Microsoft Purview DLP policies will block Microsoft 365 Copilot from processing sensitivity-labeled Word, Excel, and PowerPoint files across all storage locations, including local devices. This rollout begins mid-April 2026 and requires no policy changes, ensuring consistent DLP enforcement without altering Copilot capabilities.
Applies to: Microsoft 365 suite · Microsoft 365 apps · Microsoft Purview
Source: mc.merill.net — data via Merill Fernando's open archive (MIT).