Microsoft 365 Copilot: Domain exclusion for web grounding

🚨 The Signal: Microsoft 365 Copilot now allows administrators to exclude specific web domains from its grounding process. This prevents Copilot from using untrusted or non-compliant external web content in its responses, enhancing data governance and reducing exposure to misinformation.

The Impact

Security teams and M365 administrators are affected, gaining a critical control to mitigate risks from untrusted web content in AI responses.

  • Security Teams: Can enforce data governance by blocking undesirable web sources.
  • M365 Administrators: Must configure exclusions to prevent Copilot from using unapproved external data.
  • Compliance Officers: Can ensure Copilot adheres to regulatory requirements by controlling information sources.

The Action

  1. Identify domains that should be excluded from Copilot's web grounding based on organizational policy or risk assessments.
  2. Access the Microsoft 365 admin center or use PowerShell cmdlets (available July 16, 2026) to configure domain exclusions.
  3. Add up to 1,000 specific domains to the exclusion list.
  4. Regularly review and update the excluded domain list to reflect evolving threats and policy changes.
  5. Communicate the policy on web grounding exclusions to relevant stakeholders.

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