Purview Data Protection & AI Governance
AB-650 Exam Alignment
AB-650
Domain 2 — Implement Microsoft Purview data protection and governance: implement DLP policies for Exchange, SharePoint, OneDrive, Teams, endpoints, and Copilot; implement information protection using SITs, sensitivity labels, and label policies; implement data lifecycle management with retention labels and policies; review DLP alerts for M365 and AI services; implement Purview DSPM for AI to monitor and secure AI activity.
- Know the four sensitivity label scopes: files & emails, meetings, groups & sites, schematised data assets
- Understand the difference between DLP policy tips (informational, shown to user) vs DLP alerts (sent to admins/security team)
- Know that Purview DSPM for AI is specifically designed to monitor AI interactions — including Copilot prompts and responses that may contain sensitive data
- Understand retention label vs retention policy: labels apply to individual items; policies apply to entire locations (all Exchange mailboxes, all SharePoint sites)
🔒 Data Loss Prevention (DLP)
DLP policies prevent the sharing of sensitive information — credit card numbers, health records, national IDs — across M365 workloads. In AB-650, DLP extends to Copilot interactions as a dedicated location.
| DLP Location | What It Monitors | Possible Actions |
|---|---|---|
| Exchange Online | Email content including attachments | Block send, encrypt, notify sender, generate alert |
| SharePoint Online | Files stored in SharePoint sites | Block sharing, restrict access, apply label, alert |
| OneDrive | Files in OneDrive for Business | Block sharing, restrict access, apply label, alert |
| Microsoft Teams | Chat messages and channel messages (content, not files separately) | Block message, notify user, generate alert |
| Endpoints (MDE) | Files on Windows 10/11 devices enrolled in Microsoft Defender for Endpoint | Block copy to USB, block upload to cloud, block print, block clipboard operations |
| Microsoft 365 Copilot 🔥 | Prompts submitted to Copilot and Copilot responses that contain or reference sensitive data | Block Copilot response, display policy tip in Copilot interface, generate compliance alert |
🔥 New in AB-650: DLP for Microsoft 365 Copilot
DLP policies can now target Microsoft 365 Copilot as a dedicated location. When sensitive information (e.g. credit card numbers, NHS numbers, patient data) appears in a Copilot prompt or Copilot surfaces it in a response from SharePoint or Exchange, DLP can: (1) block the Copilot response from being shown to the user; (2) display a policy tip within Copilot Chat informing the user why the response was blocked; (3) generate a DLP alert in the Purview compliance portal for the security team to review. This is configured in the Microsoft Purview compliance portal → Data loss prevention → Policies → Add location: Microsoft 365 Copilot.
🏷️ Sensitivity Labels & SITs
| Concept | Description | AB-650 Key Points |
|---|---|---|
| Sensitive Information Types (SITs) | Pattern-based classifiers that detect specific data types (credit cards, SSNs, NHS numbers, passport numbers). Used as conditions in DLP policies and sensitivity label auto-labeling. | There are 200+ built-in SITs. Custom SITs can be created using regex patterns and keyword lists. Know that confidence level (Low/Medium/High) affects match accuracy vs false positive rate. |
| Sensitivity Labels | Classify and optionally protect content. A label like “Confidential” can apply encryption, add visual markings (header, footer, watermark), and restrict sharing. | Labels can be applied manually by users or automatically by auto-labeling policies (client-side or service-side). Labels persist with the content — moving a file doesn’t remove the label. |
| Label Policies | Control which users see which sensitivity labels and define default labels. Can require users to apply a label before saving or sending. | Publish labels to specific users/groups via label policies. A label must be published before it appears for users. Mandatory labelling requires a label to be applied — users cannot save without one. |
| Auto-labeling policies | Automatically apply sensitivity labels to content in Exchange, SharePoint, and OneDrive based on SIT matches — without user intervention. | Service-side auto-labeling can scan all existing content in SharePoint at rest. Client-side auto-labeling shows a recommendation or applies automatically when a user opens a file. |
📅 Data Lifecycle Management — Retention
| Feature | Scope | Key Behaviour |
|---|---|---|
| Retention policy | Entire location — all Exchange mailboxes, all SharePoint sites, all OneDrive accounts, or Teams chats | Retains all content in the specified location for the configured period. Cannot be overridden by users — content is preserved even if deleted. Does not give individual items different retention periods. |
| Retention labels | Individual items — specific emails, documents, Teams messages | Applied manually or via auto-apply policies. Different items can have different retention periods. Supports record management — items labelled as records cannot be modified or deleted. |
| Copilot interaction history | Copilot prompts and responses stored in Exchange Online (hidden mailbox folder) | Can be retained and discovered via eDiscovery and retention policies targeting Exchange. AB-650 tests how to configure retention for Copilot interaction history. |
📊 Purview DSPM for AI NEW IN AB-650
Data Security Posture Management for AI (DSPM for AI) is a Microsoft Purview feature that provides visibility and control over how AI services interact with organisational data. It is the primary tool for monitoring Copilot and agent data interactions from a compliance perspective.
🔥 Purview DSPM for AI — What It Does
- Provides a dashboard of AI-related data risks: sensitive data referenced in Copilot prompts, sensitive data surfaced in Copilot responses, data accessed by agents
- Shows which sensitivity labels are most frequently accessed by Copilot users — helps identify over-privileged data access
- Integrates with Insider Risk Management to flag unusual AI data access patterns
- Generates DLP alert reports specifically for AI service interactions
- Located: Microsoft Purview compliance portal → Information protection → DSPM for AI
- Requires Microsoft Purview Information Protection licence (included in M365 E5 Compliance or as an add-on)
# Connect to Security & Compliance PowerShell Connect-IPPSSession -UserPrincipalName admin@contoso.com # List all DLP policies and their workload locations Get-DlpCompliancePolicy | Select-Object Name,Mode,@{N='Locations';E={$_.Workload}} | Format-Table -AutoSize # List all sensitivity labels in the tenant Get-Label | Select-Object DisplayName,Priority,IsActive,ContentType | Sort-Object Priority | Format-Table -AutoSize # List label policies (which labels are published to which users) Get-LabelPolicy | Select-Object Name,Labels,@{N='Users';E={$_.ExchangeLocation}} | Format-Table -AutoSize # Get DLP alerts summary for the last 30 days Get-DlpDetectionsReport -StartDate (Get-Date).AddDays(-30) | Group-Object PolicyName | Select-Object Name,Count | Sort-Object Count -Descending | Format-Table -AutoSize # Review retention policies Get-RetentionCompliancePolicy | Select-Object Name,Enabled,Mode | Format-Table -AutoSize
💡 Best Practices
- Start DLP policies in test/audit mode before switching to enforce mode — review DLP reports for 2–4 weeks to identify false positives before blocking content
- Use a small number of clearly-named sensitivity labels (4–6 labels max) — too many labels confuse users and reduce adoption. Start with Personal, General, Confidential, Highly Confidential.
- Enable auto-labeling for high-confidence SIT matches (e.g. High confidence credit card number) — this catches sensitive data that users forget to label manually
- Include Microsoft 365 Copilot as a DLP location in all policies that cover financial, health, or PII data — Copilot can surface this data in responses if not explicitly protected
- Review the Purview DSPM for AI dashboard monthly as part of the Copilot security review — look for unexpected sensitivity label categories being accessed frequently by Copilot users
- Configure retention for Copilot interaction history via Exchange retention policies — Copilot prompts and responses are stored in Exchange and subject to eDiscovery
🎓 Interview Q&A
A healthcare organisation wants to prevent Copilot from surfacing patient health record data (NHS numbers) in its responses. Which configuration achieves this?
A compliance officer wants all SharePoint documents containing credit card numbers to be automatically labelled “Confidential — Financial” without requiring users to apply labels manually. Which Purview feature achieves this?
Which Microsoft Purview feature provides a dashboard specifically showing which sensitivity label categories are most frequently accessed by Microsoft 365 Copilot, helping administrators identify AI-related data risks?
An administrator creates a new sensitivity label “Project-Alpha-Confidential” and applies it to a test document. Users report they cannot see the label in Microsoft Office apps to apply it to their own documents. What step was missed?
What is the correct way to ensure that Copilot interaction history (prompts and responses) is retained for 3 years for compliance purposes in a Microsoft 365 tenant?