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How a Governed Tenant Stops Silent Exfiltration

Ungoverned AI use is not a technology problem. It is a boundary problem. Client data lives inside your Microsoft 365 tenant; the tools your staff reach for live outside it.

A governed deployment draws that boundary in policy, enforces it on every request, in both directions, and keeps a record of each decision.

THE OPEN INTERNET unbounded, unlogged, outside your control YOUR MICROSOFT 365 TENANT contained, governed, evidenced Public AI chatbot FREE TIER Personal webmail OUTSIDE TENANT File-sharing site UNSANCTIONED Unmanaged laptop NO MDM Out here, none of this exists. NO BOUNDARY · NO BLOCK · NO RECORD BOUNDARY TENANT Sensitivity labels DLP policy Conditional access Staff workstation MANAGED · MDM Microsoft Copilot IN-TENANT AI SharePoint / OneDrive CLIENT FILES Exchange Online MAIL ALLOWED used · logged · reviewed BLOCKED AT THE BOUNDARY paste containing client identifiers, bound for a free tool the request never crosses; the user sees the policy notice THE RECORD 09:14  workstation → copilot       PROMPT CAPTURED · OUTPUT LOGGED · SOURCES CITED 09:17  workstation → external paste  BLOCKED · USER, TIME, AND POLICY RECORDED Every prompt in, every answer out, every failed attempt to leave. Exports when an insurer or examiner asks.

The block is the visible part. The record is the part that matters at renewal.

When an auditor asks how AI use is governed, the answer is a report, not a promise.