The CISO Cheat Sheet to Microsoft Digital Defense Report 2026
I know we’re all busy, so I’ve pulled the most important data from this year’s Microsoft Digital Defense Report into one short read. The full report is well worth exploring, but this article focuses on the numbers and trends most relevant to security leaders. This year’s edition shows that AI is lowering the time, expertise and cost required to discover and exploit weaknesses, enabling attackers to operate with greater speed, scale and autonomy. The report describes this as AI “changing the physics of cybersecurity”: attack timelines are compressing and agentic systems are beginning to automate more of the attack lifecycle. Trend 1: Time has collapsed The clearest finding is about speed. Vulnerability discovery is increasingly running ahead of remediation, while the time from discovery to weaponisation is shrinking. In the AI era, weaponisation can follow in hours. Vulnerability discovery and weaponisation now often needs only a well-written prompt. The median time from discovery in the wild to weaponisation is below 24 hours. Vulnerabilities were on track for a record estimated 72,000 CVEs in 2026. The report expects a multi-year period in which the number of known but unpatched vulnerabilities rises sharply before eventually declining. The median time from container start to first exploit attempt is 5.3 hours. The ransomware actor Storm-1175 moved from web-facing exploitation to deploying Medusa ransomware in as little as 24 hours. CISA added over 110 CVEs to its Known Exploited Vulnerabilities catalogue between November 2025 and May 2026, most within a week of disclosure. The mismatch with enterprise reality is the uncomfortable part. The report says the disclosure-to-exploitation window has shrunk to single-digit days. Between November 2025 and May 2026, CISA added more than 110 vulnerabilities to its Known Exploited Vulnerabilities catalogue, most within a week of disclosure. In one example, Storm-1175 moved from exploiting a web-facing vulnerability to deploying Medusa ransomware in as little as 24 hours. Microsoft’s Red Team makes an important point: a patch is also a disclosure. Every fix points attackers towards the flaw it closes. As AI-assisted analysis makes reversing patches faster and more reliable, the report argues that patch velocity, not simply patch availability, becomes the control that matters. Trend 2: Attack chains are gaining autonomy The report charts a clear progression: September–November 2025: AI assists in orchestrating a campaign, as in the Anthropic-reported espionage case. April–June 2026: Full-chain autonomy is demonstrated in labs. July 2026: Real-world autonomous attacks of increasing complexity appear. Two frontier models, Mythos and GPT-5.5, completed a 32-step attack chain against an emulated enterprise with no human help. The test environment had no defenders. The UK AI Security Institute reached a similar finding independently. GPT-5.5 was the second model to solve its end-to-end corporate network attack simulation, a task AISI estimates would take a human about 20 hours. Open-weight models lag closed models at orchestrating attacks by about seven months. In the wild, early July 2026 saw the first documented automated ransomware extortion attack, named JADEPUFFER by Sysdig. Microsoft has seen AI-orchestrated intrusions that share elements with it. Initial access consistently came from internet-exposed services running known-vulnerable software. The report is measured on this point. Volumes of AI-orchestrated activity remain low. In most observed real-world operations, complex end-to-end intrusions still retain meaningful human direction. The Red Team's framing is the most useful one: AI doesn't create a new class of attack, it collapses the effort needed to find and exploit existing attack paths. Trend 3: AI has become an attack surface The report's second takeaway is that attackers are already targeting AI itself. The adoption numbers explain why. 88% of enterprises are experimenting with agents, and 82% of leaders plan broader rollouts within 12–18 months. The report cites industry projections of roughly 1.3 billion agents in production by 2028. What attackers are doing to AI systems: Four techniques accounted for roughly 90% of observed attack activity in telemetry from Azure AI workloads: malicious link injection (52%), jailbreaks (16%), tool and agent abuse (12%), and identity and credential abuse (10%). Memory poisoning: An attacker who can place content anywhere an agent reads can often place it where the agent remembers. Email is the dominant pathway the Red Team has observed. Human-in-the-loop isn't a complete control: Red team testing saw approval prompts ignored, or bypassed by a policy stored in poisoned memory. Developer tools turned against their owners: The "s1ngularity" malware hijacked locally installed AI command-line tools to hunt for secrets. It leaked about 2,000 secrets and 20,000 files across 225 victims. AI browsers: In daily use at more than 40% of organisations in Microsoft's dataset, they were the initial infection vector in incidents involving 57 malware families in a May 2026 analysis. Chat histories as a target: Malicious AI-assistant extensions reached nearly 900,000 installs and more than 20,000 enterprise tenants, harvesting AI chat histories that often contain code, architecture and credentials. The identity implications are direct. Each agent needs its own identity, not one borrowed from an employee, and a named human sponsor. The report also treats revocation latency, the time to cut off a compromised agent, as a measured outcome. Trend 4: The front door is still identity AI changes the speed and personalisation of social engineering. It hasn't changed where attacks start. Initial access in Defender Experts data: User execution: 30% Valid accounts: 20% Malicious copy-and-paste: 13% Phishing: 11% Together, user execution and valid accounts account for over half of observed activity. In incident response engagements, phishing as an initial access vector jumped from 7% to 23% year on year. The standout numbers: ClickFix: Defender saw user-pasted malicious commands on more than 1.1 million unique devices between February and early May 2026, roughly an 8x increase. AiTM: URLs accounted for 45% of the identified phishing techniques in the report’s breakdown. Separately, the share of AiTM phishing and token-theft attacks more than doubled during the first six months of 2026, although the report notes that their overall share remained comparatively small. Teams vishing: Weekly confirmed malicious volume increased 502% year on year. Per attempt, 48% of vishing calls kept the victim engaged for more than 20 seconds, and 30% lasted more than one minute. When a call succeeds, attackers can persuade the victim to install a remote-management tool and complete reconnaissance in two minutes or less. Business contact impersonation (BCI): The report introduces this term for conversations that start with a trusted-looking contact. Microsoft detected more than 46 million attacks in 12 months, with a 121% spike in April 2026. The share of first-contact messages that explicitly asked for money or documents fell from 17% to 3%. The first message is deliberately bland, like "Are you at your desk?" Password attacks declined 26% year on year, which the report describes as strong evidence that MFA and passkeys are forcing attackers to pivot. That pivot includes techniques such as fatigue attacks, AiTM phishing and token theft designed to circumvent conventional MFA. Trend 5: Attackers are inheriting trust rather than breaking in The report's headline theme is that risk is increasingly interconnected. Threats travel through the trusted relationships between identities, software supply chains, partners and cloud platforms. The numbers: Supply chain: Major open-source ecosystems saw attacks roughly every ten days, accelerating through Q2 2026. Shai-Hulud 2.0 affected 25,000 repositories. Megalodon backdoored 5,561 GitHub repositories in under six hours. Trusted signing: In May 2026, Microsoft disrupted Fox Tempest, a "malware-signing-as-a-service" operation that obtained genuine certificates for ransomware loaders and infostealers. Microsoft revoked over a thousand fraudulent code-signing certificates. Legitimate access: An unsanctioned remote monitoring tool is now one of the most reliable mid-stage indicators of a human-operated intrusion. Cloud identity: Cloud identity abuse was the most observed technique against critical infrastructure, representing 78% of the technique mix in Microsoft’s data for March to June 2026. Hybrid intrusions: The Storm-2885 case showed an attacker using a privileged cloud identity to close and downgrade security alerts. The report says identity governance and alert-handling workflows deserve Tier 0 treatment. Dwell time: DART data shows a statistically significant increase in dwell time year on year, meaning organisations took longer to detect intrusions. Ransomware shows the same ecosystem pattern. Qilin led leak-site data with 16.4% of victims, up 386%. Defender detections tell a different story, with Akira at 22%. Trend 6: Defence works best when it's connected The report is not only a catalogue of threats. The strongest defensive evidence: Disruption works. Following the March 2026 disruption, Tycoon2FA activity had fallen 95% from its November 2025 peak by June. Its share of CAPTCHA-gated phishing declined from 76% in December 2025 to 12% in June 2026. Correlation is the highest-leverage variable. The report argues that how well defenders share and correlate signals across endpoint, identity, cloud, email and network is one of the highest-leverage strategic variables under their control. AI is also changing defensive operations. The report describes AI-assisted triage, incident summarisation, hunting-query generation and detection engineering as ways to accelerate investigations and allow analysts to concentrate on higher-value work. Automated disruption can compress response time. The report says that when a correlated incident reaches a defined confidence threshold, defensive systems can automatically isolate devices, disable compromised accounts, revoke sessions or quarantine affected cloud resources. It also stresses the importance of appropriate governance and human oversight for high-risk AI actions. The report also recommends changing what leaders measure. It suggests moving from patches deployed to exposure reduced, detection coverage increased and time-to-mitigate compressed. What the MDDR recommends: ten security priorities The report starts its recommendations with the foundations: Secure by Design, Secure by Default and Secure Operations, applied through identity-centric Zero Trust. Microsoft says these keep the priorities below durable as AI adds more identities, applications, agents and dependencies to govern. Govern cyber risk at leadership level. Report identity exposure, patch latency, agent permissions, critical dependencies, dwell time and recovery readiness to the board. Defend identity as the primary control plane. Deploy passkeys and phishing-resistant MFA, reduce privilege and govern human and non-human identities. Invalidate and rotate tokens and session credentials quickly. Establish governance, visibility and data controls for AI. Keep visibility of approved AI tools, services and agents, and monitor for unauthorised or unmanaged use. Apply sensitivity-aware access and data protection to the data those systems can reach. Reduce exposure and edge risk. Continuously discover internet-facing assets and patch edge devices quickly. Centralise high-fidelity logging, enforce strong authentication and combine network visibility with threat intelligence. Focus on cross-signal correlation. Correlate endpoint, identity, cloud, application, email and network signals to detect intrusions earlier. Correlation also helps defenders anticipate attack paths and likely targets. Enact a continuous threat and vulnerability management model. Combine asset visibility, vulnerability identification, threat detection and AI-accelerated insight into a single continuous programme. Validate exposure through proactive testing. Run assume-breach exercises on cloud services, SaaS platforms, APIs and workflow automation. Prioritise them by where your highest-value data is stored, accessed or aggregated. Secure software dependencies. Harden software installation, keep a software inventory and validate provenance. Monitor packages and prepare for rapid containment. Participate in collective defence. Share actionable threat indicators and victim-informed intelligence with trusted partners and law enforcement. This supports coordinated tracking, investigation and disruption. Prepare for long-horizon technology transitions. Build a cryptographic inventory and advance post-quantum planning alongside AI governance. Read together, the numbers tell one story: the attacker’s workflow is becoming faster and less expensive. AI can shorten vulnerability discovery, exploitation, secret discovery and lateral movement, while organisations still face the slower operational work of testing, coordinating and deploying safe changes across complex environments. At the same time, agent identities can proliferate faster than organisations can inventory, govern and revoke them The defining question for boards today is not whether disruption will occur, but whether the organization can continue operating, contain harm, recover quickly, and maintain trust when it does. Source: Microsoft Digital Defense Report 2026, Version 1.1. Reporting period: July 2025–June 2026.
From “No” to “Now”: A 7-Layer Strategy for Enterprise AI Safety
The “block” posture on Generative AI has failed. In a global enterprise, banning these tools doesn't stop usage; it simply pushes intellectual property into unmanaged channels and creates a massive visibility gap in corporate telemetry. The priority has now shifted from stopping AI to hardening the environment so that innovation can run at velocity without compromising data sovereignty. Traditional security perimeters are ineffective against the “slow bleed” of AI leakage - where data moves through prompts, clipboards, and autonomous agents rather than bulk file transfers. To secure this environment, a 7-layer defense-in-depth model is required to treat the conversation itself as the new perimeter. 1. Identity: The Only Verifiable Perimeter Identity is the primary control plane. Access to AI services must be treated with the same rigor as administrative access to core infrastructure. The strategy centers on enforcing device-bound Conditional Access, where access is strictly contingent on device health. To solve the "Account Leak" problem, the deployment of Tenant Restrictions v2 (TRv2) is essential to prevent users from signing into personal tenants using corporate-managed devices. For enhanced coverage, Universal Tenant Restrictions (UTR) via Global Secure Access (GSA) allows for consistent enforcement at the cloud edge. While TRv2 authentication-plane is GA, data-plane protection is GA for the Microsoft 365 admin center and remains in preview for other workloads such as SharePoint and Teams. 2. Eliminating the Visibility Gap (Shadow AI) You can’t secure what you can't see. Microsoft Defender for Cloud Apps (MDCA) serves to discover and govern the enterprise AI footprint, while Purview DSPM for AI (formerly AI Hub) monitors Copilot and third-party interactions. By categorizing tools using MDCA risk scores and compliance attributes, organizations can apply automated sanctioning decisions and enforce session controls for high-risk endpoints. 3. Data Hygiene: Hardening the “Work IQ” AI acts as a mirror of internal permissions. In a "flat" environment, AI acts like a search engine for your over-shared data. Hardening the foundation requires automated sensitivity labeling in Purview Information Protection. Identifying PII and proprietary code before assigning AI licenses ensures that labels travel with the data, preventing labeled content from being exfiltrated via prompts or unauthorized sharing. 4. Session Governance: Solving the “Clipboard Leak” The most common leak in 2025 is not a file upload; it’s a simple copy-paste action or a USB transfer. Deploying Conditional Access App Control (CAAC) via MDCA session policies allows sanctioned apps to function while specifically blocking cut/copy/paste. This is complemented by Endpoint DLP, which extends governance to the physical device level, preventing sensitive data from being moved to unmanaged USB storage or printers during an AI-assisted workflow. Purview Information Protection with IRM rounds this out by enforcing encryption and usage rights on the files themselves. When a user tries to print a "Do Not Print" document, Purview triggers an alert that flows into Microsoft Sentinel. This gives the SOC visibility into actual policy violations instead of them having to hunt through generic activity logs. 5. The “Agentic” Era: Agent 365 & Sharing Controls Now that we're moving from "Chat" to "Agents", Agent 365 and Entra Agent ID provide the necessary identity and control plane for autonomous entities. A quick tip: in large-scale tenants, default settings often present a governance risk. A critical first step is navigating to the Microsoft 365 admin center (Copilot > Agents) to disable the default “Anyone in organization” sharing option. Restricting agent creation and sharing to a validated security group is essential to prevent unvetted agent sprawl and ensure that only compliant agents are discoverable. 6. The Human Layer: “Safe Harbors” over Bans Security fails when it creates more friction than the risk it seeks to mitigate. Instead of an outright ban, investment in AI skilling-teaching users context minimization (redacting specifics before interacting with a model) - is the better path. Providing a sanctioned, enterprise-grade "Safe Harbor" like M365 Copilot offers a superior tool that naturally cuts down the use of Shadow AI. 7. Continuous Ops: Monitoring & Regulatory Audit Security is not a “set and forget” project, particularly with the EU AI Act on the horizon. Correlating AI interactions and DLP alerts in Microsoft Sentinel using Purview Audit (specifically the CopilotInteraction logs) data allows for real-time responses. Automated SOAR playbooks can then trigger protective actions - such as revoking an Agent ID - if an entity attempts to access sensitive HR or financial data. Final Thoughts Securing AI at scale is an architectural shift. By layering Identity, Session Governance, and Agentic Identity, AI moves from being a fragmented risk to a governed tool that actually works for the modern workplace.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.
Insider Risk Level not being correctly picked up by DLP
I have two users currently with assigned Insider Risk levels, one elevated and one minor. I have taken the templated DLP policy (DSPM for AI - Block sensitive info from AI sites) which looks for sensitive information being pasted to generative AI sites, and applies a block if the user is an elevated risk user, and a block with override for a moderate/minor risk user (this was audit only originally). For each advanced DLP rule within that policy, I have a separate policy tip which shows so I know which Advanced DLP rule has been hit. However, I'm having some discrepancies with the correct insider risk level being identified by Purview and therefore the wrong advanced DLP rule is being applied. Testing examples: Logged into a Windows 11 PC with the account, and using Medium confidence UK NINO's I try pasting the content into ChatGPT: Elevated risk user: Block with Override Minor Risk user: Block with Override If I try the exact same scenario on a different PC, I can sometimes get to the point where even though its the same set of data, Purview allows me to paste it at after checking the data. Or in another scenario, I was getting both users hitting the "elevated risk" advanced DLP rule. The Devices are all showing as up to date sync wise with DLP policies, and the policy itself is showing as fully synced. Assigned insider risk levels: DLP Rules: Elevated: Moderate/Minor:Introducing a unified alert experience for Microsoft Purview Insider Risk Management
Modern insider risk investigations succeed or fail based on how quickly analysts can move from signal to decision with more context. Too often, investigations within Microsoft Purview require high switching costs while analysts struggle with disconnected alert views and scattered case notes across workflows. Every switch slows triage pulling focus away from the risk itself, decreasing the speed and confidence of investigations. That’s why we’re unifying the Microsoft Purview Insider Risk Management investigation experience with three connected improvements — a unified alert queue, expanded user profile details, and notes across alerts and cases. Analysts can now triage, understand context, and capture their work in a streamlined investigation flow to help enable faster investigations and increase confidence. Here’s what’s coming to public preview in July 2026: 1. One unified alert queue integrating classic and agent workflows together The most disruptive part of triage happens before analysts dig into any single alert: understanding what alerts require the most attention. Today, that means toggling between the classic alert queue and the Data Security Triage Agent’s insights. We’re now bringing them together into a single, unified alerts list. Instead of switching between two experiences, analysts get one page where they can: Preview agent summaries, alert details, and user details directly from the alerts list, reducing the need to open each alert individually. Filter all classic and agent attributes on one page, including a new agent categorization column and the ability to surface agent-triaged alerts that need attention. View and manage the agent directly from the alerts list. Open or act on an alert with the ability to stay within the queue. As part of this unification, alert spotlighting is being retired, and the toggle between agent and classic alerts is going away in favor of the single view. To give teams time to adjust, both the classic and new experiences will remain available for at least 60 days, with support for both currently planned through August 31, 2026. Explore the unified alert queue here → New IRM Alert Experience. Launch details: Public preview: July 2026 | Roadmap ID: 564621 le page. 2. Expanded user profile details to better understand user risk Once an alert has been raised, the next question is about the person behind it: Who are they, and how much risk does this really represent? Answering that used to mean piecing context together from multiple places. The expanded user profile brings context into one unified view by: Adding new signals from the user’s Entra profile including office location, employee type, department, and last working date. Aggregating key insider risk signals in one place including Entra profile details, past alert and case history, priority user group status, and policy inclusion. The result is a fuller, more detailed picture of users' risk, to provide investigators with more context for decisions without leaving the alert. See expanded user profile details here → New IRM Alert Experience Where to find it: On the new Alerts (preview) tab — click Alerts (preview) in the left navigation, open an alert, scroll to User details, and select View user details. Note: when pseudo-anonymization is enabled, user profile details will not appear, preserving privacy by design. Launch details: Public preview: July 2026 | Roadmap ID: 564619 3. Notes across alerts and cases keep context with the work Investigation context shouldn’t live in someone’s memory or a side document. Analysts and investigators can now add and view notes directly in alerts and cases within the Purview portal, ensuring the story of an investigation stays with the investigation. Notes come in two forms: System-generated notes are applied automatically on key changes including alert or case status, assigned user, alert or case closure, and case escalations. Analyst notes let investigators capture their own observations as they work This gives teams continuity and a clearer record of investigation activity history without breaking stride. Where to find it: In the Notes tab within the alert details panel, and within the Cases tab within a case. Start capturing notes across alerts and cases here→ New IRM Alert Experience Launch details: Public preview: July 2026 | Roadmap ID: 564620 Ready to get started? Try the unified Insider Risk Management experience today: Click here to get started Privacy Statement: Microsoft Purview Insider Risk Management correlates various signals to identify potential malicious or inadvertent insider risks, such as IP theft, data leakage, and security violations. Insider Risk Management enables customers to create policies to manage security and compliance. Built with privacy by design, users are pseudonymized by default, and role-based access controls and audit logs are in place to help ensure user-level privacy.
Best practices for maintaining emergency contact information
Hello everyone. Our organization is currently reviewing its emergency contact directory as part of our business continuity and operational processes. What best practices do you recommend for keeping emergency contact information updated and ensuring it remains available during incidents or emergencies? Thank you for your suggestions.Extend data security to the network with Microsoft Purview and Microsoft Entra
Protection that keeps up with how data moves in the AI era Enterprise data used to be easier to contain. It lived in files, in apps you managed, within boundaries you controlled. Security teams could focus on endpoints and known systems, and that was often enough. That’s no longer the case. Today, data travels constantly between trusted endpoints and unmanaged web apps, SaaS apps, and most critically, generative AI tools over the network. Employees type and paste sensitive information into prompts, upload work-related files to external services or personal cloud storage, and interact with systems that sit entirely outside the traditional enterprise perimeter. AI has expanded the risk surface for potential enterprise data loss. That’s why Microsoft Purview and Microsoft Entra now integrate to extend data security to the network layer (available in public preview). Traditional data loss prevention (DLP) approaches lack real-time visibility and enforcement, flagging incidents after data has already left the organization. In other cases, vendors rely heavily on physical network appliances that are complex and expensive to deploy, or compute resources that can add significant latency. In the era of AI, that model breaks down quickly. Real-time data protection for how work happens today To adapt to how enterprise data moves in the AI era, we’re announcing the extension of data security to the network layer, powered by Microsoft Purview and Microsoft Entra, now in public preview. This integration brings together data context and identity-aware enforcement to help protect sensitive data in transit, in real time: Detect how sensitive data is shared to shadow AI tools, unmanaged SaaS apps, and personal cloud repositories Help block the sharing of sensitive data in real time based on identity, user activity, and data context, before data leakage occurs Unify investigation workflows by correlating identity, data, and insider risk signals across Purview, Entra, and Defender Prevent employees from sharing proprietary or sensitive organizational data to potentially risky locations such as consumer AI apps. By combining Purview data classification, DLP policies, and insider risk detection with identity-aware enforcement at the network layer through Entra, organizations can dynamically apply protections based on: The sensitivity of the data Who the user is How that user has interacted with sensitive data over time Together, Purview and Entra enable a modern approach to data protection that follows the data to prevent leakage instead of relying on at-rest controls alone. Not only that, but the same Purview classification and policies that you already leverage for the rest of your enterprise data can now be applied consistently across data in motion, at rest, and in use. Learn more in the detailed blog. See the capabilities in action here. Start your free trial of Purview Suite here.Why “Data in Switzerland” Is Not Enough
Moving from Residency to Control in Microsoft 365 Every conversation about data sovereignty in regulated industries tends to start the same way: “We use Multi-Geo. The data stays in Switzerland.” It’s the right starting point. Microsoft 365 Multi-Geo allows organizations to place selected workloads - SharePoint sites, OneDrive accounts, Teams data, or Exchange mailboxes - into specific regions, including Switzerland, while maintaining a single global tenant. This makes it possible to align sensitive data with regulatory or customer requirements without fragmenting the overall environment. But it only answers one question: Where is the data stored? It does not answer who accessed the data, from where, under which conditions, or what happened after access. That is where the real problem begins. A scenario that happens every day A Swiss engineering firm stores sensitive project documentation in Switzerland using Multi-Geo. An external contractor - working from an unmanaged device outside Switzerland - is granted access to review a file. The document opens. The data is now on a screen in an unknown location, on a device with no compliance posture, in a session with no restrictions. From the platform’s perspective, residency was enforced. From a sovereignty perspective, control was lost the moment access was granted without conditions. The file never left Switzerland. But sovereignty did. Residency is static. Control is not. The moment a document is opened, storage location stops being the relevant boundary. The file is no longer just “in Switzerland.” It moves instantly across endpoints and browsers, collaboration tools like Teams, external users and partners, and increasingly AI-driven contexts. The infrastructure remains unchanged. The data does not. From the platform’s perspective, everything is working as designed - access was granted, residency was enforced - and control was lost. Most “data in Switzerland” strategies fail at exactly this moment: when the data is used. The shift: from location to conditions If data sovereignty is the goal, the question must change. Not “Where is the data stored?” but: Under which conditions can data be accessed and used? This shift fundamentally changes the architecture. Control must be applied across three distinct layers - and all three must be connected. Layer 1: Access is conditional, not static Conditional Access extends control beyond authentication and turns it into continuous evaluation. Access decisions can depend on: Device compliance Location (geo-restriction) Identity and risk signals Multi-Geo ensures data is placed correctly. Conditional Access ensures it is reachable only under defined conditions. The two must work together - residency without access governance is an incomplete control. Layer 2: The session is the real risk surface Even with strict access controls, risk remains. A session is an exposure surface by design. During an active session, data is viewed, copied, shared, processed by applications, and connected to AI prompts. The gap does not appear at storage or authentication. It appears during active usage - inside the session. This is the layer most architectures do not explicitly address. Controls must extend into the session itself: limiting data transfer and replication, restricting interaction patterns, and enforcing policies in real time. Access is no longer a one-time event. It becomes continuously governed. This becomes even more critical as AI assistants consume content across SharePoint, Teams, Exchange, and other Microsoft 365 services. The question is no longer only where the source document resides - but whether the AI interaction itself is governed by the same access and protection controls as direct access. Layer 3: The document becomes the control point The most durable control does not sit in the network or in the session. It sits in the data itself. In regulated industries, organizations often arrive at this architecture having first evaluated sovereign or national encryption solutions. The decision to rely on native Microsoft 365 Purview encryption rather than a separate layer comes down to integration: AES-256 protection operating natively at file, user, and SharePoint level - including geo-based access restrictions - without an additional system to maintain. When protection is applied directly to the document through Microsoft Purview: Sensitivity labels define classification - automatically assigned based on content Encryption enforces access - AES-256, bound to the file itself IRM controls usage - view, copy, print, share, and presentation rights DLP governs movement across services - preventing data from leaving defined boundaries Dynamic watermarking tracks exposure - applied on open, view, or print At that point, access is enforced by the file, usage restrictions travel with it, and control persists regardless of location. The document becomes the perimeter. Platform control: limiting provider access One dimension often overlooked in sovereignty discussions is platform access itself. Even a perfectly configured tenant is only as sovereign as the controls placed on the operator. Customer Lockbox ensures that even Microsoft support cannot access customer data without explicit, logged, time-bound approval. Every access request is visible, auditable, and subject to customer veto. Data control applies not only to users - but also to the platform operating the service. Enforcement requires an integrated architecture Most organizations already have the required capabilities: Multi-Geo, Conditional Access, session control, Purview (labels, encryption, DLP, IRM), and monitoring. The issue is not capability. It is fragmentation. In practice, fragmentation looks like this: residency is configured in one project, Conditional Access policies are managed by a different team, and Purview labels were applied during a compliance initiative that never connected to the access layer. The tools exist. The signals do not flow between them. When designed as a single architecture: Data is placed intentionally - residency aligned to regulatory requirements Access is governed by context - device, location, and identity evaluated continuously Usage is controlled dynamically - session-level restrictions enforced in real time Protection is embedded in the document - encryption and IRM travel with the file Signals are connected across the platform - monitoring feeds access policy, not just audit logs “Data in Switzerland” becomes not just a statement - but an enforceable system property. Closing thought Placing data in Switzerland is the right first step. Multi-Geo makes it possible, even in global environments. But residency alone is not control. Data residency answers where information is stored. Data sovereignty requires proving who can access it, under which conditions, and what controls remain in place after access is granted. In Microsoft 365, sovereignty is no longer defined by geography alone. It is defined by the ability to enforce control wherever the data travels.Microsoft Purview enables developers with strong data security across AI apps and agents
Today, developers are at the center of a new wave of innovation—building AI applications and agents that are deeply connected to enterprise data. But with this opportunity comes a new and complex set of security challenges. AI systems operate across cloud platforms, third-party services, and even local and on-premises development environments, interacting dynamically with sensitive data such as customer records, financial information, and intellectual property. Traditional security approaches weren’t designed for this level of scale, autonomy, or fluid data movement—leaving developers to navigate fragmented tools, unclear policies, and the risk of unintentionally exposing sensitive information. At the same time, expectations are rising. Organizations need to ensure that AI applications and agents are compliant, auditable, and secure by default on an enterprise-level—not retrofitted after deployment. But for developers, adding security often means additional complexity, custom integrations, and slower time to market. This tension between speed and control has become one of the biggest barriers to moving AI from experimentation into production. Microsoft Purview is designed to help with this challenge by embedding data security and compliance controls across the development cycle. Purview provides a consistent way to govern how data is accessed, used, and shared—without requiring developers to become security experts. The result is a simpler path to building AI systems that are secure, compliant, and enterprise-ready by design. Extending data security and compliance to local agents and claws Local and endpoint agents, built in platforms such as GitHub Copilot CLI and OpenClaw, introduce a new class of data security challenges as they operate outside traditional control planes and directly on user machines. Unlike cloud systems, these agents can access local files, credentials, terminals, and enterprise apps simultaneously—often moving data across tools and environments. This expands data risks, from sensitive data being unintentionally stored, copied, or shared, to API keys and tokens being exposed, and autonomous workflows triggering data movement without explicit user intent. At the same time, many existing security controls were designed for browser or cloud-based activity, leaving a growing blind spot at the endpoint where agents are increasingly running. The result is a widening gap between how developers build agents to operate locally in the users machines, and how organizations can detect, govern, and protect the data those agents interact with. Microsoft Security and Windows are integrating management and security capabilities directly into the local agents’ development workflow, enabling security as an architectural guarantee rather than an implementation choice. At Build, we are thrilled to be extending Purview visibility and protection capabilities to local agents developed on GitHub Copilot CLI, Claude Code, OpenAI Codex, and OpenClaw - in Public Preview. Unlike traditional cloud applications, these agents operate closer to the data and often create new risks for data exposure. Purview addresses this challenge across all types of agent interactions with a clear, simplified set of scenarios: ▪ Observability: Visibility on Purview Data Security Posture Management (DSPM) across agent inventory, as well as into how local agents interact with sensitive data—across prompts, responses, and actions. ▪ Runtime data protection: Purview Data Loss Prevention (DLP) controls enforced directly into the agent execution flow, inspecting prompts and tool calls in real time to prevent sensitive data exfiltration. ▪ Agentic risk detection: Risky or anomalous agent behaviors detected through Insider Risk Management (IRM) signals, helping teams detect unsafe interactions early. ▪ Audit: Comprehensive, end-to-end logging of all local agent interactions—capturing prompts, responses, data access, and actions for data context. For example, a developer is using a local coding agent to generate code and accidentally includes sensitive credentials in a prompt. AI observability in DSPM surfaces the interaction and shows what data the agent accessed. DLP detects the sensitive data in real time and blocks it from being sent or processed (or sensitive files from being accessed and exfiltrated). At the same time, agentic risk detection flags the session as high risk based on the behavior pattern. All of this activity is captured in audit logs, enabling the security team to investigate and take action quickly. Developers and security teams gain visibility into agent activity and data interactions, while policies prevent sensitive data leakage. This ensures consistent security outcomes across both cloud and endpoint environments, without disrupting developer workflows. Strengthening visibility and controls for Foundry agents Foundry gives developers a central place to build and manage AI agents, but it also creates a need for data security context directly in that workflow—especially as prompts, model interactions, and downstream actions increasingly involve sensitive enterprise data. At Build, we are excited to announce the expansion of the Foundry integration with Purview. This includes Purview DLP runtime controls for prompt processing in Foundry, in Public Preview. As agents and applications built on Foundry increasingly interact with sensitive data, Purview ensures those interactions are governed by trusted controls, identifying Sensitive Information Types (SITs) in real time to detect and protect confidential data embedded in prompts. For example, if a user includes customer PII or financial data in a prompt, Purview can automatically identify the sensitive content and block that prompt from being processed by the model. This ensures that all Foundry apps and agents, regardless of how they’re built or deployed, inherit consistent data protection – allowing organizations to reduce risk of inadvertent data exposure, centralize compliance enforcement across AI workloads, and confidently scale AI adoption knowing sensitive data is protected by design. We’re also building up on the Purview coverage for Foundry shared at the last Microsoft Ignite by announcing Purview insights embedded directly into the Foundry Control Plane, in General Availability, bringing rich data security context to the plane where developers already work. Purview surfaces crucial signals—such as SITs detected in the agentic interactions, % of agentic interactions involving sensitive data, and spread of high-risk users — so Foundry admins can know how AI apps and agents are built in their environment. This shift enables developers to make faster, better decisions in the moment, reducing rework and closing security gaps early on. For customers, the value is clear: stronger security by design and at enterprise scale, accelerated development cycles, and reduced risk of data leaks or compliance issues—without slowing down innovation. Innovating for developers everywhere, at the pace of AI growth Microsoft is also expanding Purview’s reach across the broader developer ecosystem. New integrations help organizations apply consistent oversight to AI tools and platforms developers already use, without adding separate compliance workflows. GitHub Copilot is a critical productivity layer for developers, accelerating how code is written and shipped—making it equally important that developer interactions with GitHub Copilot are governed and secured with the same rigor as enterprise data. Microsoft Purview now extends data governance and compliance capabilities to GitHub Copilot interactions, in Public Preview, enabling GitHub Enterprise customers with Entra SSO to stream audit logs directly into Purview. This brings centralized visibility for AI activity, allowing security and compliance teams to analyze GitHub Copilot agent session activity alongside other AI workloads. With this native integration into GitHub workflows, Purview audits Copilot activity across repositories, pull requests, and developer sessions—ensuring AI-generated code aligns with enterprise data policies, compliance requirements, and secure development standards. By integrating Purview into existing workflows, organizations can govern GitHub AI usage without building parallel pipelines—reducing complexity while ensuring consistent compliance coverage across their entire data estate. Today’s AI agents aren’t built in just one ecosystem—they span custom apps, third-party platforms, and open-source frameworks. Without consistent controls, this creates blind spots where sensitive data can be exposed outside enterprise guardrails. That’s why extending Purview protection beyond Microsoft environments is critical: it ensures developers can apply the same data security, DLP policies, and compliance controls to any agent, anywhere—so innovation can scale without increasing risk. Developers already use Microsoft Purview APIs to embed data protection into enterprise workflows. Today, we’re introducing the Microsoft Purview SDK for .NET — a simple, drop-in toolkit that brings Purview capabilities directly into any application, in Public Preview. Instead of weeks spent wiring APIs, authentication, and error handling, developers can add content scanning, DLP checks, and sensitivity labeling in just a few lines of code. The SDK handles the heavy lifting — including auth, retries, caching, and telemetry — so teams can focus on building experiences. For AI apps and agents built outside of the Microsoft AI platforms, SDK adds built-in support and can evaluate prompts and responses in real time against DLP and content policies — helping prevent data exposure at runtime without custom logic. Designed for both real-time and asynchronous patterns, and for authenticated or anonymous flows, the SDK also feeds activity back into Purview to give security teams centralized visibility and control. The bottom line is- the Microsoft Purview SDK enables developers to build AI apps and agents that are secure and compliant by default — cutting integration time from weeks to days while ensuring data protection scales with AI. The SDK will be available in public preview within the next month. Together, these announcements represent a significant step forward in how developers build secure AI systems. Microsoft Purview is no longer just a data security and compliance solution—it is a first-class layer of the development process by protecting data across AI applications and agents, and enables a bridge between developers and security teams. As AI becomes more agentic, distributed, and deeply connected to enterprise data, the need for built-in security will only grow. With Purview, developers no longer must choose between speed and security—they can build both into every application from the start Getting connected with Microsoft Purview and learn more Learn more about Microsoft Purview on our website and Microsoft Learn. Explore Agent 365. Try Microsoft Purview data security. Learn more about Microsoft Purview SDK.
