Empowering Secure AI Innovation: Data Security and Compliance for AI Agents

Microsoft

May 29, 2025

As organizations embrace the transformative power of generative AI, agentic AI is quickly becoming a core part of enterprise innovation. Whether organizations are just beginning their AI journey or scaling advanced solutions, one thing is clear: agents are poised to transform every function and workflow across organizations. IDC predicts that over 1 billion new business process agents will be created in the next four years¹.

This surge in AI adoption is empowering employees across roles – from low-code makers to pro-code developers – to build and use AI in new ways. Business leaders are eager to support this momentum, but they also recognize the need to innovate responsibly with AI.

Microsoft Purview’s evolution

When Microsoft 365 Copilot launched in November 2022, it sparked a wave of excitement and an immediate question: how do we secure and govern the data powering these AI experiences?

Microsoft Purview quickly evolved to meet this need, extending its data security and compliance capabilities to the Microsoft 365 Copilot ecosystem. It delivered discoverability, protection, and governance value that helped customers discover data risks such as data oversharing, protect sensitive data to prevent data loss and insider risks, and govern AI usage to meet regulations and policies.

Now, as customers move beyond pre-built agents like Copilot to develop their own AI agents and applications, Microsoft Purview has evolved to extend the same data protections built for Microsoft 365 Copilot to AI agents. Today, those protections span the entire development spectrum—from no-code and low-code tools like Copilot Studio to pro-code environments such as Azure AI Foundry.

Microsoft Purview helps address challenges across the development spectrum

Makers – typically business users or citizen developers who build solutions using low-code or no-code tools – shouldn’t need to become security experts to build AI responsibly. Yet, without proper safeguards, these agents can inadvertently expose sensitive data or violate compliance policies. That is why with Microsoft Purview, security and IT teams can feel confident about the agents being built in their organizations. When makers build agents through the Agent Builder or directly in Copilot Studio, security admins can set up Microsoft Purview’s data security and compliance controls that work behind the scenes to support makers in building secure and compliant agents. These controls automatically enforce policies, monitor data access, and ensure compliance without requiring the maker to become a security expert without requiring makers to take additional actions.

In fact, a recent Microsoft study found that 71% of developer decision-makers acknowledge that these constraints result in security trade-offs and development delays². Pro-code developers are under increasing pressure to deliver fast, flexible, and seamlessly integrated solutions, yet data security often becomes a deployment blocker or an afterthought.

Building enterprise-grade data security and compliance capabilities from scratch is not only time-consuming but also requires deep domain expertise. This is where Microsoft Purview steps in. As an industry leader in data security and compliance, Purview does the heavy lifting, so developers don’t have to. Now in preview, Purview SDK can be used by developers to embed robust, enterprise-ready data protections directly into their AI applications, instead of building complex security frameworks on their own.

The Purview SDK is a comprehensive set of REST APIs, documentation, and code samples, allowing developers to easily incorporate Microsoft Purview’s capabilities into their workflows—regardless of their integrated development environment (IDE). This empowers them to move fast without compromising on security or compliance and at the same time, Microsoft Purview helps security teams remain in control.

Figure 1: By embedding Purview APIs into the IDE, developers help enable their AI apps to be secured and governed at runtime

Startups, ISVs, and partners can leverage the Purview SDK to seamlessly integrate Purview’s industry-leading features into their AI agents and applications. This enables their offerings to become Purview-aware, empowering customers to more easily secure and govern data within their AI environments. For example, Qusitive Chief Technology Offer, Christian Veillete indicates “The synergistic integration of MazikCare, the Quisitive Intelligence Platform, and the data compliance power of Purview SDK, including its DSPM for AI, forms a foundational pillar for trustworthy and safe AI-driven healthcare transformations. This powerful combination ensures continuous oversight and instant enforcement of compliance policies, giving IT leadership full assurance in the output of every AI model and upholding the highest safety standards. By centralizing policy enforcement, security concerns are significantly eased, empowering leadership to confidently steer their organizations through the AI transformation journey.”

Microsoft partner, Infotechtion, has also leveraged the new Purview SDK to embed Purview value into their GenAI initiatives. Vivek Bhatt, Infotechtion’s Chief Technology Officer says, “Embedding Purview SDK into Infotechtion's AI governance solution improved trust and security by aligning Gen-AI interactions with Microsoft Purview's enterprise policies.”

Microsoft Purview also natively integrates with Azure AI Foundry, enabling seamless, built-in security and compliance for AI workloads without requiring additional development effort. With this integration, signals from Azure AI Foundry are automatically surfaced in Microsoft Purview’s Data Security Posture Management (DSPM) for AI, Insider Risk Management, and compliance solutions. This means security teams can monitor AI usage, detect data risks, and enforce compliance policies across AI agents and applications—whether they’re built in-house or with Azure AI Foundry models. This reinforces Microsoft’s commitment to delivering secure-by-default AI innovation—empowering organizations to scale responsibly with confidence.

Figure 2: Data security admins can now find data security and compliance insights across Microsoft Copilots, agents built with Agent Builder and Copilot Studio, and custom AI apps and agents in Microsoft Purview DSPM for AI.

Explore more partner case studies from Ernst & Young and Infosys to see how they’re leveraging Purview SDK. Learn more about Purview SDK and Microsoft Purview for Azure AI Foundry.

Unified visibility and control

Whether supporting pro-code developers or low-code makers, Microsoft Purview enables organizations to secure and govern AI across organizations. With Purview, security teams can discover data security risks, protect sensitive data against data leakage and insider risks, and govern AI interactions.

Discover data security risks

With Data Security Posture Management (DSPM) for AI, data security teams can discover detailed data risk insights in AI interactions across Microsoft Copilots, agents built in Agent Builder and Copilot Studio, and custom AI apps and agents.

Figure 3: Data security admins can now find data security and compliance insights across Microsoft Copilots, agents built with Agent Builder and Copilot Studio, and custom AI apps and agents all in Microsoft Purview DSPM for AI.

Protect sensitive data against data leaks and insider risks

In DSPM for AI, data security admins can also get recommended insights to improve their organization’s security posture like minimizing risks of data oversharing. For example, an admin might get a recommendation to set up a data loss prevention (DLP) policy that prevents agents in Microsoft 365 Copilot from using certain labeled documents as grounding data to generate summaries or responses. By setting up this policy, organizations can prevent confidential legal documents—with specific language that could lead to improper guidance—from being summarized. It also ensures that “Internal only” documents aren’t used to create content that might be shared outside the organization.

Figure 4: Extend data loss prevention (DLP) policies to agents in Microsoft 365 to protect sensitive data.

Agents often pull data from sources like SharePoint and Dataverse, and Microsoft Purview helps protect that data every step of the way. It honors sensitivity labels, enforces access permissions, and applies label inheritance so that AI-generated content carries the same protections as its source. With auto-labeling in Dataverse, sensitive data is classified as soon as it’s ingested—reducing manual effort and maintaining consistent protection. When responses draw from multiple sources with different labels, the most restrictive label is applied to uphold compliance and minimize risk.

Figure 5: Sensitivity labels will be automatically applied to data in Dataverse.Figure 6: AI-generated responses will inherit and honor the source data’s sensitivity labels.

In addition to data and permission controls that help address data oversharing or leakage, security teams also need ways to detect users' risky activities in AI apps and agents that could potentially lead to data security incidents. With risky AI usage indicators, policy template, and analytics report in Microsoft Purview Insider Risk Management, security teams with appropriate permissions can detect risky activities. For example, there could be a departing employee receiving an unusual number of AI responses across Copilots and agents containing sensitive data, deviating from their past activity patterns. Security teams can then effectively detect and respond to these potential incidents to minimize the negative impact. For example, they can configure Adaptive Protection to automatically block a high-risk user from accessing sensitive data.

Figure 7: An Insider Risk Management alert from a Risky AI usage policy shows a user with anomalous activities.

Govern AI Interactions to detect non-compliant usage

Microsoft Purview provides a comprehensive set of tools to govern AI usage and detect non-compliant user activities. AI interactions across Microsoft Copilots, AI apps and agents, are recorded in Audit logs. eDiscovery enables legal and compliance teams with appropriate permissions to collect and review AI-generated content for internal investigations or litigation. Data Lifecycle Management enables teams to set policies to retain or dispose of AI interactions, while Communication Compliance helps detect risky or inappropriate use of AI, such as harmful content or other violations against code-of-conduct policies. Together, these capabilities give organizations the visibility and control they need to innovate responsibly with AI.

Figure 8: AI interactions across Microsoft Copilots, AI apps and agents are recorded in Audit logs.

Figure 9: AI interactions across Microsoft Copilots, AI apps and agents can be collected and reviewed in eDiscovery.

Figure 10: Microsoft Purview Communication Compliance can detect non-compliant content in AI prompts across Microsoft Copilots, AI apps and agents.

Securing the Future of AI Innovation — Explore Additional Resources

As organizations accelerate their adoption of agentic AI, the need for built-in security and compliance has never been more critical. Microsoft Purview empowers both makers and developers to innovate with confidence—ensuring that every AI interaction is secure, compliant, and aligned with enterprise standards. By embedding protection across the entire development lifecycle, Purview helps organizations unlock the full potential of AI while maintaining the trust, transparency, and control that responsible innovation demands.

To dive deeper into how Microsoft Purview supports secure AI development, explore our additional resources, documentation, and integration guides: