Microsoft is expanding Purview data loss prevention controls so Microsoft 365 Copilot cannot process confidential Word, Excel, and PowerPoint documents regardless of where they are stored. The change will be deployed via the Augmentation Loop (AugLoop) between late March and late April 2026 and is being auto-enabled for organizations with DLP policies, following a Copilot Chat bug that briefly allowed summarization of confidential Sent Items and Drafts. #Microsoft365Copilot #MicrosoftPurviewDLP #AugLoop #CopilotChatBug
Keypoints
- Purview DLP will block Copilot from processing sensitivity-labeled Word, Excel, and PowerPoint files regardless of storage location.
- Prior enforcement applied only to files stored in SharePoint and OneDrive, leaving local device files unprotected.
- The update is being rolled out through the AugLoop Office component between late March and late April 2026.
- Organizations with DLP policies configured to block Copilot will have the protection enabled automatically without admin action.
- The enhancement follows a Copilot Chat bug that briefly allowed access to and summarization of confidential emails in Sent Items and Drafts.