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Template: Per-Agent Data Handling Policy (PDHP)

Purpose: Define, per agent, what data it can access, how it can use it, and what protections apply (labels, DLP, retention, eDiscovery posture).
Applies to: All zones (Zone 1–3), with the strictest requirements in Zone 3.
Microsoft grounding: Microsoft Purview provides data security/compliance controls for Copilot and agents, including sensitivity labels, DLP, auditing, eDiscovery, and retention for AI interactions. [9]
Audit grounding: Purview audit logs for Copilot/AI interactions include references to accessed resources and their sensitivity labels (SensitivityLabelId) and policy block details (PolicyDetails). [10]
Related controls (examples): 1.5 DLP & sensitivity labels, 1.6 Purview DSPM for AI, 1.9 retention, 4.1 SharePoint IAG, 3.3 compliance reporting. [3]


1) Policy metadata

  • Agent name:
  • Agent ID:
  • Agent version:
  • Zone: Zone 1 / Zone 2 / Zone 3
  • Governance level: Baseline / Recommended / Regulated
  • Business owner:
  • Technical owner:
  • Data owner(s):
  • Compliance approver:
  • Effective date:
  • Next review date: (recommended: quarterly for Zone 3)

2) Data classification model used

Sensitivity labels in scope

List your org’s labels (example only): - Public - Internal - Confidential - Restricted / Highly Confidential - Regulated (GLBA/PII), etc.

Microsoft Purview integrates with sensitivity labels and enforces access controls such that AI apps won’t return data a user doesn’t have access to, with additional protections when encryption/labels are used. [9]

Sensitive information types (SITs) / classifiers in scope

  • (e.g., SSN, account numbers, credit card, taxpayer ID, etc.)

3) Allowed data sources (positive allowlist)

Only list the sources the agent may use.

Source type Source location / scope Allowed labels Allowed operations Notes
SharePoint https://tenant.sharepoint.com/sites/... Internal, Confidential Read Restricted excluded
OneDrive By user scope Internal only Read No cross-user access
Dataverse Environment: Prod Internal Create draft No delete
Exchange/Outlook Mailbox items Internal Summarize No external send

4) Prohibited data sources (deny list)

Source type Scope Reason Enforcement
SharePoint HR site collection Privacy Restricted discovery + deny
External web Any Data leakage risk Disable web search/plugin
Personal storage Any Unmanaged Block via policy

5) Label handling rules (what the agent may do with labeled content)

Purview audit logs can include AccessedResources with SensitivityLabelId and PolicyDetails when access is restricted/blocked, which supports evidencing policy enforcement. [10]

5.1 Read rules (retrieval)

Label Agent may retrieve? Conditions
Public Yes
Internal Yes
Confidential Yes Only Zone 2/3; log sources
Restricted No (default) Only with explicit exception + approval

5.2 Write rules (generation/storage)

Label Agent may create content at this label? Conditions
Internal Yes Auto-apply label where possible
Confidential Yes (Zone 3 only) Must log decision + sources
Restricted No Human-only

5.3 Redaction / masking rules

  • List what must be masked in outputs (e.g., SSN, full account numbers).
  • Specify whether partial display is allowed (last 4 digits only).

6) DLP policy requirements

Microsoft Purview DLP can monitor and help protect against leakage of sensitive information, and can also apply to AI interactions depending on configuration and supported apps. [9]

  • DLP policies required for this agent: (names/IDs)
  • Block vs warn vs allow-override: (per DLP rule)
  • Override policy: who can override, what must be logged, and duration.

7) AI interaction logging requirements

Microsoft Purview auditing captures user interactions with Copilot/AI apps and includes references to resources Copilot accessed, including sensitivity labels. [10]

Minimum logging (all zones)

  • agent_id / agent_version
  • interaction timestamp
  • user identifier (pseudonymous where possible)
  • accessed resource references (IDs/URLs) where available
  • decision log record ID (if applicable)

Zone 3 additional logging

  • decision reasoning logs (schema)
  • confidence band and routing
  • scope drift events and alerts
  • policy blocks (PolicyDetails) references

8) Retention, eDiscovery, and records posture

Microsoft Purview supports auditing, eDiscovery, and retention for AI interactions, including prompts/responses stored and searchable for compliance and investigations. [9]

  • Decision log retention period: (e.g., 7 years / per SEC 17a-4-like policy if applicable)
  • AI interaction retention period: (per org policy)
  • eDiscovery hold process: (who can place holds, escalation trigger)
  • Record declaration rules: (if applicable)

9) Data residency and US-only scope statement

  • Deployment region(s): (US-only)
  • Cross-border restrictions: (state “not permitted” unless explicitly approved)
  • Third-party processing: list if any (LLM endpoints, vendors) and tie to supply chain register.

10) Risk review checklist (required before production)

  • Allowed data sources are explicitly enumerated (no wildcards).
  • Prohibited sources are explicitly blocked (technical + policy).
  • Label rules defined for read/write.
  • DLP rules verified with test events.
  • Logging is enabled and verifiable via audit search.
  • Retention and eDiscovery posture defined and tested.

11) Approvals and versioning

  • Policy version:
  • Approved by (Data owner):
  • Approved by (Compliance/Risk):
  • Approved by (Platform owner):
  • Approval date:
  • Change record (ticket/PR):