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Compliance Meets AI: Deep Dive into Sensitivity Labels and DLP for Copilot

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Jay_Cotton
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Oct 21, 2025

Last Friday’s session was packed with insights on Data Loss Prevention (DLP) and Sensitivity Labels in Microsoft Purview, and how they integrate with Copilot for M365 to keep your data secure while enabling productivity.

If you missed the session, we have you covered you can watch it here https://aka.ms/Compliance-Meets-Ai-Session-Three 

Key Highlights:

  • Sensitivity Labels & Copilot: We explored how labels inherit across Copilot-generated content, why label priority matters, and the critical role of extract permissions for Copilot responses.
  • Endpoint DLP: Ben Perkins walked us through onboarding endpoints, using Purview clients, and applying policies to prevent sensitive data egress to browsers, USB devices, and even generative AI sites.
  • Policy Design Tips: From inline browser protection to advanced classification scanning, we covered best practices for creating robust DLP rules without sacrificing Copilot’s power.
  • Licensing & Integration: E5 licensing simplifies DLP coverage across Exchange, SharePoint, OneDrive, Teams, and endpoints—plus integration with Microsoft Defender for Cloud Apps for cloud-based controls.
  • Upcoming Features: Expect expanded support for sensitive information types in Copilot DLP policies soon, and adaptive protection tied to insider risk levels.

Ben’s live demo showcased real-world configurations, including auto-labeling, simulation mode, and advanced rule tuning. The Q&A touched on practical challenges like encrypted PDFs, trainable classifiers, and overlapping policies with MDCA.

 

 

What’s Next?

Don’t miss our next session on Retention and Unified Audit Logs—critical for compliance and Copilot investigations. We’ll also dive into eDiscovery strategies.

📅 Next Session: Friday, October 24
🕛 Time: Noon Eastern
Register here: Compliance Meets Ai: Microsoft Purview in the Age of Ai | Microsoft Community Hub 

Published Oct 21, 2025
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