Microsoft AI Stack Security & Governance

The Shared Responsibility Gap

Microsoft secures the platform. But who secures your deployment?

What Microsoft Handles

✓ Platform infrastructure and model security
✓ Default content filtering (medium severity)
✓ ISO 42001, SOC 2, ISO 27001 certifications
✓ Data encryption at rest and in transit
✓ Prompt Shields and content safety controls

What You're Responsible For

⚠ Bias testing and fairness assessments for your use cases
⚠ EU AI Act conformity assessments and registration
⚠ Risk management systems and impact assessments
⚠ Human oversight workflows and transparency notices
⚠ Data governance, access controls, and retention policies

Microsoft's ISO 42001 certification doesn't cover your deployment.

Their certifications protect the platform. Your organization is still responsible for governance, compliance, and security at the application and usage layers. That's where we come in.

How We Help

M365 Copilot Governance & Data Protection

M365 Copilot has access to everything your users can see in SharePoint, OneDrive, Teams, and Outlook. Without proper governance, Copilot amplifies existing oversharing problems. We help you lock it down before rollout and maintain controls as you scale.

What We Deliver:

Oversharing risk assessment and remediation
Sensitivity label strategy and deployment
DLP policy configuration for Copilot interactions
Copilot Control System configuration
Retention policy design for Copilot data

Key Compliance Areas:

Purview audit logging and monitoring
DSPM for AI data risk assessments
Communication Compliance policies
E3 vs E5 security control optimization
High-risk use case identification (EU AI Act Annex III)

Azure OpenAI Security & Compliance

Azure OpenAI provides platform-level safety, but building compliant AI applications requires configuring content filters, managing data residency, implementing audit logging, and addressing the regulatory gaps Microsoft leaves to deployers. We bridge those gaps systematically.

What We Deliver:

Content filter configuration and severity tuning
Data residency and deployment type strategy
Diagnostic logging and SIEM integration
Abuse monitoring configuration
Responsible AI Dashboard implementation

Regulatory Alignment:

EU AI Act deployer obligation mapping
NIST AI RMF alignment assessment
ISO 42001 readiness evaluation
HIPAA, FedRAMP, and SOC 2 alignment
Bias testing and fairness evaluation design

Agentic AI Security

AI agents are moving from experiments to production across the Microsoft stack: Azure AI Agent Service, M365 Copilot actions, Dynamics 365 autonomous agents, and GitHub Copilot coding agents. Each product handles agent security differently, with significant maturity gaps. We help you navigate the fragmented landscape and implement security controls before agents go live.

What We Deliver:

Agent identity and access management (Entra Agent ID)
Agent audit trail design and attribution controls
Human-in-the-loop workflow design
Tool-use permission models and sandboxing
Cross-stack agent governance strategy

Known Gaps We Address:

M365 Copilot: no agent vs. user action differentiation in audit logs
GitHub Copilot: content exclusion doesn't apply in agent mode
No unified agent security dashboard across Microsoft products
Copilot Studio: no tenant isolation for agents
Entra Agent ID: limited Conditional Access (preview)

AI Governance & Regulatory Readiness

AI regulation is accelerating. The EU AI Act is phasing in through 2027. Colorado SB 24-205 took effect February 2026. More state and federal regulations are coming. Microsoft provides compliance tooling through Purview Compliance Manager, but the governance strategy, risk assessments, and regulatory mapping are your responsibility.

What We Deliver:

AI governance framework design
Purview Compliance Manager template deployment
Fundamental rights impact assessments
Risk management system implementation
AI policy development and employee training

Regulatory Coverage:

EU AI Act (prohibited practices, high-risk systems, GPAI)
NIST AI Risk Management Framework
ISO/IEC 42001 readiness and gap analysis
State AI regulations (Colorado SB 24-205 and emerging laws)
Industry-specific compliance (HIPAA, PCI DSS, SOX)

The Three-Layer AI Security Model

Microsoft defines three layers of AI responsibility. Most organizations only address the first. We help you secure all three.

Layer 1: AI Platform

Microsoft's Responsibility

Infrastructure, model security, training data, API safety systems, and built-in content filtering. Microsoft handles this through Azure OpenAI and M365 Copilot platform controls.

Layer 2: AI Application

Your Responsibility — We Help Here

Application-layer safety, grounding controls, plugin security, data connectors, prompt security, and content inspection. This is where most compliance gaps exist.

Layer 3: AI Usage

Your Responsibility — We Help Here

Identity and access controls, acceptable use policies, user education, data governance, and monitoring how your teams interact with AI systems.

Frameworks We Apply

NIST AI RMF

Govern, Map, Measure, Manage — the four-function framework for AI risk management

ISO/IEC 42001

AI Management Systems standard for responsible development, deployment, and operation

EU AI Act

Compliance mapping for prohibited practices, high-risk systems, and GPAI obligations

CIS Benchmarks

Infrastructure hardening standards applied to Microsoft 365 and Azure environments

Ready to Secure Your Microsoft AI Deployment?

Whether you're rolling out M365 Copilot, building on Azure OpenAI, or deploying AI agents across your organization — we help you do it securely, compliantly, and with confidence.

No magic. Just proven frameworks applied systematically to Microsoft AI deployments.

Microsoft AI Security Inquiry