Microsoft adds Copilot data controls to all storage locations

Bleeping Computer

by Sergiu Gatlan

February 24, 2026

AI-Generated Deep Dive Summary

Microsoft has expanded its data loss prevention (DLP) controls to prevent the Microsoft 365 Copilot AI assistant from processing confidential Word, Excel, and PowerPoint documents stored in any location—whether on local devices or cloud platforms like SharePoint or OneDrive. This update addresses customer concerns about inconsistent protection across different file storage locations. Previously, DLP policies only applied to files stored in SharePoint or OneDrive, leaving locally stored documents vulnerable to potential unauthorized access by Copilot. The enhancement will be rolled out through the Augmentation Loop (AugLoop) Office component between late March

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Originally published on Bleeping Computer on 2/24/2026