From Traditional Security to AI-Driven Cyber Resilience: Microsoft’s Approach to Securing AI
By Chirag Mehta, Vice President and Principal Analyst - Constellation Research AI is changing the way organizations work. It helps teams write code, detect fraud, automate workflows, and make complex decisions faster than ever before. But as AI adoption increases, so do the risks, many of which traditional security tools were not designed to address. Cybersecurity leaders are starting to see that AI security is not just another layer of defense. It is becoming essential to building trust, ensuring resilience, and maintaining business continuity. Earlier this year, after many conversations with CISOs and CIOs, I saw a clear need to bring more attention to this topic. That led to my report on AI Security, which explores how AI-specific vulnerabilities differ from traditional cybersecurity risks and why securing AI systems calls for a more intentional approach. Why AI Changes the Security Landscape AI systems do not behave like traditional software. They learn from data instead of following pre-defined logic. This makes them powerful, but also vulnerable. For example, an AI model can: Misinterpret input in ways that humans cannot easily detect Be tricked into producing harmful or unintended responses through crafted prompts Leak sensitive training data in its outputs Take actions that go against business policies or legal requirements These are not coding flaws. They are risks that originate from how AI systems process information and act on it. These risks become more serious with agentic AI. These systems act on behalf of humans, interact with other software, and sometimes with other AI agents. They can make decisions, initiate actions, and change configurations. If one is compromised, the consequences can spread quickly. A key challenge is that many organizations still rely on traditional defenses to secure AI systems. While those tools remain necessary, they are no longer enough. AI introduces new risks across every layer of the stack, including data, networks, endpoints, applications, and cloud infrastructure. As I explained in my report, the security focus must shift from defending the perimeter to governing the behavior of AI systems, the data they use, and the decisions they make. The Shift Toward AI-Aware Cyber Resilience Cyber resilience is the ability to withstand, adapt to, and recover from attacks. Meeting that standard today requires understanding how AI is developed, deployed, and used by employees, customers, and partners. To get there, organizations must answer questions such as: Where is our sensitive data going, and is it being used safely to train models? What non-human identities, such as AI agents, are accessing systems and data? Can we detect when an AI system is being misused or manipulated? Are we in compliance with new AI regulations and data usage rules? Let’s look at how Microsoft has evolved its mature security portfolio to help protect AI workloads and support this shift toward resilience. Microsoft’s Approach to Secure AI Microsoft has taken a holistic and integrated approach to AI security. Rather than creating entirely new tools, it is extending existing products already used by millions to support AI workloads. These features span identity, data, endpoint, and cloud protection. 1. Microsoft Defender: Treating AI Workloads as Endpoints AI models and applications are emerging as a new class of infrastructure that needs visibility and protection. Defender for Cloud secures AI workloads across Azure and other cloud platforms such as AWS and GCP by monitoring model deployments and detecting vulnerabilities. Defender for Cloud Apps extends protection to AI-enabled apps running at the edge Defender for APIs supports AI systems that use APIs, which are often exposed to risks such as prompt injection or model manipulation Additionally, Microsoft has launched tools to support AI red-teaming, content safety, and continuous evaluation capabilities to ensure agents operate safely and as intended. This allows teams identify and remediate risks such as jailbreaks or prompt injection before models are deployed. 2. Microsoft Entra: Managing Non-Human Identities As organizations roll out more AI agents and copilots, non-human identities are becoming more common. These digital identities need strong oversight. Microsoft Entra helps create and manage identities for AI agents Conditional Access ensures AI agents only access the resources they need, based on real-time signals and context Privileged Identity Management manages, controls, and monitors AI agents access to important resources within an organization 3. Microsoft Purview: Securing Data Used in AI Purview plays an important role in securing both the data that powers AI apps and agents, and the data they generate through interactions. Data discovery and classification helps label sensitive information and track its use Data Loss Prevention policies help prevent leaks or misuse of data in tools such as Copilot or agents built in Azure AI Foundry Insider Risk Management alerts security teams when employees feed sensitive data into AI systems without approval Purview also helps organizations meet transparency and compliance requirements, extending the same policies they already use today to AI workloads, without requiring separate configurations, as regulations like the EU AI Act take effect. Here's a video that explains the above Microsoft security products: Securing AI Is Now a Strategic Priority AI is evolving quickly, and the risks are evolving with it. Traditional tools still matter, but they were not built for systems that learn, adapt, and act independently. They also weren’t designed for the pace and development approaches AI requires, where securing from the first line of code is critical to staying protected at scale. Microsoft is adapting its security portfolio to meet this shift. By strengthening identity, data, and endpoint protections, it is helping customers build a more resilient foundation. Whether you are launching your first AI-powered tool or managing dozens of agents across your organization, the priority is clear. Secure your AI systems before they become a point of weakness. You can read more in my AI Security report and learn how Microsoft is helping organizations secure AI supporting these efforts across its security portfolio.Block Access to Unsanctioned Apps with Microsoft Defender ATP & Cloud App Security
Microsoft Cloud App Security and Microsoft Defender ATP teams have partnered together to build a Microsoft Shadow IT visibility and control solution. After Shadow IT Discovery for endpoint users was officially announced earlier this year, we are now ready to move forward to the next phase of this integration and announce the preview of the functionality to block access to unsanctioned apps by leveraging Microsoft Defender network protection capability is now publicly available.Level Up Your App Governance With Microsoft Defender for Cloud Apps Workshop Series
Over the past two years, there has been a significant increase in nation-state attacks leveraging OAuth apps. These attacks often serve as entry points for privilege escalation, lateral movement, and damage. To effectively mitigate these risks, security teams need visibility and control over SaaS apps including GenAI apps to ensure that only trusted and compliant apps are in use. Join one of these workshops to learn: Real-world examples of OAuth attacks New pre-built templates and custom rules to simplify app governance How to quickly identify and mitigate risks from high-risk or suspicious apps Best practices for operationalizing app governance to improve your security posture These workshops are designed to accommodate global participation, with flexible date and time options. Who Should Attend: This training is ideal for anyone interested in securing OAuth apps and improving their organization’s overall SaaS security. Date Time Registration Link April 22 8:30-9:30am UTC (1:30-2:30am PST) Registration Closed April 23 6-7pm UTC (11am-12pm PST) Registration Closed May 1 3:30-4:30pm UTC (8:30-9:30am PST) Register May 8 (UPDATED) 1-2pm UTC (6-7am PST) Register May 14 (UPDATED) 10am-11am UTC (3-4am PST) Register More about app governance App governance in Defender for Cloud Apps is a set of security and policy management capabilities designed for OAuth-enabled apps registered on Microsoft Entra ID, Google, and Salesforce. App governance delivers visibility, remediation, and governance into how these apps and their users access, use, and share sensitive data in Microsoft 365 and other cloud platforms through actionable insights and automated policy alerts and actions. App governance also enables you to see which user-installed OAuth applications have access to data on Microsoft 365, Google Workspace, and Salesforce. It tells you what permissions the apps have, and which users have granted access to their accounts. Getting started with App governance View the App Governance> Overview tab in the Microsoft Defender Portal. Your sign-in account must have one of the administrator roles to view any app governance data. For more information, see Turn on app governance for Microsoft Defender for Cloud Apps. Questions? Please post below.Microsoft Defender for Cloud Apps - Ninja Training
Welcome to our Ninja Training for Microsoft Defender for Cloud Apps! Are you trying to protect your SaaS applications? Are you concerned about the posture of the apps you are using? Is shadow IT or AI a concern of yours? Then you are in the right place. The training below will aggregate all the relevant resources in one convenient location for you to learn from. Let’s start here with a quick overview of Microsoft Defender for Cloud Apps’ capabilities. Microsoft Defender for Cloud Apps | Microsoft Security Overview of Microsoft Defender for Cloud Apps and the capability of a SaaS Security solution. Overview - Microsoft Defender for Cloud Apps | Microsoft Learn Understand what Microsoft Defender for Cloud Apps is and read about its main capabilities. Quick Start The basic features of Defender for Cloud Apps require almost no effort to deploy. The recommended steps are to: Connect your apps Enable App Discovery Enable App Governance After enabling these features, all default detections and alerts will start triggering in the Microsoft Defender XDR console, and give you tremendous value with minimal configuration. Simplified SaaS Security Deployment with Microsoft Defender for Cloud Apps | Virtual Ninja Training Step-by-step video on how to quickly deploy Defender for Cloud Apps Get started - Microsoft Defender for Cloud Apps This quickstart describes how to start working with Microsoft Defender for Cloud Apps on the Microsoft Defender Portal. Review this if you prefer text to video Basic setup - Microsoft Defender for Cloud Apps The following procedure gives you instructions for customizing your Microsoft Defender for Cloud Apps environment. Connect apps to get visibility and control - Microsoft Defender for Cloud Apps App connectors use the APIs of app providers to enable greater visibility and control by Microsoft Defender for Cloud Apps over the apps you connect to. Make sure to connect all your available apps as you start your deployment Turn on app governance in Microsoft Defender for Cloud Apps App governance in Defender for Cloud Apps is a set of security and policy management capabilities designed for OAuth-enabled apps registered on Microsoft Entra ID, Google, and Salesforce. App governance delivers visibility, remediation, and governance into how these apps and their users access, use, and share sensitive data in Microsoft 365 and other cloud platforms through actionable insights out-of-the box threat detections, OAuth apps attack disruption, automated policy alerts and actions. It only takes a few minutes to enable and provide full visibility on your users’ Oauth app consents Shadow IT Discovery - Integrate with Microsoft Defender for Endpoint This article describes the out-of-the-box integration available between Microsoft Defender for Cloud Apps and Microsoft Defender for Endpoint, which simplifies cloud discovery and enabling device-based investigation. Control cloud apps with policies Policies in Microsoft Defender for Cloud Apps help define user behavior in the cloud, detect risky activities, and enable remediation workflows. There are various types of policies, such as Activity, Anomaly Detection, OAuth App, Malware Detection, File, Access, Session, and App Discovery policies. These policies help mitigate risks like access control, compliance, data loss prevention, and threat detection. Detect Threats and malicious behavior After connecting your cloud apps in Defender for Cloud Apps, you will start seeing alerts in your XDR portal. Here are resources to learn more about these alerts and how to investigate them. Note that we are constantly adding new built-in detections, and they are not necessarily part of our public documentation. How to manage incidents - Microsoft Defender XDR Learn how to manage incidents, from various sources, using Microsoft Defender XDR. How to investigate anomaly detection alerts Microsoft Defender for Cloud Apps provides detections for malicious activities. This guide provides you with general and practical information on each alert, to help with your investigation and remediation tasks. Note that detections are added on a regular basis, and not all of them will have entries in this guide. Configure automatic attack disruption in Microsoft Defender XDR - Microsoft Defender XDR | Microsoft Learn Learn how to take advantage of XDR capabilities to automatically disrupt high confidence attacks before damage is done. OAuth apps are natively integrated as part of Microsoft XDR. Create activity policies - Microsoft Defender for Cloud Apps | Microsoft Learn In addition to all the built-in detections as part of Microsoft Defender for Cloud Apps, you can also create your own policies, including Governance actions, based on the Activity log captured by Defender for Cloud Apps. Create and manage custom detection rules in Microsoft Defender XDR - Microsoft Defender XDR | Microsoft Learn Learn how to leverage XDR custom detection rules based on hunting data in the platform. CloudAppEvents table in the advanced hunting schema - Microsoft Defender XDR | Microsoft Learn Learn about the CloudAppEvents table which contains events from all connected applications with data enriched by Defender for Cloud Apps in a common schema. This data can be hunted across all connected apps and your separate XDR workloads. Investigate behaviors with advanced hunting - Microsoft Defender for Cloud Apps | Microsoft Learn Learn about behaviors and how they can help with security investigations. Investigate activities - Microsoft Defender for Cloud Apps | Microsoft Learn Learn how to search the activity log and investigate activities with a simple UI without the need for KQL App Governance – Protect from App-to-App attack scenario App governance in Microsoft Defender for Cloud Apps is crucial for several reasons. It enhances security by identifying and mitigating risks associated with OAuth-enabled apps, which can be exploited for privilege escalation, lateral movement, and data exfiltration. Organizations gain clear visibility into app compliance, allowing them to monitor how apps access, use, and share sensitive data. It provides alerts for anomalous behaviors, enabling quick responses to potential threats. Automated policy alerts and remediation actions help enforce compliance and protect against noncompliant or malicious apps. By governing app access, organizations can better safeguard their data across various cloud platforms. These features collectively ensure a robust security posture, protecting both data and users from potential threats. Get started with App governance - Microsoft Defender for Cloud Apps Learn how app governance enhances the security of SaaS ecosystems like Microsoft 365, Google Workspace, and Salesforce. This video details how app governance identifies integrated OAuth apps, detects and prevents suspicious activity, and provides in-depth monitoring and visibility into app metadata and behaviors to help strengthen your overall security posture. App governance in Microsoft Defender for Cloud Apps and Microsoft Defender XDR - Microsoft Defender for Cloud Apps | Microsoft Learn Defender for Cloud Apps App governance overview Create app governance policies - Microsoft Defender for Cloud Apps | Microsoft Learn Many third-party productivity apps request access to user data and sign in on behalf of users for other cloud apps like Microsoft 365, Google Workspace, and Salesforce. Users often accept these permissions without reviewing the details, posing security risks. IT departments may lack insight into balancing an app's security risk with its productivity benefits. Monitoring app permissions provides visibility and control to protect your users and applications. App governance visibility and insights - Microsoft Defender for Cloud Apps | Microsoft Learn Managing your applications requires robust visibility and insight. Microsoft Defender for Cloud Apps offers control through in-depth insights into user activities, data flows, and threats, enabling effective monitoring, anomaly detection, and compliance Reduce overprivileged permissions and apps Recommendations for reducing overprivileged permissions App Governance plays a critical role in governing applications in Entra ID. By integrating with Entra ID, App Governance provides deeper insights into application permissions and usage within your identity infrastructure. This correlation enables administrators to enforce stringent access controls and monitor applications more effectively, ensuring compliance and reducing potential security vulnerabilities. This page offers guidelines for reducing unnecessary permissions, focusing on the principle of least privilege to minimize security risks and mitigate the impact of breaches. Investigate app governance threat detection alerts List of app governance threat detection alerts classified according to MITRE ATT&CK and investigation guidance Manage app governance alerts Learn how to govern applications and respond to threat and risky applications directly from app governance or through policies. Hunt for threats in app activities Learn how to hunt for app activities directly form the XDR console (Microsoft 365 Connector required as discussed in quick start section). How to Protect Oauth Apps with App Governance in Microsoft Defender for Cloud Apps Webinar | How to Protect Oauth Apps with App Governance in Microsoft Defender for Cloud Apps. Learn how to protect Oauth applications in your environment, how to efficiently use App governance within Microsoft Defender for Cloud Apps to protect your connected apps and raise your security posture. App Governance is a Key Part of a Customers' Zero Trust Journey Webinar| learn about how the app governance add-on to Microsoft Defender for Cloud Apps is a key component of customers' Zero Trust journey. We will examine how app governance supports managing to least privilege (including identifying unused permissions), provides threat detections that are able and have already protected customers, and gives insights on risky app behaviors even for trusted apps. App Governance Inclusion in Defender for Cloud Apps Overview Webinar| App governance overview and licensing requirements. Frequently asked questions about app governance App governance FAQ Manage the security Posture of your SaaS (SSPM) One of the key components of Microsoft Defender for Cloud Apps is the ability to gain key information about the Security posture of your applications in the cloud (AKA: SaaS). This can give you a proactive approach to help avoid breaches before they happen. SaaS Security posture Management (or SSPM) is part the greater Exposure Management offering, and allows you to review the security configuration of your key apps. More details in the links below: Transform your defense: Microsoft Security Exposure Management | Microsoft Secure Tech Accelerator Overview of Microsoft Exposure Management and it’s capabilities, including how MDA & SSPM feed into this. SaaS Security Posture Management (SSPM) - Overview - Microsoft Defender for Cloud Apps | Microsoft Learn Understand simply how SSPM can help you increase the safety of your environment Turn on and manage SaaS security posture management (SSPM) - Microsoft Defender for Cloud Apps | Microsoft Learn Enabling SSPM in Defender for Cloud Apps requires almost no additional configuration (as long as your apps are already connected), and no extra license. We strongly recommend turning it on, and monitoring its results, as the cost of operation is very low. SaaS Security Initiative - Microsoft Defender for Cloud Apps | Microsoft Learn The SaaS Security Initiative provides a centralized place for software as a service (SaaS) security best practices, so that organizations can manage and prioritize security recommendations effectively. By focusing on the most impactful metrics, organizations can enhance their SaaS security posture. Secure your usage of AI applications AI is Information technologies’ newest tool and strongest innovation area. As we know it also brings its fair share of challenges. Defender for Cloud Apps can help you face these from two different angles: - First, our App Discovery capabilities give you a complete vision of all the Generative AI applications in use in an environment - Second, we provide threat detection capabilities to identify and alert from suspicious usage of Copilot for Microsoft 365, along with the ability to create custom detection using KQL queries. Secure AI applications using Microsoft Defender for Cloud Apps Overview of Microsoft Defender for Cloud Apps capabilities to secure your usage of Generative AI apps Step-by-Step: Discover Which Generative AI Apps Are Used in Your Environment Using Defender for Cloud Apps Detailed video-guide to deploy Discovery of Gen AI apps in your environment in a few minutes Step-by-Step: Protect Your Usage of Copilot for M365 Using Microsoft Defender for Cloud Apps Instructions and examples on how to leverage threat protection and advanced hunting capabilities to detect any risky or suspicious usage of Copilot for Microsoft 365 Get visibility into DeepSeek with Microsoft Defender for Cloud Apps Understand how fast the Microsoft Defender for Cloud Apps team can react when new apps or new threats come in the market. Discover Shadow IT applications Shadow IT and Shadow AI are two big challenges that organizations face today. Defender for Cloud Apps can help give you visibility you need, this will allow you to evaluate the risks, assess for compliance and apply controls over what can be used. Getting started The first step is to ensure the relevant data sources are connected to Defender for Cloud Apps to provide you the required visibility: Integrate Microsoft Defender for Endpoint - Microsoft Defender for Cloud Apps | Microsoft Learn The quickest and most seamless method to get visibility of cloud app usage is to integrate MDA with MDE (MDE license required). Create snapshot cloud discovery reports - Microsoft Defender for Cloud Apps | Microsoft Learn A sample set of logs can be ingested to generate a Snapshot. This lets you view the quality of the data before long term ingestion and also be used for investigations. Configure automatic log upload for continuous reports - Microsoft Defender for Cloud Apps | Microsoft Learn A log collector can be deployed to facilitate the collection of logs from your network appliances, such as firewalls or proxies. Defender for Cloud Apps cloud discovery API - Microsoft Defender for Cloud Apps | Microsoft Learn MDA also offers a Cloud Discovery API which can be used to directly ingest log information and mitigate the need for a log collector. Evaluate Discovered Apps Once Cloud Discovery logs are being populated into Defender for Cloud Apps, you can start the process of evaluating the discovered apps. This includes reviewing their usage, user count, risk scores and compliance factors. View discovered apps on the Cloud discovery dashboard - Microsoft Defender for Cloud Apps | Microsoft Learn View & evaluate the discovered apps within Cloud Discovery and Generate Cloud Discovery Executive Reports Working with the app page - Microsoft Defender for Cloud Apps | Microsoft Learn Investigate app usage and evaluate their compliance and risk factors Discovered app filters and queries - Microsoft Defender for Cloud Apps | Microsoft Learn Apply granular filtering and app tagging to focus on apps that are important to you Work with discovered apps via Graph API - Microsoft Defender for Cloud Apps | Microsoft Learn Investigate discovered apps via the Microsoft Graph API Add custom apps to cloud discovery - Microsoft Defender for Cloud Apps | Microsoft Learn You can add custom apps to the catalog which can then be matched against log data. This is useful for LOB applications. Govern Discovered Apps Having evaluated your discovered apps, you can then take some decisions on what level of governance and control each of the applications require and whether you want custom policies to help govern future applications: Govern discovered apps using Microsoft Defender for Endpoint - Microsoft Defender for Cloud Apps | Microsoft Learn Setup governance enforcement actions when using Microsoft Defender for Endpoint Govern discovered apps - Microsoft Defender for Cloud Apps | Microsoft Learn Apply governance actions to discovered apps from within the Cloud Discovery area Create cloud discovery policies - Microsoft Defender for Cloud Apps | Microsoft Learn Create custom Cloud Discovery policies to identify usage, alert and apply controls Operations and investigations - Sample AH queries - Tips on investigation - (section for SOC) Advanced Hunting Compromised and malicious applications investigation | Microsoft Learn Investigate anomalous app configuration changes Impersonation and EWS in Exchange | Microsoft Learn Audits impersonate privileges in Exchange Online Advanced Hunting Queries Azure-Sentinel/Solutions/Microsoft Entra ID/Analytic Rules/ExchangeFullAccessGrantedToApp.yaml at master · Azure/Azure-Sentinel · GitHub This detection looks for the full_access_as_app permission being granted to an OAuth application with Admin Consent. This permission provide access to all Exchange mailboxes via the EWS API can could be exploited to access sensitive data by being added to a compromised application. The application granted this permission should be reviewed to ensure that it is absolutely necessary for the applications function Azure-Sentinel/Solutions/Microsoft Entra ID/Analytic Rules/AdminPromoAfterRoleMgmtAppPermissionGrant.yaml at master · Azure/Azure-Sentinel · GitHub This rule looks for a service principal being granted permissions that could be used to add a Microsoft Entra ID object or user account to an Admin directory role. Azure-Sentinel/Solutions/Microsoft Entra ID/Analytic Rules/SuspiciousOAuthApp_OfflineAccess.yaml at master · Azure/Azure-Sentinel · GitHub Offline access will provide the Azure App with access to the listed resources without requiring two-factor authentication. Consent to applications with offline access and read capabilities should be rare, especially as the known Applications list is expanded Best Practice recommendations Common threat protection policies - Microsoft Defender for Cloud Apps | Microsoft Learn Common Defender for Cloud Apps Threat Protection policies Recommended Microsoft Defender for Cloud Apps policies for SaaS apps | Microsoft Learn Recommended Microsoft Defender for Cloud Apps policies for SaaS apps Best practices for protecting your organization - Microsoft Defender for Cloud Apps | Microsoft Learn Best practices for protecting your organization with Defender for Cloud Apps Completion certificate! Click here to get your shareable completion certificate!! Advanced configuration Training Title Description Importing user groups from connect apps This article outlines the steps on how to import user groups from connected apps Manage Admin Access This article describes how to manage admin access in Microsoft Defender for Cloud Apps. Configure MSSP Access In this video, we walk through the steps on adding Managed Security Service Provider (MSSP) access to Microsoft Defender for Cloud Apps. Provide managed security service provider (MSSP) access - Microsoft Defender XDR | Microsoft Learn Provide managed security service provider (MSSP) access Integrate with Secure Web Gateways Microsoft Defender for Cloud Apps integrates with several secure web gateways available in the market. Here are the links to configure this integration. Integrate with Zscaler Integrate with iboss Integrate with Corrata Integrate with Menlo Additional resources Microsoft Defender for Cloud Apps Tech Community This is a Microsoft Defender for Cloud Apps Community space that allows users to connect and discuss the latest news, upgrades, and best practices with Microsoft professionals and peers.
