Cybersecurity: What Every Business Leader Needs to Know Now
As a Senior Cybersecurity Solution Architect, I’ve had the privilege of supporting organisations across the United Kingdom, Europe, and the United States—spanning sectors from finance to healthcare—in strengthening their security posture. One thing has become abundantly clear: cybersecurity is no longer the sole domain of IT departments. It is a strategic imperative that demands attention at board-level. This guide distils five key lessons drawn from real-world engagements to help executive leaders navigate today’s evolving threat landscape. These insights are not merely technical—they are cultural, operational, and strategic. If you’re a C-level executive, this article is a call to action: reassess how your organisation approaches cybersecurity before the next breach forces the conversation. In this article, I share five lessons (and quotes) from the field that help demystify how to enhance an organisation’s security posture. 1. Shift the Mindset “This has always been our approach, and we’ve never experienced a breach—so why should we change it?” A significant barrier to effective cybersecurity lies not in the sophistication of attackers, but in the predictability of human behaviour. If you’ve never experienced a breach, it’s tempting to maintain the status quo. However, as threats evolve, so too must your defences. Many cyber threats exploit well-known vulnerabilities that remain unpatched or rely on individuals performing routine tasks in familiar ways. Human nature tends to favour comfort and habit—traits that adversaries are adept at exploiting. Unlike many organisations, attackers readily adopt new technologies to advance their objectives, including AI-powered ransomware to execute increasingly sophisticated attacks. It is therefore imperative to recognise—without delay—that the advent of AI has dramatically reduced both the effort and time required to compromise systems. As the UK’s National Cyber Security Centre (NCSC) has stated: “AI lowers the barrier for novice cyber criminals, hackers-for-hire and hacktivists to carry out effective access and information gathering operations. This enhanced access will likely contribute to the global ransomware threat over the next two years.” Similarly, McKinsey & Company observed: “As AI quickly advances cyber threats, organisations seem to be taking a more cautious approach, balancing the benefits and risks of the new technology while trying to keep pace with attackers’ increasing sophistication.” To counter this evolving threat landscape, organisations must proactively leverage AI in their cyber defence strategies. Examples include: Identity and Access Management (IAM): AI enhances IAM by analysing real-time signals across systems to detect risky sign-ins and enforce adaptive access controls. Example: Microsoft Entra Agents for Conditional Access use AI to automate policy recommendations, streamlining access decisions with minimal manual input. Figure 1: Microsoft Entra Agents Threat Detection: AI accelerates detection, response, and recovery, helping organisations stay ahead of sophisticated threats. Example: Microsoft Defender for Cloud’s AI threat protection identifies prompt injection, data poisoning, and wallet attacks in real time. Incident Response: AI facilitates real-time decision-making, removing emotional bias and accelerating containment and recovery during security incidents. Example: Automatic Attack Disruption in Defender XDR, which can automatically contain a breach in progress. AI Security Posture Management AI workloads require continuous discovery, classification, and protection across multi-cloud environments. Example: Microsoft Defender for Cloud’s AI Security Posture Management secures custom AI apps across Azure, AWS, and GCP by detecting misconfigurations, vulnerabilities, and compliance gaps. Data Security Posture Management (DSPM) for AI AI interactions must be governed to ensure privacy, compliance, and insider risk mitigation. Example: Microsoft Purview DSPM for AI enables prompt auditing, applies Data Loss Prevention (DLP) policies to third-party AI apps like ChatGPT, and supports eDiscovery and lifecycle management. AI Threat Protection Organisations must address emerging AI threat vectors, including prompt injection, data leakage, and model exploitation. Example: Defender for AI (private preview) provides model-level security, including governance, anomaly detection, and lifecycle protection. Embracing innovation, automation, and intelligent defence is the secret sauce for cyber resilience in 2026. 2. Avoid One-Off Purchases – Invest with a Strategy “One MDE and one Sentinel to go, please.” Organisations often approach me intending to purchase a specific cybersecurity product—such as Microsoft Defender for Endpoint (MDE)—without a clearly articulated strategic rationale. My immediate question is: what is the broader objective behind this purchase? Is it driven by perceived value or popularity, or does it form part of a well-considered strategy to enhance endpoint security? Cybersecurity investments should be guided by a long-term, holistic strategy that spans multiple years and is periodically reassessed to reflect evolving threats. Strengthening endpoint protection must be integrated into a wider effort to improve the organisation’s overall security posture. This includes ensuring seamless integration between security solutions and avoiding operational silos. For example, deploying robust endpoint protection is of limited value if identities are not safeguarded with multi-factor authentication (MFA), or if storage accounts remain publicly accessible. A cohesive and forward-looking approach ensures that all components of the security architecture work in concert to mitigate risk effectively. Security Adoption Journey (Based on Zero Trust Framework) Assess – Evaluate the threat landscape, attack surface, vulnerabilities, compliance obligations, and critical assets. Align – Link security objectives to broader business goals to ensure strategic coherence. Architect – Design integrated and scalable security solutions, addressing gaps and eliminating operational silos. Activate – Implement tools with robust governance and automation to ensure consistent policy enforcement. Advance – Continuously monitor, test, and refine the security posture to stay ahead of evolving threats. Security tools are not fast food—they work best as part of a long-term plan, not a one-off order. This piecemeal approach runs counter to the modern Zero Trust security model, which assumes no single tool will prevent every breach and instead implements layered defences and integration. 3. Legacy Systems Are Holding You Back “Unfortunately, we are unable to implement phishing-resistant MFA, as our legacy app does not support integration with the required protocols.” A common challenge faced by many organisations I have worked with is the constraint on innovation within their cybersecurity architecture, primarily due to continued reliance on legacy applications—often driven by budgetary or operational necessity. These outdated systems frequently lack compatibility with modern security technologies and may introduce significant vulnerabilities. A notable example is the deployment of phishing-resistant multi-factor authentication (MFA)—such as FIDO2 security keys or certificate-based authentication—which requires advanced identity protocols and conditional access policies. These capabilities are available exclusively through Microsoft Entra ID. To address this issue effectively, it is essential to design security frameworks based on the organisation’s future aspirations rather than its current limitations. By adopting a forward-thinking approach, organisations can remain receptive to emerging technologies that align with their strategic cybersecurity objectives. Moreover, this perspective encourages investment in acquiring the necessary talent, thereby reducing reliance on extensive change management and staff retraining. I advise designing for where you want to be in the next 1–3 years—ideally cloud-first and identity-driven—essentially adopting a Zero Trust architecture, rather than being constrained by the limitations of legacy systems. 4. Collaboration Is a Security Imperative “This item will need to be added to the dev team's backlog. Given their current workload, they will do their best to implement GitHub Security in Q3, subject to capacity.” Cybersecurity threats may originate from various parts of an organisation, and one of the principal challenges many face is the fragmented nature of their defence strategies. To effectively mitigate such risks, cybersecurity must be embedded across all departments and functions, rather than being confined to a single team or role. In many organisations, the Chief Information Security Officer (CISO) operates in isolation from other C-level executives, which can limit their influence and complicate the implementation of security measures across the enterprise. Furthermore, some teams may lack the requisite expertise to execute essential security practices. For instance, an R&D lead responsible for managing developers may not possess the necessary skills in DevSecOps. To address these challenges, it is vital to ensure that the CISO is empowered to act without political or organisational barriers and is supported in implementing security measures across all business units. When the CISO has backing from the COO and HR, initiatives such as MFA rollout happen faster and more thoroughly. Cross-Functional Security Responsibilities Role Security Responsibilities R&D - Adopt DevSecOps practices - Identify vulnerabilities early - Manage code dependencies - Detect exposed secrets - Embed security in CI/CD pipelines CIO - Ensure visibility over organizational data - Implement Data Loss Prevention (DLP) - Safeguard sensitive data lifecycle - Ensure regulatory compliance CTO - Secure cloud environments (CSPM) - Manage SaaS security posture (SSPM) - Ensure hardware and endpoint protection COO - Protect digital assets - Secure domain management - Mitigate impersonation threats - Safeguard digital marketing channels and customer PII Support & Vendors - Deliver targeted training - Prevent social engineering attacks - Improve awareness of threat vectors HR - Train employees on AI-related threats - Manage insider risks - Secure employee data - Oversee cybersecurity across the employee lifecycle Empowering the CISO to act across departments helps organisations shift towards a security-first culture—embedding cybersecurity into every function, not just IT. 5. Compliance Is Not Security “We’re compliant, so we must be secure.” Many organisations mistakenly equate passing audits—such as ISO 27001 or SOC 2—with being secure. While compliance frameworks help establish a baseline for security, they are not a guarantee of protection. Determined attackers are not deterred by audit checklists; they exploit gaps, misconfigurations, and human error regardless of whether an organisation is certified. Moreover, due to the rapidly evolving nature of the cyber threat landscape, compliance frameworks often struggle to keep pace. By the time a standard is updated, attackers may already be exploiting new techniques that fall outside its scope. This lag creates a false sense of security for organisations that rely solely on regulatory checkboxes. Security is a continuous risk management process—not a one-time certification. It must be embedded into every layer of the enterprise and treated with the same urgency as other core business priorities. Compliance may be the starting line, not the finish line. Effective security goes beyond meeting regulatory requirements—it demands ongoing vigilance, adaptability, and a proactive mindset. Conclusion: Cybersecurity Is a Continuous Discipline Cybersecurity is not a destination—it is a continuous journey. By embracing strategic thinking, cross-functional collaboration, and emerging technologies, organisations can build resilience against today’s threats and tomorrow’s unknowns. The lessons shared throughout this article are not merely technical—they are cultural, operational, and strategic. If there is one key takeaway, it is this: avoid piecemeal fixes and instead adopt an integrated, future-ready security strategy. Due to the rapidly evolving nature of the cyber threat landscape, compliance frameworks alone cannot keep pace. Security must be treated as a dynamic, ongoing process—one that is embedded into every layer of the enterprise and reviewed regularly. Organisations should conduct periodic security posture reviews, leveraging tools such as Microsoft Secure Score or monthly risk reports, and stay informed about emerging threats through threat intelligence feeds and resources like the Microsoft Digital Defence Report, CISA (Cybersecurity and Infrastructure Security Agency), NCSC (UK National Cyber Security Centre), and other open-source intelligence platforms. As Ann Johnson aptly stated in her blog: “The most prepared organisations are those that keep asking the right questions and refining their approach together.” Cyber resilience demands ongoing investment—in people (through training and simulation drills), in processes (via playbooks and frameworks), and in technology (through updates and adoption of AI-driven defences). To reduce cybersecurity risk over time, resilient organisations must continually refine their approach and treat cybersecurity as an ongoing discipline. The time to act is now. Resources: https://www.ncsc.gov.uk/report/impact-of-ai-on-cyber-threat Defend against cyber threats with AI solutions from Microsoft - Microsoft Industry Blogs Generative AI Cybersecurity Solutions | Microsoft Security Require phishing-resistant multifactor authentication for Microsoft Entra administrator roles - Microsoft Entra ID | Microsoft Learn AI is the greatest threat—and defense—in cybersecurity today. Here’s why. Microsoft Entra Agents - Microsoft Entra | Microsoft Learn Smarter identity security starts with AI https://www.microsoft.com/en-us/security/blog/2025/06/12/cyber-resilience-begins-before-the-crisis/ https://www.microsoft.com/en-us/security/security-insider/threat-landscape/microsoft-digital-defense-report-2023-critical-cybersecurity-challenges https://www.microsoft.com/en-us/security/blog/2025/06/12/cyber-resilience-begins-before-the-crisis/Hacking Made Easy, Patching Made Optional: A Modern Cyber Tragedy
In today’s cyber threat landscape, the tools and techniques required to compromise enterprise environments are no longer confined to highly skilled adversaries or state-sponsored actors. While artificial intelligence is increasingly being used to enhance the sophistication of attacks, the majority of breaches still rely on simple, publicly accessible tools and well-established social engineering tactics. Another major issue is the persistent failure of enterprises to patch common vulnerabilities in a timely manner—despite the availability of fixes and public warnings. This negligence continues to be a key enabler of large-scale breaches, as demonstrated in several recent incidents. The Rise of AI-Enhanced Attacks Attackers are now leveraging AI to increase the credibility and effectiveness of their campaigns. One notable example is the use of deepfake technology—synthetic media generated using AI—to impersonate individuals in video or voice calls. North Korean threat actors, for instance, have been observed using deepfake videos and AI-generated personas to conduct fraudulent job interviews with HR departments at Western technology companies. These scams are designed to gain insider access to corporate systems or to exfiltrate sensitive intellectual property under the guise of legitimate employment. Social Engineering: Still the Most Effective Entry Point And yet, many recent breaches have begun with classic social engineering techniques. In the cases of Coinbase and Marks & Spencer, attackers impersonated employees through phishing or fraudulent communications. Once they had gathered sufficient personal information, they contacted support desks or mobile carriers, convincingly posing as the victims to request password resets or SIM swaps. This impersonation enabled attackers to bypass authentication controls and gain initial access to sensitive systems, which they then leveraged to escalate privileges and move laterally within the network. Threat groups such as Scattered Spider have demonstrated mastery of these techniques, often combining phishing with SIM swap attacks and MFA bypass to infiltrate telecom and cloud infrastructure. Similarly, Solt Thypoon (formerly DEV-0343), linked to North Korean operations, has used AI-generated personas and deepfake content to conduct fraudulent job interviews—gaining insider access under the guise of legitimate employment. These examples underscore the evolving sophistication of social engineering and the need for robust identity verification protocols. Built for Defense, Used for Breach Despite the emergence of AI-driven threats, many of the most successful attacks continue to rely on simple, freely available tools that require minimal technical expertise. These tools are widely used by security professionals for legitimate purposes such as penetration testing, red teaming, and vulnerability assessments. However, they are also routinely abused by attackers to compromise systems Case studies for tools like Nmap, Metasploit, Mimikatz, BloodHound, Cobalt Strike, etc. The dual-use nature of these tools underscores the importance of not only detecting their presence but also understanding the context in which they are being used. From CVE to Compromise While social engineering remains a common entry point, many breaches are ultimately enabled by known vulnerabilities that remain unpatched for extended periods. For example, the MOVEit Transfer vulnerability (CVE-2023-34362) was exploited by the Cl0p ransomware group to compromise hundreds of organizations, despite a patch being available. Similarly, the OpenMetadata vulnerability (CVE-2024-28255, CVE-2024-28847) allowed attackers to gain access to Kubernetes workloads and leverage them for cryptomining activity days after a fix had been issued. Advanced persistent threat groups such as APT29 (also known as Cozy Bear) have historically exploited unpatched systems to maintain long-term access and conduct stealthy operations. Their use of credential harvesting tools like Mimikatz and lateral movement frameworks such as Cobalt Strike highlights the critical importance of timely patch management—not just for ransomware defense, but also for countering nation-state actors. Recommendations To reduce the risk of enterprise breaches stemming from tool misuse, social engineering, and unpatched vulnerabilities, organizations should adopt the following practices: 1. Patch Promptly and Systematically Ensure that software updates and security patches are applied in a timely and consistent manner. This involves automating patch management processes to reduce human error and delay, while prioritizing vulnerabilities based on their exploitability and exposure. Microsoft Intune can be used to enforce update policies across devices, while Windows Autopatch simplifies the deployment of updates for Windows and Microsoft 365 applications. To identify and rank vulnerabilities, Microsoft Defender Vulnerability Management offers risk-based insights that help focus remediation efforts where they matter most. 2. Implement Multi-Factor Authentication (MFA) To mitigate credential-based attacks, MFA should be enforced across all user accounts. Conditional access policies should be configured to adapt authentication requirements based on contextual risk factors such as user behavior, device health, and location. Microsoft Entra Conditional Access allows for dynamic policy enforcement, while Microsoft Entra ID Protection identifies and responds to risky sign-ins. Organizations should also adopt phishing-resistant MFA methods, including FIDO2 security keys and certificate-based authentication, to further reduce exposure. 3. Identity Protection Access Reviews and Least Privilege Enforcement Conducting regular access reviews ensures that users retain only the permissions necessary for their roles. Applying least privilege principles and adopting Microsoft Zero Trust Architecture limits the potential for lateral movement in the event of a compromise. Microsoft Entra Access Reviews automates these processes, while Privileged Identity Management (PIM) provides just-in-time access and approval workflows for elevated roles. Just-in-Time Access and Risk-Based Controls Standing privileges should be minimized to reduce the attack surface. Risk-based conditional access policies can block high-risk sign-ins and enforce additional verification steps. Microsoft Entra ID Protection identifies risky behaviors and applies automated controls, while Conditional Access ensures access decisions are based on real-time risk assessments to block or challenge high-risk authentication attempts. Password Hygiene and Secure Authentication Promoting strong password practices and transitioning to passwordless authentication enhances security and user experience. Microsoft Authenticator supports multi-factor and passwordless sign-ins, while Windows Hello for Business enables biometric authentication using secure hardware-backed credentials. 4. Deploy SIEM and XDR for Detection and Response A robust detection and response capability is vital for identifying and mitigating threats across endpoints, identities, and cloud environments. Microsoft Sentinel serves as a cloud-native SIEM that aggregates and analyses security data, while Microsoft Defender XDR integrates signals from multiple sources to provide a unified view of threats and automate response actions. 5. Map and Harden Attack Paths Organizations should regularly assess their environments for attack paths such as privilege escalation and lateral movement. Tools like Microsoft Defender for Identity help uncover Lateral Movement Paths, while Microsoft Identity Threat Detection and Response (ITDR) integrates identity signals with threat intelligence to automate response. These capabilities are accessible via the Microsoft Defender portal, which includes an attack path analysis feature for prioritizing multicloud risks. 6. Stay Current with Threat Actor TTPs Monitor the evolving tactics, techniques, and procedures (TTPs) employed by sophisticated threat actors. Understanding these behaviours enables organizations to anticipate attacks and strengthen defenses proactively. Microsoft Defender Threat Intelligence provides detailed profiles of threat actors and maps their activities to the MITRE ATT&CK framework. Complementing this, Microsoft Sentinel allows security teams to hunt for these TTPs across enterprise telemetry and correlate signals to detect emerging threats. 7. Build Organizational Awareness Organizations should train staff to identify phishing, impersonation, and deepfake threats. Simulated attacks help improve response readiness and reduce human error. Use Attack Simulation Training, in Microsoft Defender for Office 365 to run realistic phishing scenarios and assess user vulnerability. Additionally, educate users about consent phishing, where attackers trick individuals into granting access to malicious apps. Conclusion The democratization of offensive security tooling, combined with the persistent failure to patch known vulnerabilities, has significantly lowered the barrier to entry for cyber attackers. Organizations must recognize that the tools used against them are often the same ones available to their own security teams. The key to resilience lies not in avoiding these tools, but in mastering them—using them to simulate attacks, identify weaknesses, and build a proactive defense. Cybersecurity is no longer a matter of if, but when. The question is: will you detect the attacker before they achieve their objective? Will you be able to stop them before reaching your most sensitive data? Additional read: Gartner Predicts 30% of Enterprises Will Consider Identity Verification and Authentication Solutions Unreliable in Isolation Due to AI-Generated Deepfakes by 2026 Cyber security breaches survey 2025 - GOV.UK Jasper Sleet: North Korean remote IT workers’ evolving tactics to infiltrate organizations | Microsoft Security Blog MOVEit Transfer vulnerability Solt Thypoon Scattered Spider SIM swaps Attackers exploiting new critical OpenMetadata vulnerabilities on Kubernetes clusters | Microsoft Security Blog Microsoft Defender Vulnerability Management - Microsoft Defender Vulnerability Management | Microsoft Learn Zero Trust Architecture | NIST tactics, techniques, and procedures (TTP) - Glossary | CSRC https://learn.microsoft.com/en-us/security/zero-trust/deploy/overviewEnterprise-grade controls for AI apps and agents built with Azure AI Foundry and Copilot Studio
AI innovation is moving faster than ever, and more AI projects are moving beyond experimentation into deployment, to drive tangible business impact. As organizations accelerate innovation with custom AI applications and agents, new risks emerge across the software development lifecycle and AI stack related to data oversharing and leaks, new vulnerabilities and threats, and non-compliance with stringent regulatory requirements Through 2025, poisoning of software supply chains and infrastructure technology stacks will constitute more than 70% of malicious attacks against AI used in the enterprise 1 , highlighting potential threats that originate early in development. Today, the average cost of a data breach is $4.88 million, but when security issues are caught early in the development process, that number drops dramatically to just $80 per incident 2 . The message is very clear; security can’t be an afterthought anymore. It must be a team sport across the organization, embedded from the start and throughout the development lifecycle. That's why developers and security teams should align on processes and tools that bring security into every stage of the AI development lifecycle and give security practitioners visibility into and the ability to mitigate risks. To address these growing challenges and help customers secure and govern their AI workloads across development and security teams, we are: Enabling Azure AI Foundry and Microsoft Copilot Studio to provide best-in-class foundational capabilities to secure and govern AI workloads Deeply integrating and embedding industry-leading capabilities from Microsoft Purview, Microsoft Defender, and Microsoft Entra into Azure AI Foundry and Microsoft Copilot Studio This week, 3,000 developers are gathering in Seattle for the annual Microsoft Build conference, with many more tuning in online, to learn practical skills for accelerating their AI apps and agents' innovation. To support their AI innovation journey, today we are excited to announce several new capabilities to help developers and organizations secure and govern AI apps and agents. New Azure AI Foundry foundational capabilities to secure and govern AI workloads Azure AI Foundry enhancements for AI security and safety With 70,000 customers, 100 trillion tokens processed this quarter, and 2 billion enterprise search queries each day, Azure AI Foundry has grown beyond just an application layer—it's now a comprehensive platform for building agents that can plan, take action, and continuously learn to drive real business outcomes. To help organizations build and deploy AI with confidence, we’re introducing new security and safety capabilities and insights for developers in Azure AI Foundry Introducing Spotlighting to detect and block prompt injection attacks in real time As AI systems increasingly rely on external data sources, a new class of threats has emerged. Indirect prompt injection attacks embed hidden instructions in documents, emails, and web content, tricking models into taking unauthorized actions without any direct user input. These attacks are difficult to detect and hard to prevent using traditional filters alone. To address this, Azure AI Content Safety is introducing Spotlighting, now available in preview. Spotlighting strengthens the Prompt Shields guardrail by improving its ability to detect and handle potential indirect prompt injections, where hidden adversarial instructions are embedded in external content. This new capability helps prevent the model from inadvertently acting on malicious prompts that are not directly visible to the user. Enable Spotlighting in Azure AI Content Safety to detect potential indirect prompt injection attacks New capabilities for task adherence evaluation and task adherence mitigation to ensure agents remain within scope As developers build more capable agents, organizations face growing pressure to help confirm those agents act within defined instructions and policy boundaries. Even small deviations can lead to tool misuse, broken workflows, or risks like unintended exposure of sensitive data. To solve this, Azure AI Foundry now includes task adherence for agents, now in preview and powered by two components: a real-time evaluation and a new control within Azure AI Content Safety. At the core is a real-time task adherence evaluation API, part of Azure AI Content Safety. This API assesses whether an agent’s behavior is aligned with its assigned task by analyzing the user’s query, system instructions, planned tool calls, and the agent’s response. The evaluation framework is built on Microsoft’s Agent Evaluators, which measure intent resolution, tool selection accuracy, completeness of response, and overall alignment to the original request. Developers can run this scoring logic locally using the Task Adherence Evaluator in the Azure AI Evaluation SDK, with a five-point scale that ranges from fully nonadherent to fully adherent. This gives teams a flexible and transparent way to inspect task-level behavior before it causes downstream issues. Task adherence is enforced through a new control in Azure AI Content Safety. If an agent goes off-task, the control can block tool use, pause execution, or trigger human review. In Azure AI Agent Service, it is available as an opt-in feature and runs automatically. Combined with real-time evaluation, this control helps to ensure that agents stay on task, follow instructions, and operate according to enterprise policies. Learn more about Prompt Shields in Azure AI Content Safety. Azure AI Foundry continuous evaluation and monitoring of agentic systems Maintaining high performance and compliance for AI agents after deployment is a growing challenge. Without ongoing oversight, issues like performance degradation, safety risks, or unintentional misuse of resources can slip through unnoticed. To address this, Azure AI Foundry introduces continuous evaluation and monitoring of agentic systems, now in preview, provides a single pane of glass dashboard to track key metrics such as performance, quality, safety, and resource usage in real time. Continuous evaluation runs quality and safety evaluations at a sampled rate of production usage with results made available in the Azure AI Foundry Monitoring dashboard and published to Application Insights. Developers can set alerts to detect drift or regressions and use Azure Monitor to gain full-stack visibility into their AI systems. For example, an organization using an AI agent to assist with customer-facing tasks can monitor groundedness and detect a decline in quality when the agent begins referencing irrelevant information, helping teams to act before it potentially negatively affects trust of users. Azure AI Foundry evaluation integrations with Microsoft Purview Compliance Manager, Credo AI, and Saidot for streamlined compliance AI regulations and standards introduce new requirements for transparency, documentation, and risk management for high-risk AI systems. As developers build AI applications and agents, they may need guidance and tools to help them evaluate risks based on these requirements and seamlessly share control and evaluation insights with compliance and risk teams. Today, we are announcing previews for Azure AI Foundry evaluation tool’s integration with a compliance management solution, Microsoft Purview Compliance Manager, and AI governance solutions, Credo AI and Saidot. These integrations help define risk parameters, run suggested compliance evaluations, and collect evidence for control testing and auditing. For example, for a developer who’s building an AI agent in Europe may be required by their compliance team to complete a Data Protection Impact Assets (DPIA) and Algorithmic Impact Assessment (AIA) to meet internal risk management and technical documentation requirements aligned with emerging AI governance standards and best practices. Based on Purview Compliance Manager’s step-by-step guidance on controls implementation and testing, the compliance teams can evaluate risks such as potential bias, cybersecurity vulnerabilities, or lack of transparency in model behavior. Once the evaluation is conducted in Azure AI Foundry, the developer can obtain a report with documented risk, mitigation, and residual risk for compliance teams to upload to Compliance Manager to support audits and provide evidence to regulators or external stakeholders. Assess controls for Azure AI Foundry against emerging AI governance standards Learn more about Purview Compliance Manager. Learn more about the integration with Credo AI and Saidot in this blogpost. Leading Microsoft Entra, Defender and Purview value extended to Azure AI Foundry and Microsoft Copilot Studio Introducing Microsoft Entra Agent ID to help address agent sprawl and manage agent identity Organizations are rapidly building their own AI agents, leading to agent sprawl and a lack of centralized visibility and management. Security teams often struggle to keep up, unable to see which agents exist and whether they introduce security or compliance risks. Without proper oversight, agent sprawl increases the attack surface and makes it harder to manage these non-human identities. To address this challenge, we’re announcing the public preview of Microsoft Entra Agent ID, a new capability in the Microsoft Entra admin center that gives security admins visibility and control over AI agents built with Copilot Studio and Azure AI Foundry. With Microsoft Entra Agent ID, an agent created through Copilot Studio or Azure AI Foundry is automatically assigned an identity with no additional work required from the developers building them. This is the first step in a broader initiative to manage and protect non-human identities as organizations continue to build AI agents. : Security and identity admins can gain visibility into AI agents built in Copilot Studio and Azure AI Foundry in the Microsoft Entra Admin Center This new capability lays the foundation for more advanced capabilities coming soon to Microsoft Entra. We also know that no one can do it alone. Security has always been a team sport, and that’s especially true as we enter this new era of protecting AI agents and their identities. We’re energized by the momentum across the industry; two weeks ago, we announced support for the Agent-to-Agent (A2A) protocol and began collaborating with partners to shape the future of AI identity workflows. Today, we’re also excited to announce new partnerships with ServiceNow and Workday. As part of this, we’ll integrate Microsoft Entra Agent ID with the ServiceNow AI Platform and the Workday Agent System of Record. This will allow for automated provisioning of identities for future digital employees. Learn more about Microsoft Entra Agent ID. Microsoft Defender security alerts and recommendations now available in Azure AI Foundry As more AI applications are deployed to production, organizations need to predict and prevent potential AI threats with natively integrated security controls backed by industry-leading Gen AI and threat intelligence for AI deployments. Developers need critical signals from security teams to effectively mitigate security risks related to their AI deployments. When these critical signals live in separate systems outside the developer experience, this can create delays in mitigation, leaving opportunities for AI apps and agents to become liabilities and exposing organizations to various threats and compliance violations. Now in preview, Microsoft Defender for Cloud integrates AI security posture management recommendations and runtime threat protection alerts directly into the Azure AI Foundry portal. These capabilities, previously announced as part of the broader Microsoft Defender for Cloud solution, are extended natively into Azure AI Foundry enabling developers to access alerts and recommendations without leaving their workflows. This provides real-time visibility into security risks, misconfigurations, and active threats targeting their AI applications on specific Azure AI projects, without needing to switch tools or wait on security teams to provide details. Security insights from Microsoft Defender for Cloud help developers identify and respond to threats like jailbreak attacks, sensitive data leakage, and misuse of system resources. These insights include: AI security posture recommendations that identify misconfigurations and vulnerabilities in AI services and provide best practices to reduce risk Threat protection alerts for AI services that notify developers of active threats and provide guidance for mitigation, across more than 15 detection types For example, a developer building an AI-powered agent can receive security recommendations suggesting the use of Azure Private Link for Azure AI Services resources. This reduces the risk of data leakage by handling the connectivity between consumers and services over the Azure backbone network. Each recommendation includes actionable remediation steps, helping teams identify and mitigate risks in both pre- and post-deployment phases. This helps to reduce risks without slowing down innovation. : Developers can view security alerts on the Risks + alerts page in Azure AI Foundry : Developers can view recommendations on the Guardrails + controls page in Azure AI Foundry This integration is currently in preview and will be generally available in June 2025 in Azure AI Foundry. Learn more about protecting AI services with Microsoft Defender for Cloud. Microsoft Purview capabilities extended to secure and govern data in custom-built AI apps and agents Data oversharing and leakage are among the top concerns for AI adoption, and central to many regulatory requirements. For organizations to confidently deploy AI applications and agents, both low code and pro code developers need a seamless way to embed security and compliance controls into their AI creations. Without simple, developer-friendly solutions, security gaps can quickly become blockers, delaying deployment and increasing risks as applications move from development to production. Today, Purview is extending its enterprise-grade data security and compliance capabilities, making it easier for both low code and pro code developers to integrate data security and compliance into their AI applications and agents, regardless of which tools or platforms they use. For example, with this update, Microsoft Purview DSPM for AI becomes the one place data security teams can see all the data risk insights across Microsoft Copilots, agents built in Agent Builder and Copilot Studio, and custom AI apps and agents built in Azure AI Foundry and other platforms. Admins can easily drill into security and compliance insights for specific AI apps or agents, making it easier to investigate and take action on potential risks. : Data security admins can now find data security and compliance insights across Microsoft Copilots, agents built with Agent Builder and Copilot Studio, and custom AI apps and agents in Microsoft Purview DSPM for AI In the following sections, we will provide more details about the updates to Purview capabilities in various AI workloads. 1. Microsoft Purview data security and compliance controls can be extended to any custom-built AI application and agent via the new Purview SDK or the native Purview integration with Azure AI Foundry. The new capabilities make it easy and effortless for security teams to bring the same enterprise-grade data security compliance controls available today for Microsoft 365 Copilot to custom AI applications and agents, so organizations can: Discover data security risks, such as sensitive data in user prompts, and data compliance risks, such as harmful content, and get recommended actions to mitigate risks proactively in Microsoft Purview Data Security Posture Management (DSPM) for AI. Protect sensitive data against data leakage and insider risks with Microsoft Purview data security policies. Govern AI interactions with Audit, Data Lifecycle Management, eDiscovery, and Communication Compliance. Microsoft Purview SDK Microsoft Purview now offers Purview SDK, a set of REST APIs, documentation, and code samples, currently in preview, enabling developers to integrate Purview's data security and compliance capabilities into AI applications or agents within any integrated development environment (IDE). : By embedding Purview APIs into the IDE, developers help enable their AI apps to be secured and governed at runtime For example, a developer building an AI agent using an AWS model can use the Purview SDK to enable their AI app to automatically identify and block sensitive data entered by users before it’s exposed to the model, while also providing security teams with valuable signals that support compliance. With Purview SDK, startups, ISVs, and partners can now embed Purview industry-leading capabilities directly into their AI software solutions, making these solutions Purview aware and easier for their customers to secure and govern data in their AI solutions. For example, Infosys Vice President and Delivery Head of Cyber Security Practice, Ashish Adhvaryu indicates, “Infosys Cyber Next platform integrates Microsoft Purview to provide enhanced AI security capabilities. Our solution, the Cyber Next AI assistant (Cyber Advisor) for the SOC analyst, leverages Purview SDK to drive proactive threat mitigation with real-time monitoring and auditing capabilities. This integration provides holistic AI-assisted protection, enhancing cybersecurity posture." Microsoft partner EY (previously known as Ernst and Young) has also leveraged the new Purview SDK to embed Purview value into their GenAI initiatives. “We’re not just building AI tools, we are creating Agentic solutions where trust, security, and transparency are present from the start, supported by the policy controls provided through the Purview SDK. We’re seeing 25 to 30 percent time savings when we build secure features using the Purview SDK,” noted Sumanta Kar, Partner, Innovation and Emerging Tech at EY. Learn more about the Purview SDK. Microsoft Purview integrates natively with Azure AI Foundry Organizations are developing an average of 14 custom AI applications. The rapid pace of AI innovation may leave security teams unaware of potential data security and compliance risks within their environments. With the update announced today, Azure AI Foundry signals are now directly integrated with Purview Data Security Posture Management for AI, Insider Risk Management, and data compliance controls, minimizing the need for additional development work. For example, for AI applications and agents built with Azure AI Foundry models, data security teams can gain visibility into AI usage and data risks in Purview DSPM for AI, with no additional work from developers. Data security teams can also detect, investigate, and respond to both malicious and inadvertent user activities, such as a departing employee leveraging an AI agent to retrieve an anomalous amount of sensitive data, with Microsoft Purview Insider Risk Management (IRM) policies. Lastly, user prompts and AI responses in Azure AI apps and agents can now be ingested into Purview compliance tools as mentioned above. Learn more about Microsoft Purview for Azure AI Foundry. 2. Purview data protections extended to Copilot Studio agents grounded in Microsoft Dataverse data Coming to preview in June, Purview Information Protection extends auto-labeling and label inheritance coverage to Dataverse to help prevent oversharing and data leaks. Information Protection makes it easier for organizations to automatically classify and protect sensitive data at scale. A common challenge is that sensitive data often lands in Dataverse from various sources without consistent labeling or protection. The rapid adoption of agents built using Copilot Studio and grounding data from Dataverse increases the risk of data oversharing and leakage if data is not properly protected. With auto-labeling, data stored in Dataverse tables can be automatically labeled based on policies set in Microsoft Purview, regardless of its source. This reduces the need for manual labeling effort and protects sensitive information from the moment it enters Dataverse. With label inheritance, AI agent responses grounded in Dataverse data will automatically carry and honor the source data’s sensitivity label. If a response pulls from multiple tables with different labels, the most restrictive label is applied to ensure consistent protection. For example, a financial advisor building an agent in Copilot Studio might connect multiple Dataverse tables, some labeled as “General” and others as “Highly Confidential.” If a response pulls from both, it will inherit the most restrictive label, in this case, "Highly Confidential,” to prevent unauthorized access and ensure appropriate protections are applied across both maker and users of the agent. Together, auto-labeling and label inheritance in Dataverse support a more secure, automated foundation for AI. : Sensitivity labels will be automatically applied to data in Dataverse : AI-generated responses will inherit and honor the source data’s sensitivity labels Learn more about protecting Dataverse data with Microsoft Purview. 3. Purview DSPM for AI can now provide visibility into unauthenticated interactions with Copilot Studio agents As organizations increasingly use Microsoft Copilot Studio to deploy AI agents for frontline customer interactions, gaining visibility into unauthenticated user interactions and proactively mitigating risks becomes increasingly critical. Building on existing Purview and Copilot Studio integrations, we’ve extended DSPM for AI and Audit in Copilot Studio to provide visibility into unauthenticated interactions, now in preview. This gives organizations a more comprehensive view of AI-related data security risks across authenticated and unauthenticated users. For example, a healthcare provider hosting an external, customer-facing agent assistant must be able to detect and respond to attempts by unauthenticated users to access sensitive patient data. With these new capabilities in DSPM for AI, data security teams can now identify these interactions, assess potential exposure of sensitive data, and act accordingly. Additionally, integration with Purview Audit provides teams with seamless access to information needed for audit requirements. : Gain visibility into all AI interactions, including those from unauthenticated users Learn more about Purview for Copilot Studio. 4. Purview Data Loss Prevention extended to more Microsoft 365 agent scenarios To help organizations prevent data oversharing through AI, at Ignite 2024, we announced that data security admins could prevent Microsoft 365 Copilot from using certain labeled documents as grounding data to generate summaries or responses. Now in preview, this control also extends to agents published in Microsoft 365 Copilot that are grounded by Microsoft 365 data, including pre-built Microsoft 365 agents, agents built with the Agent Builder, and agents built with Copilot Studio. This helps ensure that files containing sensitive content are used appropriately by AI agents. For example, confidential legal documents with highly specific language that could lead to improper guidance if summarized by an AI agent, or "Internal only” documents that shouldn’t be used to generate content that can be shared outside of the organization. : Extend data loss prevention (DLP) policies to Microsoft 365 Copilot agents to protect sensitive data Learn more about Data Loss Prevention for Microsoft 365 Copilot and agents. The data protection capabilities we are extending to agents in Agent Builder and Copilot Studio demonstrate our continued investment in strengthening the Security and Governance pillar of the Copilot Control System (CSS). CCS provides integrated controls to help IT and security teams secure, manage, and monitor Copilot and agents across Microsoft 365, spanning governance, management, and reporting. Learn more here. Explore additional resources As developers and security teams continue to secure AI throughout its lifecycle, it’s important to stay ahead of emerging risks and ensure protection. Microsoft Security provides a range of tools and resources to help you proactively secure AI models, apps, and agents from code to runtime. Explore the following resources to deepen your understanding and strengthen your approach to AI security: Learn more about Security for AI solutions on our webpage Learn more about Microsoft Purview SDK Get started with Azure AI Foundry Get started with Microsoft Entra Get started with Microsoft Purview Get started with Microsoft Defender for Cloud Get started with Microsoft 365 Copilot Get started with Copilot Studio Sign up for a free Microsoft 365 E5 Security Trial and Microsoft Purview Trial 1 Predicts 2025: Navigating Imminent AI Turbulence for Cybersecurity, Jeremy D'Hoinne, Akif Khan, Manuel Acosta, Avivah Litan, Deepak Seth, Bart Willemsen, 10 February 2025 2 IBM. "Cost of a Data Breach 2024: Financial Industry." IBM Think, 13 Aug. 2024, https://www.ibm.com/think/insights/cost-of-a-data-breach-2024-financial-industry; Cser, Tamas. "The Cost of Finding Bugs Later in the SDLC." Functionize, 5 Jan. 2023, https://www.functionize.com/blog/the-cost-of-finding-bugs-later-in-the-sdlc
