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Microsoft to Extends DLP Support for Copilot to Prevent Sensitive File Processing

Cybersecuritynews •Abinaya • February 25, 2026

Purview Data Loss Prevention (DLP) controls are being expanded to block Microsoft 365 Copilot from processing sensitivity-labeled files across all storage locations, including local devices. The change aims to close a critical governance gap in enterprise AI deployments. Previously, DLP policy enforcement for Copilot was limited to files stored in SharePoint Online and OneDrive for […]

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Microsoft Expands DLP Controls for Copilot to All Storage Locations Microsoft is enhancing its Purview Data Loss Prevention (DLP) controls to prevent the Microsoft 365 Copilot AI from processing sensitivity-labeled files across all storage locations, including local devices. Previously, DLP enforcement was limited to files in SharePoint Online and OneDrive. This update is expected to be deployed between late March and late April 2026. 2 sources 33

Microsoft to Extends DLP Support for Copilot to Prevent Sensitive File Processing

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