Microsoft Copilot Update: Data Loss Prevention with Sensitive Information Types

Microsoft continues to strengthen data protection for AI-powered productivity with new Data Loss Prevention (DLP) capabilities for Microsoft Copilot and Copilot Chat. This update demonstrates how organizations can apply Sensitive Information Types (SITs) to enforce DLP policies across Copilot experiences in Word, Excel, PowerPoint, and Copilot Chat—helping prevent accidental exposure of regulated or confidential data while still enabling AI-driven workflows.

What’s New

  • DLP policies for Copilot interactions using Sensitive Information Types
  • Real-time policy enforcement and alerting when sensitive data is detected
  • Consistent protection across Microsoft 365 apps and Copilot experiences
  • Simplified configuration for scaling DLP across departments and users

Why It Matters

As AI becomes embedded in daily work, protecting sensitive data is critical—especially for industries like healthcare, finance, and compliance-driven organizations. These new DLP controls make it easier to balance innovation and security, ensuring Copilot can be used safely without increasing data leakage risk.

What This Means for Organizations

Organizations can now adopt Microsoft Copilot with greater confidence by applying familiar Microsoft Purview–based DLP controls to AI interactions. This helps security and compliance teams maintain visibility, enforce policies, and support responsible AI usage at scale.