New chat participants can’t see past messages, creating context gaps and potential for duplicated effort.
  • Information loss risk: Chats can become cluttered, making it hard to track key decisions. Unlike channels, chats lack organization features, potentially leading to overlooked action items. They are not ideal for storing important decisions long-term.
  • Difficult search: Retrieving past messages in lengthy chats can be tedious. While searchable, the lack of subject lines and informal language can hinder effective searching.
  • Message overload & human error: Important updates can get buried under casual conversations and message floods. Overwhelming notifications can lead to users muting chats and missing critical information.

All in all, Teams Chat excels at fast, informal communication, but use it strategically. For structured discussions and long-term projects, Teams channels are often a better choice. But we’ll get into these differences in detail in the next section.

👉 How do I see Microsoft Teams chat? You can see your Teams chats by clicking the Chat tab in the left sidebar, where all your conversations are listed. 

MS Teams Chats vs. Teams Channels

While both Teams Chats and Teams Channels enable collaboration, they serve different purposes based on team size, project scope, and communication needs. Here’s how they compare with 2025 updates:

Teams Chats: Flexibility for small groups

Teams chats provide a quick and informal communication space ideal for smaller groups. Common scenarios include:

  • Ad-hoc discussions: Quick questions, informal brainstorming, or time-sensitive updates.
  • 1:1 or small groups: Supports up to 300 participants (up from 250 in 2024).
  • Private meetings: Ad-hoc video/audio calls directly from chats (scheduled meetings require channels).

Key features:

Here’s what makes Teams chats so effective for quick exchanges:

  • Privacy: Chat history is not retroactively accessible to new members*.
  • File storage: Files shared in chats save to the sender’s OneDrive.
  • Security: Subject to organizational retention policies, but not visible to non-participants.

👉*NB: When adding new members to an existing group chat (not a channel), the organizer chooses whether to share chat history:

  • All history
  • History from past X days
  • No history

If no history is selected, the new member cannot view prior messages

2025 updates

Teams chats have been further improved in 2025 with the following updates:

  • Unified Chat/Channel interface: Chats now appear (or will appear for some users) alongside channels in a single view, with customizable sections (e.g., “Project X”). This streamlined interface improves navigation and allows for quicker access to relevant conversations.
  • Hybrid collaboration: Forward chat messages containing Loop components to channels.
  • Improved message display: Messages are displayed more clearly, with better separation between conversations and responses, especially in high-traffic chats.

Teams Channels: Structured collaboration

Teams channels facilitate organized collaboration in the following scenarios:

  • Long-term projects: Persistent workspace for documentation, task tracking, and cross-department coordination.
  • Large-scale communication: Supports up to 10,000 members per channel.
  • Public discussions: Threaded conversations (generally available in 2025) enable topic-focused dialogues.

Key features

The following key features enable organized collaboration within Teams channels:

  • File storage: Saves to SharePoint, accessible to all team members.
  • App integration: Built-in integration with Power Automate, Planner, and 1,400+ third-party tools.
  • External access: Guests can join standard channels but cannot use shared channels.

2025 updates

The 2025 updates improve the Teams channel experience with:

  • Copilot file summaries: AI-generated document summaries appear directly in channel threads.
  • Custom sections: Pin critical channels (e.g., “Q1 Budget”) for quick access.
  • Channel cards: Add informational cards to channels to provide insights on usage and guidelines.
  • Faster access: Easily see unread posts and respond directly without navigating multiple tabs.
  • Improved search: Quickly find messages, files, or people using enhanced search options.
  • More flexible notifications: Control which channel updates are prioritized to minimize distractions.
  • Export Q&A: Export questions and answers from Teams meetings for summarization and record-keeping.
  • Auto-hiding of inactive channels: Teams will automatically hide infrequently used channels.

When to use each tool

For clarity on which tool best suits your needs, refer to the table below:

FactorChatsChannels
Participants≤ 300≤ 10,000
History visibilityLimited to current membersPersistent for all
Meeting schedulingAd-hoc onlyScheduled or recurring
File locationSender’s OneDriveTeam SharePoint
Best forSensitive discussions, quick decisionsProject hubs, announcements, transparency
Fig. 2. Teams Chat vs Teams Channel.

Practical implications for Teams

These updates have the following practical implications for teams:

  1. Avoid chat sprawl: Move discussions to channels once they involve >10 people or require documentation.
  2. Leverage 2025 features:
    • Use custom sections to group related chats/channels (e.g., “Client A”).
    • Forward chat-based Loop components to channels for broader visibility.
  3. Compliance: Chats are not exempt from eDiscovery—critical decisions should still occur in channels for auditability.

👉 To learn more about Teams updates, please check out the following resources:

Chat Access and Security Considerations

Chats in Microsoft Teams offer varying levels of privacy depending on their type and organizational configuration:

  • One-to-one and group chats (private chats): These conversations are designed for private communication between the participants only. Messages are not visible to anyone outside the chat, including other team members, team owners, or guests who join the team later. New participants added to an existing private chat cannot see the chat history prior to their addition.
  • Channel conversations: These conversations are public within the team. Every member of the team, including future joiners, can view the channel and its entire conversation history.
  • Private channels: These channels offer a more restricted space within a team. Only members added to the private channel can access its conversations and files. A team can have up to 1,000 private channels.

It’s crucial to understand the distinction between these chat types when discussing privacy and access.

👉Are Microsoft Teams chats really private? Teams chats offer different levels of privacy depending on their context. One-to-one and group chats are designed to be private between the participants. However, organizational policies for legal hold, eDiscovery, communication compliance, DLP, retention, and auditing can grant administrators access to chat content, even in private conversations, if deemed necessary for legal or compliance reasons. Private channels offer more restricted access within a team.

Privacy settings & administrator access

While private chats prioritize confidential communication, organizational policies and legal requirements can sometimes supersede individual privacy expectations. Organizations can implement various tools and policies that may grant administrators access to chat content, including:

ToolFunction2025 Updates
Legal holdPreserves chat data indefinitely for legal discovery purposes.Extended to include Teams meeting transcripts.
eDiscoveryAllows authorized personnel to search and export specific chat content for legal or compliance investigations.Now supports searching and exporting content from external/guest access chats.
Communication complianceMonitors chat content for policy violations (e.g., harassment, sensitive data leakage, inappropriate language).Enhanced AI capabilities can monitor private chats for bullying and stalking behavior.
Data Loss Prevention (DLP)Prevents sensitive information (e.g., credit card numbers) from being shared in chats.Deeper integration with Copilot to proactively flag confidential information during message drafting.
Supervised chatsRestrict chats to monitored groups (e.g., for educational settings).New admin policies allow blocking specific users from collaborating.
Fig. 3. Org privacy & compliance policies. 

If any of these policies are active (including retention and editing policies), administrators may have access to chat content, even in private chats. Users should be aware of their organization’s policies regarding data access and retention. It’s also important to note that these policies are typically not retroactive, meaning they won’t apply to messages sent before the policy was enacted unless a retention policy specifically preserves historical data. Admins must explicitly configure these tools—they are not enabled by default.

Additionally:

  • Phishing protection: Enhanced security measures trigger brand impersonation alerts for external chat messages during initial contact, helping protect users from phishing attempts. This is enabled by default.
  • Message forwarding: Users can forward chat messages containing Loop components to channels, which can expand the visibility of the information.
  • Block lists: Admins can block specific external users or entire domains from contacting their organization, providing granular control over external communication.

Learn more about sensitive information, privacy, and security (and relevant updates) in Teams here:

👉Can everyone see your Teams chat? No. Only the participants in a one-to-one or group chat can see the messages within that chat. Channel conversations are visible to all members of that channel. IT administrators might have access to chat history, even in private chats, if company policies for data auditing, legal matters, or compliance checks require it. This access is not typically granted by default and requires explicit configuration.

How VirtoSoftware Products Improve Chats in Teams

VirtoSoftware offers a suite of products designed to extend the functionality of Microsoft Teams, particularly focusing on enhancing collaboration and streamlining workflows within the Teams environment. These tools provide advanced task management, scheduling, notification, and visualization capabilities, ultimately boosting team productivity and facilitating better project management.

Virto Kanban Board for Microsoft Teams

Pic. 9. Sample Virto Kanban Board within Teams. 
Pic. 9. Sample Virto Kanban Board within Teams. 

Virto Kanban Board integrates Kanban-style task management directly into Teams. This allows teams to visualize their workflow, track task progress, assign responsibilities, and update statuses without leaving the Teams interface. Customizable board layouts cater to diverse team needs and project requirements.

💡 Use Case: Kanban + Teams Chat

During a Teams chat discussing project tasks, team members can instantly add, update, or re-prioritize tasks on the integrated Kanban board. This real-time task management eliminates the need for separate tracking systems and keeps all project-related communication centralized within Teams. This is particularly valuable for daily stand-up meetings, sprint planning, and other collaborative discussions.

Virto Calendar for Microsoft Teams

Pic. 10. Sample Virto Calendar within Teams. 
Pic. 10. Sample Virto Calendar within Teams. 

Virto Calendar provides a shared calendar within Teams, facilitating meeting scheduling and event tracking. Synchronization with SharePoint and Outlook consolidates scheduling information, offering a unified view of team activities and deadlines.

💡 Use Case: Calendar + Teams Chat

While discussing deadlines in a Teams chat, users can seamlessly add those deadlines to the shared Virto Calendar. This ensures all team members have visibility into project milestones and upcoming tasks, promoting better coordination and accountability.

Virto Notifications & Reminders App for Microsoft Teams

Virto Notifications & Reminders App automates notifications within Teams, keeping teams informed about important updates, approaching deadlines, and task changes. Customizable alerts can be triggered by various events, such as task status updates, SharePoint document modifications, or approaching deadlines.

💡 Use Case: Alerts + Teams Chat

Teams discussing project updates in a chat can benefit from automated reminders delivered directly within the Teams interface. This centralized notification system reduces reliance on email and ensures crucial information isn’t overlooked.

Why integrate VirtoSoftware with Microsoft Teams Chat?

  • Centralized collaboration: Consolidates project management tools within Teams, reducing the need to switch between applications.
  • Improved productivity: Manage tasks, set schedules, and stay on top of updates right in your Teams chats.
  • Improved transparency and control: Real-time updates and shared visualizations keep all team members informed and accountable.
  • Reduced context switching: Minimizes disruptions by providing access to project data, calendars, and notifications within the Teams interface.
  • Flexible customization: VirtoSoftware products offer customization options to align with specific team processes and project requirements.

All in all, using VirtoSoftware in Teams helps teams work better together, get more done, and finish projects faster.

Conclusion

Mastering the nuances of Microsoft Teams chats, from understanding their various types to utilizing their features correctly, can significantly reduce email overload, streamline team communication, and accelerate workflows. But the true power of Teams emerges when its chat functionality is integrated with other powerful tools. This integration elevates communication from simple messaging to a dynamic hub for project management, task coordination, and knowledge sharing.

VirtoSoftware solutions exemplify this transformative potential. Tools like Virto Calendar, Virto Kanban Board, and others don’t merely expand the functionality of Teams; they fundamentally enhance how teams organize their work. By centralizing project information, automating notifications, and providing visual tools for tracking progress, VirtoSoftware empowers teams to work more efficiently and effectively, regardless of their physical location.

To unlock the full potential of Microsoft Teams and elevate your team’s collaborative efforts, we encourage you to explore the comprehensive suite of VirtoSoftware solutions. Discover how these tools can transform your Teams environment into a truly integrated and highly productive workspace:

To deepen your understanding and refine your Teams workflows, check out these additional resources:

Official Microsoft resources

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Marina Conquest
Marina Conquest

Marina Conquest is a seasoned copywriter with a passion for business development, ecommerce, and startup ecosystems. With over a decade of experience crafting compelling narratives for tech companies, Marina brings her entrepreneurial spirit and creative flair to every project.

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