Microsoft expands Copilot data controls to all storage
🔒 Microsoft is extending Purview data loss prevention controls so the Microsoft 365 Copilot assistant cannot read or process sensitive Word, Excel, and PowerPoint files regardless of where they are stored. The change leverages the Office Augmentation Loop (AugLoop) component so Office clients can supply sensitivity labels for local files as well as for SharePoint and OneDrive. Microsoft will roll out the update between late March and late April 2026 and says it will be automatically enabled for tenants with DLP policies configured to block Copilot. The move follows a January bug that briefly allowed Copilot Chat to access and summarize protected emails.
