Microsoft Copilot (Microsoft 365): Federated Copilot Connectors in Microsoft 365 Copilot

🚨 The Signal: Copilot can now connect to third-party data sources in real-time using federated connectors. This expands Copilot's data access, increasing the risk of data exposure if not properly governed, as it uses the user's identity for access.

The Impact

All Copilot users are affected, with a high risk of unintended data exposure from third-party sources if governance is not applied.

• Security teams face increased risk of data exfiltration through new third-party integrations.
• Administrators must configure and monitor new connectors to prevent unauthorized data access.
• End-users might inadvertently expose sensitive data by querying third-party sources via Copilot.
• Compliance officers need to reassess data handling policies for third-party data accessed by Copilot.

The Action

1. Review and approve specific federated Copilot connectors in Microsoft 365 Admin Center.
2. Implement data loss prevention (DLP) policies for data accessed via Copilot connectors.
3. Monitor Copilot activity logs for unusual data access patterns involving third-party sources.
4. Educate users on responsible use of Copilot with third-party data and potential data exposure risks.
5. Regularly audit connector configurations and access permissions.

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