Security Dashboard for AI: 3 Ways CISOs Drive Impact Today
AI is reshaping the enterprise and, with it, the threat landscape. Today's organizations face new threats with AI agents that modify configurations, execute workflows, and access data without direct human oversight. As a result, the gap between AI adoption and AI governance is widening, and CISOs face growing challenges to maintain visibility, control, and compliance across an increasingly complex ecosystem. As AI becomes embedded across the enterprise, CISOs face four key challenges: Scale without visibility: Over 75% of enterprises surveyed by PWC report they are already adopting AI agents. ¹ At the same time, over 80% of security teams surveyed by Nokod report visibility gaps into the applications and AI agents created within their organization. ² Rapid AI proliferation and evolving regulations make unified visibility across AI platforms, apps, and agents critical for CISOs. Fragmentation: Organizations rely on multiple siloed tools for AI asset visibility, making oversight fragmented and inefficient. According to Gartner’s 2024 survey of 162 enterprises, organizations use 45 cybersecurity tools on average. Expanding AI risk: AI proliferation is rapidly increasing the attack and risk surface, with the surge of AI-generated identities. By 2027, 4 out of 5 organizations will face phishing attacks powered by AI-generated synthetic identities, according to IDC. ³ This makes it harder for CISOs to track emerging threats, unmanaged assets, and shifting risk patterns. Overload: Alert fatigue is now a top challenge, with organizations now receiving an average of 2,992 security alerts daily, yet 63% go unaddressed. ⁴ Increasing AI risk without a way to prioritize what matters most compounds pressure on CISOs. In conversations between Microsoft and CISOs, one common need emerged: a single place to view integrated AI risk across the enterprise. To address these growing challenges, we are excited to provide CISOs with the Security Dashboard for AI, which recently became generally available. This unified dashboard aggregates posture and real-time risk signals from Microsoft Defender, Entra, and Purview into one unified, executive-level view of AI posture, risk, and inventory across agents, apps, and platforms. The Security Dashboard for AI helps CISOs: Gain unified AI risk visibility: Discover AI agents and applications and continuously monitor posture across the environment Prioritize critical risks: Correlate signals across identity, data, and threat protection to surface the most urgent issues Drive risk mitigations: Investigate activity and take action to help reduce exposure across the AI ecosystem The dashboard is capable of aggregating and surfacing AI risks from across Microsoft Defender, Entra, Purview - including Microsoft 365 Copilot, Microsoft Copilot Studio agents, and Microsoft Foundry applications and agents as well as cross-platform AI risks with Microsoft network-based or SDK-enabled integrations, and MCP servers. This supports comprehensive visibility and control, regardless of where applications and agents are built. As you activate Microsoft Security for AI capabilities, you can gain richer visibility into different aspects of your AI risk posture. Figure 1: Security Dashboard for AI in browser Getting Started with the Security Dashboard for AI The Security Dashboard for AI is provided at no additional cost to customers already using Defender, Entra, and/or Purview to protect their AI innovation. Based on how early adopter CISOs are using the dashboard, here are three ways you can start leveraging the dashboard today. 1. Manage Daily AI Risk Beyond reporting, you must stay hands-on with AI risks, scanning for emerging issues, verifying asset governance, and delegating remediations. The Security Dashboard for AI consolidates daily operations into a single pane of glass, surfacing critical alerts, unmanaged assets, and emerging risks. Use the dashboard as a daily AI risk radar, enabling rapid triage and ensuring you focus on the most urgent threats. Scan and triage daily AI risk: Start each day by identifying and prioritizing the highest-risk AI exposures. Risks are prioritized on severity reported by underlying security tools, helping you focus on the most critical exposures. Track AI asset inventory and monitor agent sprawl: Use the Inventory page to gain comprehensive visibility into all AI assets. Identify newly registered assets to mitigate the risk of shadow or unmanaged IT and surface inactive agents to proactively monitor and control agent sprawl. Delegate tasks for remediation: Move from insight to action by delegating tasks to your security team with easy click delegation. Delegation routes ownership via email or Microsoft Teams with notifications, due date, and ownership tracking. Delegate actions to specific roles such as global admin and AI administrator, without granting full access to underlying tools. Figure 2: Security Dashboard for AI risk page 2. Guide Briefings with Security Teams You require up-to-date intelligence to guide conversations with Security Teams about what is happening across the AI estate. The Security Dashboard for AI helps you anchor discussions in specific risks, trends, and ownership gaps surfaced in the data. The dashboard becomes a conversation driver, helping you ask the right questions about risk and security posture, to help ensure you and your team are triaging the right priorities. Because the dashboard consolidates signals from Defender, Entra, and Purview, both CISO and security teams operate from the same facts, enabling more outcome-driven discussions and faster prioritization, so you can shift the conversations from status updates to targeted action planning. Prioritize top AI Risk: Use the dashboard to help you prioritize the AI risk that matters the most. In preparation for team meetings, use Microsoft Security Copilot to explore AI risks, agent activity, and security recommendations via prompts to strengthen your AI security posture. With your team, take a closer look at risk vectors like data leakage, oversharing and unethical behavior, and discuss what actions need to be taken. Review Security Recommendations: Create a routine with your security team to review the recommended Microsoft security actions and track your progress over time. Across regular team check‑ins, review what has been addressed, what remains open, and which actions require follow‑up so you are prepared to respond to regulatory, audit, or executive questions with up‑to‑date metrics. Figure 3: Security Dashboard for AI inventory page Figure 4: Security Dashboard for AI delegation 3. Executive Reporting Reporting to the board on AI security posture has historically meant weeks of manual data gathering across multiple tools. The Security Dashboard for AI streamlines the data collection process with a single source of truth for AI risk, enabling confident, data-backed insights for your board presentations and conversations. Early adopters confirm the value and are using it for quarterly executive briefings. Prepare for Board Discussions: Use the dashboard to help get the right insights at the right altitude to help you prepare for discussions with your board. The Overview page aggregates identity, data security, and threat protection signals from Defender, Entra, and Purview into an AI risk scorecard with risk factors. The embedded Security Copilot AI-powered insights provide suggested prompts with risk assessments, summaries, and recommendations to help you prioritize what matters most. Extend Observability to Executive Stakeholders: Authorize AI risk follow‑ups to the appropriate security, identity, or governance owners using Microsoft Teams or email. Distribute visibility across GRC lead, AI governance, and IT leaders, while maintaining executive‑level oversight. Figure 5: Security Dashboard for AI Copilot prompt gallery Next Steps The Security Dashboard for AI helps CISOs manage AI risk faster, more confidently and more collaboratively with their team. Defender, Entra, and Purview signals are surfaced in a single pane of glass, providing observability across your AI estate. Drive faster triage, use data to support board-level discussions about AI risk, and enable coordinated action with integrated insights, recommendations, and delegation to help accelerate remediation across existing security workflows. The Security Dashboard for AI is generally available now. If your organization uses Microsoft Defender, Entra, and/or Purview, you already have access, no additional licensing is required. Visit ai.security.microsoft.com to access the dashboard directly, or navigate to it from the Defender, Entra, or Purview portals. Learn more about the Security Dashboard for AI on the MS Learn page and the Security Dashboard for AI Security Blog. Discover new features in the Security Dashboard for AI such as the Security Reader role, new delegation flow, and new identity risk section here. ¹AI agent survey. PwC, May 2025 ²Security Teams Taking on Expanded AI Data Responsibilities. Bedrock Data, March 2025 ³IDC FutureScape: Worldwide Security and Trust 2026 Predictions, November 2025 ⁴2026 State of Threat Detection and Response Report. Vectra AI, February 2026Security Dashboard for AI - Now Generally Available
AI proliferation in the enterprise, combined with the emergence of AI governance committees and evolving AI regulations, leaves CISOs and AI risk leaders needing a clear view of their AI risks, such as data leaks, model vulnerabilities, misconfigurations, and unethical agent actions across their entire AI estate, spanning AI platforms, apps, and agents. 53% of security professionals say their current AI risk management needs improvement, presenting an opportunity to better identify, assess and manage risk effectively. 1 At the same time, 86% of leaders prefer integrated platforms over fragmented tools, citing better visibility, fewer alerts and improved efficiency. 2 To address these needs, we are excited to announce the Security Dashboard for AI, previously announced at Microsoft Ignite, is now generally available. This unified dashboard aggregates posture and real-time risk signals from Microsoft Defender, Microsoft Entra, and Microsoft Purview - enabling users to see left-to-right across purpose-built security tools from within a single pane of glass. The dashboard equips CISOs and AI risk leaders with a governance tool to discover agents and AI apps, track AI posture and drift, and correlate risk signals to investigate and act across their entire AI ecosystem. Security teams can continue using the tools they trust while empowering security leaders to govern and collaborate effectively. Gain Unified AI Risk Visibility Consolidating risk signals from across purpose-built tools can simplify AI asset visibility and oversight, increase security teams’ efficiency, and reduce the opportunity for human error. The Security Dashboard for AI provides leaders with unified AI risk visibility by aggregating security, identity, and data risk across Defender, Entra, Purview into a single interactive dashboard experience. The Overview tab of the dashboard provides users with an AI risk scorecard, providing immediate visibility to where there may be risks for security teams to address. It also assesses an organization's implementation of Microsoft security for AI capabilities and provides recommendations for improving AI security posture. The dashboard also features an AI inventory with comprehensive views to support AI assets discovery, risk assessments, and remediation actions for broad coverage of AI agents, models, MCP servers, and applications. The dashboard provides coverage for all Microsoft AI solutions supported by Entra, Defender and Purview—including Microsoft 365 Copilot, Microsoft Copilot Studio agents, and Microsoft Foundry applications and agents—as well as third-party AI models, applications, and agents, such as Google Gemini, OpenAI ChatGPT, and MCP servers. This supports comprehensive visibility and control, regardless of where applications and agents are built. Prioritize Critical Risk with Security Copilots AI-Powered Insights Risk leaders must do more than just recognize existing risks—they also need to determine which ones pose the greatest threat to their business. The dashboard provides a consolidated view of AI-related security risks and leverages Security Copilot’s AI-powered insights to help find the most critical risks within an environment. For example, Security Copilot natural language interaction improves agent discovery and categorization, helping leaders identify unmanaged and shadow AI agents to enhance security posture. Furthermore, Security Copilot allows leaders to investigate AI risks and agent activities through prompt-based exploration, putting them in the driver’s seat for additional risk investigation. Drive Risk Mitigation By streamlining risk mitigation recommendations and automated task delegation, organizations can significantly improve the efficiency of their AI risk management processes. This approach can reduce the potential hidden AI risk and accelerate compliance efforts, helping to ensure that risk mitigation is timely and accurate. To address this, the Security Dashboard for AI evaluates how organizations put Microsoft’s AI security features into practice and offers tailored suggestions to strengthen AI security posture. It leverages Microsoft’s productivity tools for immediate action within the practitioner portal, making it easy for administrators to delegate recommendation tasks to designated users. With the Security Dashboard for AI, CISOs and risk leaders gain a clear, consolidated view of AI risks across agents, apps, and platforms—eliminating fragmented visibility, disconnected posture insights, and governance gaps as AI adoption scales. Best of all, the Security Dashboard for AI is included with eligible Microsoft security products customers already use. If an organization is already using Microsoft security products to secure AI, they are already a Security Dashboard for AI customer. Getting Started Existing Microsoft Security customers can start using Security Dashboard for AI today. It is included when a customer has the Microsoft Security products—Defender, Entra and Purview—with no additional licensing required. To begin using the Security Dashboard for AI, visit http://ai.security.microsoft.com or access the dashboard from the Defender, Entra or Purview portals. Learn more about the Security Dashboard for AI at Microsoft Security MS Learn. 1AuditBoard & Ascend2 Research. The Connected Risk Report: Uniting Teams and Insights to Drive Organizational Resilience. AuditBoard, October 2024. 2Microsoft. 2026 Data Security Index: Unifying Data Protection and AI Innovation. Microsoft Security, 2026Registration Open: Community-Led Purview Lightning Talks
Get ready for an electrifying event! The Microsoft Security Community proudly presents Purview Lightning Talks; an action-packed series featuring your fellow Microsoft users, partners and passionate Microsoft Security community members of all sorts. Each 3-12 minute talk cuts straight to the chase, delivering expert insights, real-world use cases, and even a few game-changing tips and tricks. Don’t miss this opportunity to learn, connect, and be inspired! Secure your spot now for the big day: April 30th at 8am Redmond Time. See agenda details below and follow this blog post (sign in and click the "follow" heart in the upper right) to receive notifications. ❗UPDATE❗This event is expected to last around 2 hours and 15 minutes, due to the incredible number of community sessions that were submitted! 💖 Please see the timing table below broken out into sections of four talks each, and plan to arrive 10 minutes before the section that interests you, OR stay for the whole time! Speakers will be available in the chat to answer your questions; please ask your questions during their session. Spillover Q&A forum links will also be shared. The full session recording will be indexed and posted to Microsoft Security Community YouTube within 24 hours after the event. Bookmark this page or follow this blog post for updates! Agenda Legend ↩️ Data Lifecycle Management 🔐 Information Protection 🚫 Data Loss Prevention (DLP) 🦾 Data Security Posture Management (DSPM) for AI 🤖 Purview for AI 👁️ Insider Risk Management (IRM) 🔍 eDiscovery 📊 Governance 🗒️ Compliance Manager 🛡️ Data Security All times are listed in US Pacific/Redmond Time. Session lengths are rounded to the nearest minute. AGENDA Section 1 - approximately 8:00 am - 8:43 am ↩️ The Day Offboarding Exposed Infinite Retention — Nikki Chapple Length: 10 minutes | Topic: Data Lifecycle Management A routine Purview request led to an unexpected discovery: more than 9,000 orphaned OneDrives and thousands of inactive mailboxes still storing content long after employees had left. This talk explains how a retain-only policy created hidden retention debt and how Adaptive Scopes can help organisations separate active users from leavers to avoid similar pitfalls. 🔐 The Purview Label Engine: Automated Classification, Translation, and co-Documentation for Enterprise Tenants — Michael Kirst-Neshva Length: 12 minutes | Topic: Information Protection Global enterprises face the challenge of implementing uniform data protection standards across borders and languages. In this talk, I’ll present a framework that makes Microsoft Purview labels truly scalable. Discover how to roll out parent and child label logics automatically, manage priorities with a single click, and generate instant compliance documentation for every business unit. 🗒️ What's In My Compliance Manager Toolbox: A Cloud Security Architect's Perspective — Jerrad Dahlager Length: 8 minutes | Topic: Compliance Manager A practical walkthrough of how I use Compliance Manager across real client engagements to map controls, track improvement actions, and simplify multi-framework compliance. No theory, just what works in the field. 🛡️ Stop, Think, Protect: Data Security in Real Life with Purview — Oliver Sahlmann Length: 8 minutes | Topic: Data Security With simple labels and matching DLP policies, Purview offers a practical and accessible way to approach data security. This lightning talk uses a real-life traffic light concept to show how a low barrier to adoption can still drive meaningful protection and awareness. Section 2 - approximately 8:44 am - 9:15 am 🔐 Using Purview to prevent oversharing with AI services — Viktor Hedberg Length: 10 minutes | Topic: Information Protection In this day and age, AI is the big thing. However, Copilot has access to everything you can access, including potentially sensitive data. In this session we will look at how to prevent Copilot to access highly sensitive data, using Information Protection. 🦾 How I Helped My Customers Understand their AI Usage (and protect their sensitive data) — Bram de Jager Length: 5 minutes | Topic: Data Security Posture Management (DSPM) for AI As AI tools explode across the web, many organizations still have no idea what’s actually happening in the browser—where employees type prompts, paste sensitive data, or visit public AI sites outside corporate governance. In this lightning talk, I’ll share how I helped customers shine a light on this issue. We’ll explore how Purview Data Security Posture Management (DSPM) can reveal which AI tools employees use, what types of data they input, and where sensitive information may leak through prompts. I’ll walk through real customer scenario where we detected risky AI usage patterns—such as employees pasting confidential documents into public chatbots. 🔐 Four Labels Max for Daily Use: Which Ones & Why? — Romain Dalle Length: 8 minutes | Topic: Information Protection Sensitivity labels are one of the most critical parts of a Purview Risk and compliance deployment, if not the most critical, because it directly impacts how end-users and business units should allow or restrict themselves to share their business data, internally and externally, on a daily basis. Labels have not other options than being precise, meaningful, and balanced in terms of embedded data security. Setting the right taxonomy is core to success, and is everything but a one-time project. 🚫 Data-driven Endpoint DLP Solution with Advanced Hunting — Tatu Seppälä Length: 8 minutes | Topic: Data Loss Prevention (DLP) This lightning talk shows you how to use KQL queries in advanced hunting to easily build initial sensitive service domain groups for authorized and unauthorized domains based on your organization's usage patterns. The same approach can be used for numerous other similar solution refinement and design purposes. Section 3 - approximately 9:16 am - 9:46 am 🔐 The Purview Hack No One Talks About: Container Sensitivity Labels That Fix Oversharing Fast — Nikki Chapple Length: 10 minutes | Topic: Information Protection Most organizations tackle oversharing with manual fixes, but the fastest solution is often overlooked. In this lightning talk, I show how container sensitivity labels automatically apply the right sharing and collaboration controls, ensuring every new Group, Team or SharePoint site starts secure by default. 🔍 Does M365 Support eDiscovery? — Julian Kusenberg Length: 11 minutes | Topic: eDiscovery A myth-busting session that separates perception from reality when it comes to Microsoft 365 eDiscovery capabilities. 📊 Improving Discovery, Trust, and Reuse of Analytics with Purview Data Products — Craig Wyndowe Length: 5 minutes | Topic: Governance This talk shows how bringing Power BI and Fabric assets into Microsoft Purview Governance Domains and Data Products creates a single, trusted view of enterprise analytics. By connecting reports, semantic models, and underlying data with shared metadata, ownership, and business context, organizations can make existing assets easy to discover and safe to reuse. 🔐 Why You Should Create Your Own Sensitive Information Types (SITs) — Niels Jakobsen Length: 5 minutes | Topic: Information Protection An in depth analysis of why Microsoft SITs are not one-size-fits-all, and how to create your own using what Microsoft has already built for you. Section 4 - approximately 9:47 am-10:30 am 👁️ From Zero to First Signal: Insider Risk Management Prerequisites That Actually Matter — Sathish Veerapandian Length: 8 minutes | Topic: Insider Risk Management (IRM) A focused live demo showing the real world prerequisites required for Microsoft Purview Insider Risk Management to work effectively. This session highlights the critical Entra ID, Intune, Microsoft Defender for Endpoint, and Purview DLP configurations that must be in place before creating IRM policies. 🤖 Securing data in the age of AI — Júlio César Gonçalves Vasconcelos Length: 11 minutes | Topic: Purview for AI AI will transform business as we know it; but without proper governance, it can introduce serious risks. We’ll show you how Microsoft Purview enables organizations to accelerate AI adoption while maintaining security, compliance, and transparency. 🔍 Beyond eDiscovery - Purview DSI for Security Investigation — Susantha Silva Length: 11 minutes | Topic: eDiscovery Most people hear “Microsoft Purview” and immediately think compliance, eDiscovery, or legal holds. But this session highlights Data Security Investigations, showing how DSI lets you take a DLP alert or insider risk signal and turn it into a structured investigation. 🚫 Elevating Purview DLP with a real world use case — Victor Wingsing Length: 14 minutes | Topic: Data Loss Prevention (DLP) Learn how I hardened Microsoft Purview DLP beyond out of the box defaults—closing real world data loss gaps, tuning policies to actual user behavior, and turning noisy alerts into protection that really blocks exfiltration. - Quick Closing/ Resource SharingWelcome to the Microsoft Security Community!
We have moved! Registering for webinars is now easier than ever—you can add any session directly to your calendar with a single click using the link below. Please visit: https://securitycommunity.microsoft.com/VirtualEvents/ to sign up for future webinars!Safeguarding Sensitive Data in Microsoft 365 Copilot Interactions: DLP for Microsoft 365 Copilot
Microsoft 365 Copilot is redefining how organizations work, bringing the power of generative AI directly into our secure productivity tools. As Copilot adoption accelerates, we’ve heard that you want more control over how your sensitive data can be used in interactions with Copilot. At Ignite 2025, Microsoft announced a major enhancement: Microsoft Purview Data Loss Prevention for Microsoft 365 Copilot to safeguard Microsoft 365 Copilot and Copilot Chat prompts, now entering General Availability. Even better, this capability is included for all users of Microsoft 365 Copilot and Copilot Chat. Why DLP for Copilot Prompts Is a Game-Changer As organizations adopt Copilot, their ways of sharing, creating, and interacting with data expand. With just a prompt, users can have Copilot summarize documents, analyze spreadsheets, or help brainstorm presentations. However, it raises an important question: what if the prompt includes sensitive information, like project code names, financial account numbers, health records, or other sensitive data? Over the last 2 years, Microsoft has been building a set of Data Loss Prevention (DLP) controls specifically designed for Copilot. Below is a quick overview of these related capabilities — ranging from already available to newly in preview — before we dive deep into today's GA announcement: Prevent Copilot processing of files & emails based on sensitivity labels In November 2024, Microsoft introduced the ability to create a DLP policy to restrict Microsoft 365 Copilot and Copilot Chat from processing sensitive files and emails using Sensitivity Labels for grounding data. This capability gives you control over whether content with the sensitivity labels you specify is restricted from being used in Microsoft 365 Copilot and Copilot Chat to generate summaries and responses. Prevent web searches for prompts containing Sensitive Information Types (SITs) The latest feature entering Public Preview is DLP for Microsoft 365 Copilot and Copilot Chat to prevent web searches for prompts containing sensitive data. This real-time control helps organizations mitigate data leakage and oversharing risks by preventing Microsoft 365 Copilot and agents from using sensitive data for external web searches. If a sensitive information type (SIT) is detected in a user prompt, Copilot can still leverage your enterprise data to form a response without sending the sensitive data to external search engines for web grounding. This capability extends to Microsoft 365 Copilot and agents built in Copilot Studio that are published to Microsoft 365 Copilot. DLP to Safeguard Copilot Prompts with Sensitive Information Types (SITs) The rest of this blog focuses on a key addition to this capability set: DLP for Microsoft 365 Copilot + Copilot Chat prompts to prevent processing of prompts containing sensitive information, now entering General Availability. Unlike the web search capability above, which prevents sensitive data from being sent externally during a web query, this capability evaluates the user’s text input directly, before processing occurs, to determine whether both enterprise data and web grounding can proceed. This feature uses Sensitive Information Types (SITs) as a condition within a Purview DLP policy to assess whether a user prompt sent to Copilot contains sensitive data, even if the data is unlabeled. With DLP for Copilot prompts, a user’s text input is scanned in real time for SITs, whether built-in (like Social Security Numbers, credit card numbers, etc.) or custom-defined by your organization (such as confidential terms or project names). If a text prompt contains one of the SITs you specify, Copilot restricts processing, halts any Graph or web grounding, and displays a clear message to the end user that the request cannot be completed. A user enters a prompt in Microsoft 365 Copilot Chat containing sensitive information. How DLP for Copilot Protects Prompts: Real-Time, Intelligent Protection The new DLP capability integrates seamlessly with Microsoft Purview, leveraging its powerful data classification & detection engine for sensitive information types. Here’s how it works: Input: When a user submits a prompt, Copilot checks the prompt for sensitive information using built-in or organization-defined sensitive information types (SITs). Immediate Action: If a SIT is detected, Copilot restricts the prompt from being processed. No AI response is generated, and no data is sent for Graph or web grounding. Output: Users receive a clear notification that their request cannot be completed due to company policies. This real-time protection ensures that sensitive data is not leaked or overshared, even as users explore new ways to work with AI. Setting Up DLP for Copilot Prompts: Data Security Admin Experience The easiest way to get started is through the new Microsoft Purview Data Security Posture Management (DSPM) portal, which provides a guided, one-click setup experience: 1. In Purview, go to Solutions > DSPM (preview) 2. Select the "Prevent data exposure in Microsoft 365 Copilot and Microsoft Copilot interactions" objective. 3. Follow the guided workflow and apply the recommended one-click DLP policy. The policy starts in simulation mode so you can review activity before enforcing it. Alternatively, you can configure and customize this policy directly from the Purview DLP portal Policies page or enable it from the Microsoft 365 Admin Center. view the remediation plan. view policy details and review. Then click the button, create a custom policy in DLP simulation mode to protect sensitive data referenced in Microsoft 365 Copilot and Microsoft Copilot. the confidence level and instance count. Practical Scenarios: Protecting What Matters Most Protect PII, financial data, and intellectual property: Financial institutions can block prompts containing deal terms, account numbers, or other sensitive data, preventing leaks through AI interactions. Similarly, healthcare organizations can safeguard patient information, and manufacturers can secure intellectual property and trade secrets from exposure, along with many other practical use cases. Once the prompt is detected and blocked, Microsoft Graph grounding and Bing web grounding is restricted. Safeguard sensitive non-public information: Imagine an organization involved in a confidential merger. By using DLP for Copilot prompts, administrators can set up a custom SIT that includes the project’s code name. If a user asks Copilot about the merger using the project’s code name, their request will be blocked, keeping sensitive information secure and protected. Visibility into DLP for M365 Copilot Prompts When a user’s prompt triggers a DLP policy, notifications and alerts are surfaced directly in the Microsoft Purview and Defender portals for security administrators. These alerts provide detailed information about which policy was activated, the type of sensitive information detected, and the context of the attempted Copilot interaction. Using these alert queues in Purview and Defender XDR, administrators can efficiently track policy activity, investigate potential incidents, and refine DLP rules to better align with organizational needs. The ability to review historical alerts and track ongoing enforcement empowers admins to maintain strong data security and proactively safeguard sensitive information. Defender XDR portal investigation of prompt DLP based incident. Takeaways The introduction of this latest enhancement to DLP for Copilot represents a key advancement in secure Copilot deployment and adoption. By empowering organizations to block sensitive data at the prompt level, Microsoft is helping customers unlock the full potential of Copilot, without compromising security or compliance. This innovation reflects Microsoft’s commitment to responsible AI, continuous improvement, and customer-driven development. As Copilot evolves, so will the tools to protect your data, ensuring that productivity and security go hand in hand. For more details, stay tuned for updates to the Product Roadmap and Learn documentation. Learn about using DLP to protect interactions with Microsoft 365 Copilot and Copilot Chat Learn about the default DLP policy for Microsoft 365 Copilot location | Microsoft Learn Permissions to create or edit a DLP policy to safeguard Microsoft 365 Copilot and Copilot Chat Learn about the new Microsoft Purview Data Security Posture Management (DSPM) | Microsoft Learn Roadmap Item: DLP for Microsoft 365 Copilot to safeguard prompts Roadmap Item: DLP to safeguard web search in Microsoft 365 CopilotWhy UK Enterprise Cybersecurity Is Failing in 2026 (And What Leaders Must Change)
Enterprise cybersecurity in large organisations has always been an asymmetric game. But with the rise of AI‑enabled cyber attacks, that imbalance has widened dramatically - particularly for UK and EMEA enterprises operating complex cloud, SaaS, and identity‑driven environments. Microsoft Threat Intelligence and Microsoft Defender Security Research have publicly reported a clear shift in how attackers operate: AI is now embedded across the entire attack lifecycle. Threat actors use AI to accelerate reconnaissance, generate highly targeted phishing at scale, automate infrastructure, and adapt tactics in real time - dramatically reducing the time required to move from initial access to business impact. In recent months, Microsoft has documented AI‑enabled phishing campaigns abusing legitimate authentication mechanisms, including OAuth and device‑code flows, to compromise enterprise accounts at scale. These attacks rely on automation, dynamic code generation, and highly personalised lures - not on exploiting traditional vulnerabilities or stealing passwords. The Reality Gap: Adaptive Attackers vs. Static Enterprise Defences Meanwhile, many UK enterprises still rely on legacy cybersecurity controls designed for a very different threat model - one rooted in a far more predictable world. This creates a dangerous "Resilience Gap." Here is why your current stack is failing- and the C-Suite strategy required to fix it. 1. The Failure of Traditional Antivirus in the AI Era Traditional antivirus (AV) relies on static signatures and hashes. It assumes malicious code remains identical across different targets. AI has rendered this assumption obsolete. Modern malware now uses automated mutation to generate unique code variants at execution time, and adapts behaviour based on its environment. Microsoft Threat Intelligence has observed threat actors using AI‑assisted tooling to rapidly rewrite payload components, ensuring that every deployment looks subtly different. In this model, there is no reliable signature to detect. By the time a pattern exists, the attacker has already moved on. Signature‑based detection is not just slow - it is structurally misaligned with AI‑driven attacks. The Risk: If your security relies on "recognising" a threat, you are already breached. By the time a signature exists, the attacker has evolved. The C-Suite Pivot: Shift investment from artifact detection to EDR/XDR (Extended Detection and Response). We must prioritise behavioural analytics and machine learning models that identify intent rather than file names. 2. Why Perimeter Firewalls Fail in a Cloud-First World Many UK enterprise still rely on firewalls enforcing static allow/deny rules based on IP addresses and ports. This model worked when applications were predictable and networks clearly segmented. Today, enterprise traffic is encrypted, cloud‑hosted, API‑driven, and deeply integrated with SaaS and identity services. AI‑assisted phishing campaigns abusing OAuth and device‑code flows demonstrate this clearly. From a network perspective, everything looks legitimate: HTTPS traffic to trusted identity providers. No suspicious port. No malicious domain. Yet the attacker successfully compromises identity. The Risk: Traditional firewalls are "blind" to identity-based breaches in cloud environments. The C-Suite Pivot: Move to Identity-First Security. Treat Identity as the new Control Plane, integrating signals like user risk, device health, and geolocation into every access decision. 3. The Critical Weakness of Single-Factor Authentication Despite clear NCSC guidance, single-factor passwords remain a common vulnerability in legacy applications and VPNs. AI-driven credential abuse has changed the economics of these attacks. Threat actors now deploy adaptive phishing campaigns that evolve in real-time. Microsoft has observed attackers using AI to hyper-target high-value UK identities- specifically CEOs, Finance Directors, and Procurement leads. The Risk: Static passwords are now the primary weak link in UK supply chain security. The C-Suite Pivot: Mandate Phishing‑resistant MFA (Passkeys or hardware security keys). Implement Conditional Access policies that evaluate risk dynamically at the moment of access, not just at login. Legacy Security vs. AI‑Era Reality 4. The Inherent Risk of VPN-Centric Security VPNs were built on a flawed assumption: that anyone "inside" the network is trustworthy. In 2026, this logic is a liability. AI-assisted attackers now use automation to map internal networks and identify escalation paths the moment they gain VPN access. Furthermore, Microsoft has tracked nation-state actors using AI to create synthetic employee identities- complete with fake resumes and deepfake communication. In these scenarios, VPN access isn't "hacked"; it is legally granted to a fraudster. The Risk: A compromised VPN gives an attacker the "keys to the kingdom." The C-Suite Pivot: Transition to Zero Trust Architecture (ZTA). Access must be explicit, scoped to the specific application, and continuously re‑evaluated using behavioural signals. 5. Data: The High-Velocity Target Sensitive data sitting unencrypted in legacy databases or backups is a ticking time bomb. In the AI era, data discovery is no longer a slow, manual process for a hacker. Attackers now use AI to instantly analyse your directory structures, classify your files, and prioritise high-value data for theft. Unencrypted data significantly increases your "blast radius," turning a containable incident into a catastrophic board-level crisis. The Risk: Beyond the technical breach, unencrypted data leads to massive UK GDPR fines and irreparable brand damage. The C-Suite Pivot: Adopt Data-Centric Security. Implement encryption by default, classify data while adding sensitivity labels and start board-level discussions regarding post‑quantum cryptography (PQC) to future-proof your most sensitive assets. 6. The Failure of Static IDS Traditional Intrusion Detection Systems (IDS) rely on known indicators of compromise - assuming attackers reuse the same tools and techniques. AI‑driven attacks deliberately avoid that assumption. Threat actors are now using Large Language Models (LLMs) to weaponize newly disclosed vulnerabilities within hours. While your team waits for a "known pattern" to be updated in your system, the attacker is already using a custom, AI-generated exploit. The Risk: Your team is defending against yesterday's news while the attacker is moving at machine speed. The C-Suite Pivot: Invest in Adaptive Threat Detection. Move toward Graph‑based XDR platforms that correlate signals across email, endpoint, and cloud to automate investigation and response before the damage spreads. From Static Security to Continuous Security Closing Thought: Security Is a Journey, Not a Destination For UK enterprises, the shift toward adaptive cybersecurity is no longer optional - it is increasingly driven by regulatory expectation, board oversight, and accountability for operational resilience. Recent UK cyber resilience reforms and evolving regulatory frameworks signal a clear direction of travel: cybersecurity is now a board‑level responsibility, not a back‑office technical concern. Directors and executive leaders are expected to demonstrate effective governance, risk ownership, and preparedness for cyber disruption - particularly as AI reshapes the threat landscape. AI is not a future cybersecurity problem. It is a current force multiplier for attackers, exposing the limits of legacy enterprise security architectures faster than many organisations are willing to admit. The uncomfortable truth for boards in 2026 is that no enterprise is 100% secure. Intrusions are inevitable. Credentials will be compromised. Controls will be tested. The difference between a resilient enterprise and a vulnerable one is not the absence of incidents, but how risk is managed when they occur. In mature organisations, this means assuming breach and designing for containment: Access controls that limit blast radius Least privilege and conditional access restricting attackers to the smallest possible scope if an identity is compromised Data‑centric security using automated classification and encryption, ensuring that even when access is misused, sensitive data cannot be freely exfiltrated As a Senior Enterprise Cybersecurity Architect, I see this moment as a unique opportunity. AI adoption does not have to repeat the mistakes of earlier technology waves, where innovation moved fast and security followed years later. We now have a rare chance to embed security from day one - designing identity controls, data boundaries, automated monitoring, and governance before AI systems become business‑critical. When security is built in upfront, enterprises don’t just reduce risk - they gain the confidence to move faster and unlock AI’s value safely. Security is no longer a “department”. In the age of AI, it is a continuous business function - essential to preserving trust and maintaining operational continuity as attackers move at machine speed. References: Inside an AI‑enabled device code phishing campaign | Microsoft Security Blog AI as tradecraft: How threat actors operationalize AI | Microsoft Security Blog Detecting and analyzing prompt abuse in AI tools | Microsoft Security Blog Post-Quantum Cryptography | CSRC Microsoft Digital Defense Report 2025 | Microsoft https://www.ncsc.gov.uk/news/government-adopt-passkey-technology-digital-services
Credential Exposure Risk & Response Workbook
How to set up the Workbook Use the steps outlined in the Identify and Remediate Credentials article to get the right rules in place to start capturing credential data. You may choose to use custom regex patterns or more specific SITs that align with your scenario. This workbook will help you once that is done. This workbook transforms credential leakage detection into a measurable, executive-ready capability. End‑to‑end situational awareness: Correlates alerts across workloads, departments, credential types, and users to surface material exposure quickly. Actionable triage & forensics: Drill from trends to the artifact (message/file/URL), accelerating containment and root‑cause analysis. Risk‑aligned decisions: Quantifies exposure and response performance (creation vs. resolution trends) to guide investment and policy changes. Audit‑ready governance: Captures decisions, timelines, and outcomes for PCI/PII controls, identity hygiene, and secrets management. Prerequisites License requirements for Microsoft Purview Information Protection depend on the scenarios and features you use. To understand your licensing requirements and options for Microsoft Purview Information Protection, see the Information Protection sections from Microsoft 365 guidance for security & compliance and the related PDF download for feature-level licensing requirements. Before you start, all endpoint interaction with Sensitive content is already being included in the audit logging with Endpoint DLP enabled (Endpoint DLP must be enabled). For Microsoft 365 SharePoint, OneDrive Exchange, and Teams you can enable policies that generate events but not incidents for important sensitive information types. Install Power BI Desktop to make use of the templates Downloads - Microsoft Power BI Step-by-step guided walkthrough In this guide, we will provide high-level steps to get started using the new tooling. Get the latest version of the report that you are interested in. In this case, we will show the Board report. Open the report. If Power BI Desktop is installed, it should look like this: 3. You must authenticate with the https://api.security.microsoft.com, select Organizational account, and sign in. Then click Connect. 4. You will also have to authenticate with httpps://api.security.microsoft.com/api/advancedhunting, select Organizational account, and sign in. Then click Connect. What the Workbook Delivers The workbook moves programs to something that is measurable. Combined with customers' outcome‑based metrics (operational risk, control risk, end‑user impact), it enables an executive‑level, data‑driven narrative for investment and policy decisions. End‑to‑end situational awareness: Correlates alerts across workloads, departments, credential types, and users to surface material exposure quickly. Actionable triage & forensics: Drill from trends to the artifact (message/file/URL), accelerating containment and root‑cause analysis. Risk‑aligned decisions: Quantifies exposure and response performance (creation vs. resolution trends) to guide investment and policy changes. Audit‑ready governance: Captures decisions, timelines, and outcomes for PCI/PII controls, identity hygiene, and secrets management. Troubleshooting tips: If you are receiving a (400): Bad request error, it is likely that you do not have the necessary tables from the endpoint in Advanced Hunting. Those errors may also show if there are empty values passed from the left-hand side of the KQL queries. Detection trend Apply filtering to this view based on the DLP policies that monitor credentials. Trend Analysis Over Time Displays daily detection counts, helping identify spikes in credential leakage activity and enabling proactive investigation. Workload and Credential Type Breakdown Shows which workloads (e.g., Endpoint, Exchange, OneDrive) and credential types are most affected, guiding targeted security measures. Detection Source Visibility Highlight which security tools (Sentinel, Cloud App Security, Defender) are catching leaks, ensuring monitoring coverage, and identifying gaps. Detailed Credential Exposure Lists exposed credentials for quick validation and remediation, reducing the risk of misuse or compromise. (This part is dependent on the AI component) Supports Incident Response Enables rapid triage by correlating detection trends with specific credentials and sources, improving response times. Compliance and Audit Readiness Provides clear evidence of credential monitoring and leakage detection for regulatory and governance reporting. Credential incident trends Lifecycle Tracking of Credential Alerts Visualizes creation and resolution trends over time, helping teams measure response efficiency and identify periods of heightened risk. Workload and Credential Type Breakdown Shows which workloads (Endpoint, Exchange, OneDrive) and credential types are most impacted, enabling targeted mitigation strategies. Incident Type Analysis Highlights the distribution of alerts by category (e.g., CredRisk, Agent), supporting prioritization of critical incidents. Detailed Alert Context Provides message IDs and associated credentials for precise investigation and remediation, reducing time to contain threats. Performance and SLA Monitoring Tracks resolution timelines to ensure compliance with internal security SLAs and regulatory requirements. Audit and Governance Support Offers clear evidence of alert handling and closure, strengthening accountability and reporting. Content view Workload-Level Risk Visibility Highlights which workloads (e.g., SharePoint, Endpoint) have the highest credential exposure, enabling targeted security hardening. Departmental Risk Breakdown Shows which departments (Security, Logistics, Sales) are most impacted, helping prioritise remediation for critical business areas. Credential Type Analysis Identifies exposed credential types such as API keys, shared access keys, and tokens, guiding policy enforcement and rotation strategies. User and Document Correlation Links exposed credentials to specific users and documents, supporting rapid investigation and containment of leaks. Comprehensive Drill-Down Enables navigation from department → credential type → user → document for precise root cause analysis. Governance and Compliance Support Provides auditable evidence of credential exposure across workloads and departments, strengthening regulatory reporting. For endpoint, this view is an excellent way to catch applications that are not treating secrets in a safe way and expose them in temporary files. Force-directed graph Visual Alert Correlation Displays a force-directed graph linking users to alert categories, making it easy to identify patterns and clusters of credential-related risks. High-Risk User Identification Highlights users with multiple or severe alerts, enabling prioritisation for investigation and remediation. Credential Type and Department Context Shows which credential types and departments are most associated with alerts, supporting targeted security measures. Alert Severity and Details Provides a detailed table of alerts with severity and category, helping analysts quickly assess impact and urgency. Improved Threat Hunting Enables analysts to trace relationships between users, alert types, and credential exposure for deeper root cause analysis. Compliance and Reporting Offers clear evidence of monitoring and categorisation of credential-related alerts for governance and audit purposes. Security incidents correlated to credential leakage Focused on Credential Leakage Provides a dedicated view of alerts related to exposed credentials, enabling quick detection and response. Role-Based Risk Analysis Breaks down incidents by department and role, helping prioritise remediation for high-risk groups such as developers and security teams. User-Level Investigation Allows drill-down to individual users involved in credential-related alerts for rapid containment and corrective action. Credential Type Insights Highlight which types of credentials (e.g., API keys, passwords) are most vulnerable, guiding policy improvements and rotation strategies. Alert Source Correlation Displays which security tools (Sentinel, MCAS, Defender) are detecting leaks, ensuring coverage and identifying monitoring gaps. Compliance and Governance Support Offers auditable evidence of credential monitoring, supporting regulatory and internal security requirements. App and Network correlated to credential leakage For network detection, adjust the query in production to remove standard applications if they are too noisy. We have seen cases where Word and other commonly used applications make calls using FTP services as an example. While other applications may add too much noise. Token Detection Event Traceability Shows detected Token credentials events linked directly to individual User IDs and Device IDs for investigation. Application Usage Context Identifies that the detected activity is associated with the application ms‑teams.exe as an example. External URL Association Displays the Remote URL connected to the token detection event. Remote IP Visibility Lists the Remote IP addresses associated with the activity. Entity-Level Correlation Links UserId, DeviceId, Application, Remote URL, and Remote IP within a single event flow. You can select port used or how Apps are linked as well. Detection Count Aggregation Summarises the number of credential events tied to each correlated entity path. Turn detection into decisions. Deploy the workbook today to get measurable insights, accelerate triage, and deliver audit-ready governance. Start driving risk-aligned investment and policy changes with confidence. The PBI report is located here. Based on what you identify, you may be using tools such as Data Security Investigations to go deeper. We are also working on surfacing the AI triaging in a context that will enrich the DLP analyst experience.Authorization and Governance for AI Agents: Runtime Authorization Beyond Identity at Scale
Designing Authorization‑Aware AI Agents at Scale Enforcing Runtime RBAC + ABAC with Approval Injection (JIT) Microsoft Entra Agent Identity enables organizations to govern and manage AI agent identities in Copilot Studio, improving visibility and identity-level control. However, as enterprises deploy multiple autonomous AI agents, identity and OAuth permissions alone cannot answer a more critical question: “Should this action be executed now, by this agent, for this user, under the current business and regulatory context?” This post introduces a reusable Authorization Fabric—combining a Policy Enforcement Point (PEP) and Policy Decision Point (PDP)—implemented as a Microsoft Entra‑protected endpoint using Azure Functions/App Service authentication. Every AI agent (Copilot Studio or AI Foundry/Semantic Kernel) calls this fabric before tool execution, receiving a deterministic runtime decision: ALLOW / DENY / REQUIRE_APPROVAL / MASK Who this is for Anyone building AI agents (Copilot Studio, AI Foundry/Semantic Kernel) that call tools, workflows, or APIs Organizations scaling to multiple agents and needing consistent runtime controls Teams operating in regulated or security‑sensitive environments, where decisions must be deterministic and auditable Why a V2? Identity is necessary—runtime authorization is missing Entra Agent Identity (preview) integrates Copilot Studio agents with Microsoft Entra so that newly created agents automatically get an Entra agent identity, manageable in the Entra admin center, and identity activity is logged in Entra. That solves who the agent is and improves identity governance visibility. But multi-agent deployments introduce a new risk class: Autonomous execution sprawl — many agents, operating with delegated privileges, invoking the same backends independently. OAuth and API permissions answer “can the agent call this API?” They do not answer “should the agent execute this action under business policy, compliance constraints, data boundaries, and approval thresholds?” This is where a runtime authorization decision plane becomes essential. The pattern: Microsoft Entra‑Protected Authorization Fabric (PEP + PDP) Instead of embedding RBAC logic independently inside every agent, use a shared fabric: PEP (Policy Enforcement Point): Gatekeeper invoked before any tool/action PDP (Policy Decision Point): Evaluates RBAC + ABAC + approval policies Decision output: ALLOW / DENY / REQUIRE_APPROVAL / MASK This Authorization Fabric functions as a shared enterprise control plane, decoupling authorization logic from individual agents and enforcing policies consistently across all autonomous execution paths. Architecture (POC reference architecture) Use a single runtime decision plane that sits between agents and tools. What’s important here Every agent (Copilot Studio or AI Foundry/SK) calls the Authorization Fabric API first The fabric is a protected endpoint (Microsoft Entra‑protected endpoint required) Tools (Graph/ERP/CRM/custom APIs) are invoked only after an ALLOW decision (or approval) Trust boundaries enforced by this architecture Agents never call business tools directly without a prior authorization decision The Authorization Fabric validates caller identity via Microsoft Entra Authorization decisions are centralized, consistent, and auditable Approval workflows act as a runtime “break-glass” control for high-impact actions This ensures identity, intent, and execution are independently enforced, rather than implicitly trusted. Runtime flow (Decision → Approval → Execution) Here is the runtime sequence as a simple flow (you can keep your Mermaid diagram too). ```mermaid flowchart TD START(["START"]) --> S1["[1] User Request"] S1 --> S2["[2] Agent Extracts Intent\n(action, resource, attributes)"] S2 --> S3["[3] Call /authorize\n(Entra protected)"] S3 --> S4 subgraph S4["[4] PDP Evaluation"] ABAC["ABAC: Tenant · Region · Data Sensitivity"] RBAC["RBAC: Entitlement Check"] Threshold["Approval Threshold"] ABAC --> RBAC --> Threshold end S4 --> Decision{"[5] Decision?"} Decision -->|"ALLOW"| Exec["Execute Tool / API"] Decision -->|"MASK"| Masked["Execute with Masked Data"] Decision -->|"DENY"| Block["Block Request"] Decision -->|"REQUIRE_APPROVAL"| Approve{"[6] Approval Flow"} Approve -->|"Approved"| Exec Approve -->|"Rejected"| Block Exec --> Audit["[7] Audit & Telemetry"] Masked --> Audit Block --> Audit Audit --> ENDNODE(["END"]) style START fill:#4A90D9,stroke:#333,color:#fff style ENDNODE fill:#4A90D9,stroke:#333,color:#fff style S1 fill:#5B5FC7,stroke:#333,color:#fff style S2 fill:#5B5FC7,stroke:#333,color:#fff style S3 fill:#E8A838,stroke:#333,color:#fff style S4 fill:#FFF3E0,stroke:#E8A838,stroke-width:2px style ABAC fill:#FCE4B2,stroke:#999 style RBAC fill:#FCE4B2,stroke:#999 style Threshold fill:#FCE4B2,stroke:#999 style Decision fill:#fff,stroke:#333 style Exec fill:#2ECC71,stroke:#333,color:#fff style Masked fill:#27AE60,stroke:#333,color:#fff style Block fill:#C0392B,stroke:#333,color:#fff style Approve fill:#F39C12,stroke:#333,color:#fff style Audit fill:#3498DB,stroke:#333,color:#fff ``` Design principle: No tool execution occurs until the Authorization Fabric returns ALLOW or REQUIRE_APPROVAL is satisfied via an approval workflow. Where Power Automate fits (important for readers) In most Copilot Studio implementations, Agents calls Power Automate (agent flows), is the practical integration layer that calls enterprise services and APIs. Copilot Studio supports “agent flows” as a way to extend agent capabilities with low-code workflows. For this pattern, Power Automate typically: acquires/uses the right identity context for the call (depending on your tenant setup), and calls the /authorize endpoint of the Authorization Fabric, returns the decision payload to the agent for branching. Copilot Studio also supports calling REST endpoints directly using the HTTP Request node, including passing headers such as Authorization: Bearer <token>. Protected endpoint only: Securing the Authorization Fabric with Microsoft Entra For this V2 pattern, the Authorization Fabric must be protected using Microsoft Entra‑protected endpoint on Azure Functions/App Service (built‑in auth). Microsoft Learn provides the configuration guidance for enabling Microsoft Entra as the authentication provider for Azure App Service / Azure Functions. Step 1 — Create the Authorization Fabric API (Azure Function) Expose an authorization endpoint: HTTP Step 2 — Enable Microsoft Entra‑protected endpoint on the Function App In Azure Portal: Function App → Authentication Add identity provider → Microsoft Choose Workforce configuration (enterprise tenant) Set Require authentication for all requests This ensures the Authorization Fabric is not callable without a valid Entra token. Step 3 — Optional hardening (recommended) Depending on enterprise posture, layer: IP restrictions / Private endpoints APIM in front of the Function for rate limiting, request normalization, centralized logging (For a POC, keep it minimal—add hardening incrementally.) Externalizing policy (so governance scales) To make this pattern reusable across multiple agents, policies should not be hardcoded inside each agent. Instead, store policy definitions in a central policy store such as Cosmos DB (or equivalent configuration store), and have the PDP load/evaluate policies at runtime. Why this matters: Policy changes apply across all agents instantly (no agent republish) Central governance + versioning + rollback becomes possible Audit and reporting become consistent across environments (For the POC, a single JSON document per policy pack in Cosmos DB is sufficient. For production, add versioning and staged rollout.) Store one PolicyPack JSON document per environment (dev/test/prod). Include version, effectiveFrom, priority for safe rollout/rollback. Minimal decision contract (standard request / response) To keep the fabric reusable across agents, standardize the request payload. Request payload (example) Decision response (deterministic) Example scenario (1 minute to understand) Scenario: A user asks a Finance agent to create a Purchase Order for 70,000. Even if the user has API permission and the agent can technically call the ERP API, runtime policy should return: REQUIRE_APPROVAL (threshold exceeded) trigger an approval workflow execute only after approval is granted This is the difference between API access and authorized business execution. Sample Policy Model (RBAC + ABAC + Approval) This POC policy model intentionally stays simple while demonstrating both coarse and fine-grained governance. 1) Coarse‑grained RBAC (roles → actions) FinanceAnalyst CreatePO up to 50,000 ViewVendor FinanceManager CreatePO up to 100,000 and/or approve higher spend 2) Fine‑grained ABAC (conditions at runtime) ABAC evaluates context such as region, classification, tenant boundary, and risk: 3) Approval injection (Agent‑level JIT execution) For higher-risk/high-impact actions, the fabric returns REQUIRE_APPROVAL rather than hard deny (when appropriate): How policies should be evaluated (deterministic order) To ensure predictable and auditable behavior, evaluate in a deterministic order: Tenant isolation & residency (ABAC hard deny first) Classification rules (deny or mask) RBAC entitlement validation Threshold/risk evaluation Approval injection (JIT step-up) This prevents approval workflows from bypassing foundational security boundaries such as tenant isolation or data sovereignty. Copilot Studio integration (enforcing runtime authorization) Copilot Studio can call external REST APIs using the HTTP Request node, including passing headers such as Authorization: Bearer <token> and binding response schema for branching logic. Copilot Studio also supports using flows with agents (“agent flows”) to extend capabilities and orchestrate actions. Option A (Recommended): Copilot Studio → Agent Flow (Power Automate) → Authorization Fabric Why: Flows are a practical place to handle token acquisition patterns, approval orchestration, and standardized logging. Topic flow: Extract user intent + parameters Call an agent flow that: calls /authorize returns decision payload Branch in the topic: If ALLOW → proceed to tool call If REQUIRE_APPROVAL → trigger approval flow; proceed only if approved If DENY → stop and explain policy reason Important: Tool execution must never be reachable through an alternate topic path that bypasses the authorization check. Option B: Direct HTTP Request node to Authorization Fabric Use the Send HTTP request node to call the authorization endpoint and branch using the response schema. This approach is clean, but token acquisition and secure secretless authentication are often simpler when handled via a managed integration layer (flow + connector). AI Foundry / Semantic Kernel integration (tool invocation gate) For Foundry/SK agents, the integration point is before tool execution. Semantic Kernel supports Azure AI agent patterns and tool integration, making it a natural place to enforce a pre-tool authorization check. Pseudo-pattern: Agent extracts intent + context Calls Authorization Fabric Enforces decision Executes tool only when allowed (or after approval) Telemetry & audit (what Security Architects will ask for) Even the best policy engine is incomplete without audit trails. At minimum, log: agentId, userUPN, action, resource decision + reason + policyIds approval outcome (if any) correlationId for downstream tool execution Why it matters: you now have a defensible answer to: “Why did an autonomous agent execute this action?” Security signal bonus: Denials, unusual approval rates, and repeated policy mismatches can also indicate prompt injection attempts, mis-scoped agents, or governance drift. What this enables (and why it scales) With a shared Authorization Fabric: Avoid duplicating authorization logic across agents Standardize decisions across Copilot Studio + Foundry agents Update governance once (policy change) and apply everywhere Make autonomy safer without blocking productivity Closing: Identity gets you who. Runtime authorization gets you whether/when/how. Copilot Studio can automatically create Entra agent identities (preview), improving identity governance and visibility for agents. But safe autonomy requires a runtime decision plane. Securing that plane as an Entra-protected endpoint is foundational for enterprise deployments. In enterprise environments, autonomous execution without runtime authorization is equivalent to privileged access without PIM—powerful, fast, and operationally risky.Authorization and Identity Governance Inside AI Agents
Designing Authorization‑Aware AI Agents Enforcing Microsoft Entra ID RBAC in Copilot Studio As AI agents move from experimentation to enterprise execution, authorization becomes the defining line between innovation and risk. AI agents are rapidly evolving from experimental assistants into enterprise operators—retrieving user data, triggering workflows, and invoking protected APIs. While many early implementations rely on prompt‑level instructions to control access, regulated enterprise environments require authorization to be enforced by identity systems, not language models. This article presents a production‑ready, identity‑first architecture for building authorization‑aware AI agents using Copilot Studio, Power Automate, Microsoft Entra ID, and Microsoft Graph, ensuring every agent action executes strictly within the requesting user’s permissions. Why Prompt‑Level Security Is Not Enough Large Language Models interpret intent—they do not enforce policy. Even the most carefully written prompts cannot: Validate Microsoft Entra ID group or role membership Reliably distinguish delegated user identity from application identity Enforce deterministic access decisions Produce auditable authorization outcomes Relying on prompts for authorization introduces silent security failures, over‑privileged access, and compliance gaps—particularly in Financial Services, Healthcare, and other regulated industries. Authorization is not a reasoning problem. It is an identity enforcement problem. Common Authorization Anti‑Patterns in AI Agents The following patterns frequently appear in early AI agent implementations and should be avoided in enterprise environments: Hard‑coded role or group checks embedded in prompts Trusting group names passed as plain‑text parameters Using application permissions for user‑initiated actions Skipping verification of the user’s Entra ID identity Lacking an auditable authorization decision point These approaches may work in demos, but they do not survive security reviews, compliance audits, or real‑world misuse scenarios. Authorization‑Aware Agent Architecture In an authorization‑aware design, the agent never decides access. Authorization is enforced externally, by identity‑aware workflows that sit outside the language model’s reasoning boundary. High‑Level Flow The Copilot Studio agent receives a user request The agent passes the User Principal Name (UPN) and intended action A Power Automate flow validates permissions using Microsoft Entra ID via Microsoft Graph Only authorized requests are allowed to proceed Unauthorized requests fail fast with a deterministic outcome Authorization‑aware Copilot Studio architecture enforces Entra ID RBAC before executing any business action. The agent orchestrates intent. Identity systems enforce access. Enforcing Entra ID RBAC with Microsoft Graph Power Automate acts as the authorization enforcement layer: Resolve user identity from the supplied UPN Retrieve group or role memberships using Microsoft Graph Normalize and compare memberships against approved RBAC groups Explicitly deny execution when authorization fails This keeps authorization logic: Centralized Deterministic Auditable Independent of the AI model Reference Implementation: Power Automate RBAC Enforcement Flow The following import‑ready Power Automate cloud flow demonstrates a secure RBAC enforcement pattern for Copilot Studio agents. It validates Microsoft Entra ID group membership before allowing any business action. Scenario Trigger: User‑initiated agent action Identity model: Delegated user identity Input: userUPN, requestedAction Outcome: Authorized or denied based on Entra ID RBAC { "$schema": "https://schema.management.azure.com/providers/Microsoft.Logic/schemas/2016-06-01/workflowdefinition.json#", "contentVersion": "1.0.0.0", "triggers": { "Copilot_Request": { "type": "Request", "kind": "Http", "inputs": { "schema": { "type": "object", "properties": { "userUPN": { "type": "string" }, "requestedAction": { "type": "string" } }, "required": [ "userUPN" ] } } } }, "actions": { "Get_User_Groups": { "type": "Http", "inputs": { "method": "GET", "uri": "https://graph.microsoft.com/v1.0/users/@{triggerBody()?['userUPN']}/memberOf?$select=displayName", "authentication": { "type": "ManagedServiceIdentity" } } }, "Normalize_Group_Names": { "type": "Select", "inputs": { "from": "@body('Get_User_Groups')?['value']", "select": { "groupName": "@toLower(item()?['displayName'])" } }, "runAfter": { "Get_User_Groups": [ "Succeeded" ] } }, "Check_Authorization": { "type": "Condition", "expression": "@contains(body('Normalize_Group_Names'), 'ai-authorized-users')", "runAfter": { "Normalize_Group_Names": [ "Succeeded" ] }, "actions": { "Authorized_Action": { "type": "Compose", "inputs": "User authorized via Entra ID RBAC" } }, "else": { "actions": { "Access_Denied": { "type": "Terminate", "inputs": { "status": "Failed", "message": "Access denied. User not authorized via Entra ID RBAC." } } } } } } } This pattern enforces authorization outside the agent, aligns with Zero Trust principles, and creates a clear audit boundary suitable for enterprise and regulated environments. Flow Diagram: Agent Integrated with RBAC Authorization Flow and Sample Prompt Execution: Delegated vs Application Permissions Scenario Recommended Permission Model User‑initiated agent actions Delegated permissions Background or system automation Application permissions Using delegated permissions ensures agent execution remains strictly within the requesting user’s identity boundary. Auditing and Compliance Benefits Deterministic and explainable authorization decisions Centralized enforcement aligned with identity governance Clear audit trails for security and compliance reviews Readiness for SOC, ISO, PCI, and FSI assessments Enterprise Security Takeaways Authorization belongs in Microsoft Entra ID, not prompts AI agents must respect enterprise identity boundaries Copilot Studio + Power Automate + Microsoft Graph enable secure‑by‑design AI agents By treating AI agents as first‑class enterprise actors and enforcing authorization at the identity layer, organizations can scale AI adoption with confidence, trust, and compliance.
