Mastering Agent Governance in Microsoft 365

Chad Stout

Microsoft

Jul 15, 2025

Episode 5: Microsoft Purview and Data Protection

The "Mastering Agent Governance in Microsoft 365" series is based on the Administering and Governing Agents whitepaper published by Microsoft and designed to educate IT leaders, compliance officers, and decision-makers about the importance of governance for AI agents in Microsoft 365, particularly in highly regulated industries like Healthcare and Life Sciences (HLS). The six-episode series cover the growing role of agents, the risks of unmanaged agents, and the strategic importance of governance frameworks.

Securing sensitive data in the age of AI-driven agents

In Healthcare and Life Sciences, data is more than just information—it’s patient records, clinical trial results, and intellectual property. As AI agents become more embedded in daily workflows, the need to protect sensitive data has never been more urgent. In this episode, we explore how Microsoft Purview provides the compliance backbone for agent governance in Microsoft 365.

Why Microsoft Purview Matters in HLS

AI agents in HLS environments often interact with:

Protected Health Information (PHI)
Personally Identifiable Information (PII)
Proprietary research and clinical data

Without proper controls, these interactions can lead to data leaks, regulatory violations, and reputational damage. Microsoft Purview delivers a unified platform for data security, governance, and compliance—ensuring that every agent interaction is secure, auditable, and aligned with industry regulations like HIPAA, GDPR, and FDA 21 CFR Part 11.

Key Capabilities of Microsoft Purview for Agent Governance

1. Data Security Posture Management for AI
Purview provides visibility into how agents interact with sensitive data. It helps organizations:

Discover sensitive data used in agent prompts and responses
Detect risky AI usage (e.g., excessive prompts from a departing employee)
Maintain regulatory compliance by flagging unethical or unauthorized interactions

This is especially critical in HLS, where even a single misstep can trigger audits or legal action.

2. Data Loss Prevention (DLP)
Purview enforces DLP policies that prevent agents from accessing or processing files labeled as “Highly Confidential” or other sensitive classifications. For example:

An agent grounded in SharePoint cannot process PHI if the file is labeled accordingly
Users are notified when content is blocked due to DLP policies

This ensures that sensitive data stays protected—even when accessed by AI.

3. Oversharing Assessments
Purview runs weekly risk assessments to detect oversharing of sensitive data by agents. It analyzes:

Which SharePoint sites are used by agents
How often sensitive files are accessed
Whether access patterns suggest potential data exposure

This helps HLS organizations proactively mitigate risks before they become incidents.

4. Information Protection and Sensitivity Labels
Purview automatically applies sensitivity labels to agent interactions and referenced files. These labels:

Control access and usage rights
Are cited in agent responses
Govern how data is viewed, extracted, or shared

This ensures that agents respect the same data boundaries as human users.

5. Insider Risk Management
Purview detects risky behavior by users interacting with agents—such as excessive access to sensitive data or unusual prompt patterns. This helps security teams: