Securing Microsoft Copilot
Purview DLP & Insider Risk with Alan Cox [Microsoft MVP]
The rapid integration of Artificial Intelligence into the workplace has brought about a paradigm shift in how we handle data. While Microsoft Copilot offers unprecedented productivity gains, it also raises critical questions about data security, over-sharing, and corporate governance. In a recent episode of the 365 FM podcast, Microsoft MVP Alan Cox shared his expertise on navigating this new landscape using Microsoft Purview, Data Loss Prevention (DLP), and Insider Risk Management.
For organizations looking to deploy AI responsibly, the message is clear: Copilot doesn’t necessarily create new risks, but it acts as a powerful spotlight that can surface existing ones. Understanding how to manage these risks through robust governance is the key to a successful AI strategy.
Understanding the Difference: Governance vs. Compliance
In the world of Microsoft 365, the terms “governance,” “compliance,” and “security” are often used interchangeably, but Alan Cox argues that they represent distinct disciplines. Understanding these differences is the first step toward a secure AI environment.
Compliance is “Looking Back”: Compliance focuses on meeting regulatory requirements and industry standards. It often involves auditing past actions to ensure the organization has adhered to specific rules (such as HIPAA, GDPR, or SEC regulations).
Governance is “Looking Forward”: Governance is about setting the stage for future safety. It involves establishing processes and frameworks that prevent breaches before they happen.
Alan uses a vivid analogy from the world of NASCAR racing to explain governance: “A governor on a car slows it down to keep it safe. Governance isn’t just about control; it’s about pumping the brakes and looking at the big picture to ensure the process is safe.” Effective governance keeps your organization off the news by preventing the “major breaks” that lead to public data breaches.
The Copilot Reality: Surfacing Existing Risks
One of the most common fears regarding AI is that it will introduce entirely new vulnerabilities into a network. However, the reality is more nuanced. Microsoft Copilot operates within the existing security context of the user. If a user has access to a sensitive file, even if they shouldn’t, Copilot can find and summarize that information.
Over-permissioning and over-sharing are the primary culprits. In many organizations, files are often shared with “Everyone except external users” or stored in public Teams channels where they don’t belong. Before AI, these files might have remained buried in deep folder structures, effectively “security through obscurity.” With Copilot, those files are now just a prompt away.
Alan emphasizes that any organization embarking on an AI journey must first conduct a Copilot Readiness Assessment. This involves asking one fundamental question: “Do you know who has access to every bit of information in your environment?” Since the answer is almost always “no,” the implementation of Purview controls becomes essential.
Protecting Data with Microsoft Purview
Microsoft Purview (formerly the Microsoft 365 Compliance Portal) is the primary toolset for managing data governance. The name itself reflects its purpose: to bring things into purview or focus. It puts a spotlight on data that might otherwise be hidden under the digital curtains of a vast enterprise environment.
Data Loss Prevention (DLP) for AI
DLP is a cornerstone of the Purview suite. It allows administrators to create policies that identify, monitor, and automatically protect sensitive information across the Microsoft 365 ecosystem. When applied to Copilot, DLP can prevent the AI from processing or surfacing data that contains specific sensitive info types, such as credit card numbers, social security numbers, or proprietary corporate code.
Sensitivity Labels
By using sensitivity labels, organizations can tag data as “Confidential” or “Highly Confidential.” Copilot respects these labels. If a document is labeled in a way that restricts certain users, Copilot will not include that document’s content in its responses to those users, providing an automated layer of protection that scales with the organization.
Rethinking Insider Risk Management
When people hear the term “Insider Risk,” they often envision a “malicious actor” or a disgruntled employee trying to steal trade secrets. While those scenarios exist, they represent a small fraction of actual risk. According to Alan, 90% of insider risk comes from people who have no ill intent.
Most risks are the result of accidental mistakes or “poking around” out of curiosity. A well-meaning employee might ask Copilot about corporate credit cards or salary structures simply because they are testing the tool’s capabilities. Purview’s Insider Risk Management can detect these patterns and alert administrators to potential “over-sharing” incidents without assuming the user is acting maliciously.
“I’m trying to protect you from yourself,” Alan explains. By using Adaptive Protection, Purview can adjust security controls based on a user’s risk level. If a user is flagged for high-risk activity, their permissions might be temporarily restricted automatically, preventing accidental data exfiltration.
The Integration of Identity and Security
A modern governance strategy doesn’t exist in a vacuum. It requires a tight integration between several Microsoft platforms:
Entra ID (formerly Azure AD): Governance is increasingly tied to identity. Managing who a user is and what groups they belong to is the foundation of access control.
Microsoft Defender: Alerts from Purview DLP and Insider Risk Management now feed directly into the Microsoft Defender portal. This gives security teams a “single pane of glass” to view both external threats (like malware) and internal risks (like data over-sharing).
Communication Compliance: This ensures that the prompts sent to Copilot and the responses generated adhere to corporate conduct policies, preventing the AI from being used to generate inappropriate or harmful content.
Actionable Insights for AI Readiness
If your organization is planning to roll out Microsoft Copilot, Alan Cox suggests the following steps to ensure your governance is up to the task:
Audit Permissions: Use tools within Purview to identify where sensitive data is over-shared. Look for “hidden” permissions in SharePoint and Teams.
Implement Sensitivity Labels: Start labeling your data now. The more organized your data is before Copilot arrives, the safer your deployment will be.
Define “Sensitive” for Your Industry: Whether you are governed by HIPAA, FedRAMP, or SEC regulations, ensure your DLP policies are tailored to the specific data types that matter most to your business.
Educate the Workforce: Governance is as much about people as it is about technology. Help employees understand that Copilot is a tool for productivity, but it must be used within the guardrails of corporate policy.
Monitor and Iterate: Use the Activity Explorer in Purview to see how people are interacting with Copilot. Use these insights to refine your policies over time.
Conclusion
The arrival of Microsoft Copilot is an exciting milestone in workplace technology, but it requires a mature approach to data governance. As Alan Cox highlighted, Microsoft Purview provides the necessary “spotlight” to see into the dark corners of your data environment, allowing you to clean up over-permissioning and mitigate insider risk before they become headlines.
By focusing on Data Loss Prevention, Insider Risk Management, and Identity Governance, organizations can move beyond the fear of AI and embrace its potential with confidence. Remember, governance isn’t about stopping progress, it’s about ensuring that progress happens safely, keeping your data secure and your organization off the news.