Data Governance in the Age of Generative AI: Key Insights from the Microsoft 365 Community Conference

Last week’s Microsoft 365 Community Conference delivered a wave of exciting announcements—many centered around Microsoft Copilot and its growing role in workplace productivity. But beyond the AI buzz, one theme stood out for its long-term strategic importance: data governance.

As organizations race to adopt generative AI solutions, the ability to govern content securely and compliantly becomes essential—especially for those in regulated industries. At this year’s conference, Microsoft doubled down on governance innovations across SharePoint, OneDrive, and Teams, laying the groundwork for secure, responsible AI adoption.

Here’s a closer look at the most impactful updates and what they mean for your compliance posture in the age of Copilot.

Microsoft Copilot Governance Is Critical for Compliance

With Copilot and other generative AI tools increasingly woven into the Microsoft 365 fabric, the importance of well-structured, lifecycle-aware content governance cannot be overstated. Organizations are facing tough questions:

• Is our content ready for AI?
• Can we ensure sensitive data isn’t surfaced inappropriately?
• Are we meeting compliance requirements while enabling innovation?

Microsoft’s latest announcements directly address these challenges, offering powerful tools to assess, control, and manage information across the M365 ecosystem.

New SharePoint Permission Management Tools for Secure AI Deployment

To prepare for safe and effective Copilot deployment, Microsoft introduced a range of new permission and policy features:

• Permission State Report (Private Preview)
  Generate reports on user or group permissions to identify overly permissive access and prevent data exposure.
• Restricted Content Discovery (RCD) (Generally Available)
  Discover and manage restricted content across sites to improve information protection.
• Restricted Access Control (RAC) Policy (Generally Available)
  Apply access restrictions using Microsoft Entra and Microsoft 365 security groups.

Automating Site Lifecycle Management in SharePoint

Keeping Copilot responses fresh and relevant requires effective site lifecycle management. New policies support this goal:

• Inactive Sites Policy v2 (Generally Available)
  Automate lifecycle actions for unused sites.
• Site Ownership Policy (Generally Available)
  Ensure each site has clear, accountable ownership.
• Site Attestation Policy (Private Preview)
  Require owners to periodically validate site accuracy and relevance.

Agent Insights & Governance Enhancements for SharePoint Admins

Governance isn’t just about setting policies—it’s also about having the visibility to enforce them. To support this, Microsoft is rolling out tools to help:

• Agent Insights v1 (Generally Available)
  Get detailed views into agent behaviors and governance trends at the site level.
• Enterprise Application Insights (Public Preview)
  Monitor third-party app usage within SharePoint environments.
• Restrict App Provisioning (Private Preview)
  Control which applications can be provisioned by users.

Organization Lifecycle & Business Solutions

A wave of new features enhances organizational agility and compliance:

• Agreements Solution (Limited General Availability)
  Manage contracts and agreements directly within SharePoint.
• SharePoint eSignature for Microsoft Word (Generally Available)
  Seamless eSignature integration for Word documents stored in SharePoint.
• Cross-Tenant Sites Content Migration (Generally Available)
  Enable secure, controlled content migration between SharePoint tenants.

The Bottom Line: Prepare Your Governance Strategy for Microsoft Copilot

Microsoft’s latest governance enhancements are more than just checkboxes—they’re critical enablers for Copilot readiness and responsible AI adoption. Whether you’re a compliance officer, IT admin, or business leader, now is the time to align your governance strategy with the rapidly evolving AI capabilities of Microsoft 365.