Forum Discussion
Microsoft 365 Copilot not showing up as location in DLP
Hi,
I am working on implementing security measures for Microsoft Copilot in a client environment. I want to create a DLP policy to not process data with certain sensitivity labels but when I go into DLP to create the policy, the location for Microsoft 365 Copilot is not an option. I also noticed that the "Fabric and Power BI workspaces: location is also not available. I have checked other similar client M365 tenants, and both of these locations are available by default. Any insight would be appreciated.
5 Replies
Yes, this can happen in Microsoft Purview DLP when Microsoft 365 Copilot doesn’t appear as a location. In most cases, it is related to licensing or the feature not being fully enabled in the tenant yet. Also, DLP policy scope and service availability can affect whether Copilot shows up. It’s recommended to verify Copilot licensing, check Purview DLP settings, and ensure the tenant has the latest updates enabled.
This isn’t an E3 vs E5 issue on its own.
Microsoft Purview has two separate DLP capabilities for Copilot, with different requirements:
- DLP for Copilot prompts (blocking sensitive data in prompts) is available to all licence tiers (E1/E3/E5) for tenants with access to Copilot and Copilot Chat.
- DLP to prevent Copilot from processing files and emails based on sensitivity labels does require E5 (or E5 Compliance add-on).
Because of this, an E3 tenant can legitimately see the Microsoft 365 Copilot location when creating a custom DLP policy, depending on what capability is enabled.
More info Microsoft Purview service description - Service Descriptions | Microsoft Learn. So this should not be an issue.
If the Copilot location is missing despite using the Custom template, the most common causes are:
- RBAC – only specific roles (for example Purview Data Security AI Admin or Entra AI Admin) can configure DLP for Copilot; without these, the location may not appear. Check the roles here Learn about using Microsoft Purview Data Loss Prevention to protect interactions with Microsoft 365 Copilot and Copilot Chat | Microsoft Learn
- Tenant rollout/flighting – Copilot DLP has been gradually rolled out, and availability can still differ between tenants, even with identical licensing.
Licensing alone doesn’t explain the behaviour you’re seeing; I’d validate roles first, then assume tenant-level rollout variance.
- Nadia-Fortini
Microsoft
Hi Mpangwin1, for the Copilot workload to show up, you need to choose the Custom template when creating the policy. Then, the Copilot workload will show up.
There are additional license requirements for these locations. DLP for Copilot is only available with E5, much like Teams, and Fabric requires pay as you go billing to be enabled. Alternatively, you need the Compliance add-in.
In addition, Copilot support is currently in preview, so it might not yet be available for all tenants. Lastly, the option will only be available when you create custom policy (i.e. you cannot use any predefined templates even if you meet all the other prerequisites):
- The Microsoft 365 Copilot (preview) policy location is only available in the Custom policy template.
Thanks for your reply. The screenshot above is from the custom policy template. Also, this client has E3 licensing but not E5 however, the other client tenants that I have checked did not have E5 subscriptions either, but the option was there. The only difference between this tenant and others that AI have compared it to is that this one has Copilot licensing and the others do not, but I have yet to find a place in Copilot admin center to manage this. I'm currently leaning toward the "Copilot support is currently in preview, so it might not yet be available for all tenants." as the most viable solution at this point.
