Microsoft Extends DLP Policy for Copilot to Office Apps

DLP policy for Copilot

First introduced in March 2025 to block access to sensitive documents by BizChat, Microsoft has extended the DLP policy for Copilot to cover the web and desktop versions of the Office apps (Word, Excel, and PowerPoint). The implementation works but could confuse users. It might be better if Microsoft simply removes all traces of Copilot when working with files subject to the DLP policy.

Microsoft Closes Gap to Enable Mandatory Labeling of Existing Documents

A change in how Office apps apply mandatory labeling as dictated by sensitivity label policies means that both new and old documents are processed. New documents have always been dealt with; the change being made ensures that Office apps detect the lack of a label when opening an existing document and will apply mandatory labeling at that point. It’s a change to help customers move on from the unified labeling client.