Microsoft Power Automate - Connect to local AI models from desktop flows

🚨 The Signal: Power Automate desktop flows can now connect to local AI models, enabling on-premises AI processing. This keeps sensitive data within the organisation, reducing external data transfer risks and enhancing privacy controls for AI-driven automation.

The Impact

Security teams and Power Automate administrators are affected by new data handling capabilities, introducing both opportunities for enhanced privacy and new local attack surfaces.

• Security teams: Must assess risks of local AI model integration.
• Power Automate admins: Need to understand configuration and security implications.
• Data owners: Benefit from reduced external data exposure.
• Compliance officers: Can leverage local processing for data residency.

The Action

1. Review Power Automate DLP policies for desktop flows to ensure appropriate data handling.
2. Assess local AI model endpoints for security vulnerabilities and access controls.
3. Develop internal guidelines for connecting desktop flows to local AI models.
4. Monitor Power Automate desktop flow activity for suspicious connections to local endpoints.

Domain: Agentic-AI · Impact: medium · Workload: Other