Microsoft Tightens Copilot Privacy by Extending DLP to All Office Docs
Microsoft is extending its data loss prevention controls to all Office documents—whether local, SharePoint, or OneDrive—so Copilot cannot process restricted content, with the change rolling out via AugLoop between March and April 2026 and auto-enabling for existing DLP policies; it follows a prior bug that briefly allowed Copilot to summarize confidential emails, and does not change Copilot's capabilities, only how labels are read to enforce DLP.
