Stop Copilot License Waste
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Microsoft bundles Copilot and AI agents into new E7 license tier
Microsoft introduces Microsoft 365 E7, combining E5 features with Entra Suite, Copilot, and Agent 365. Available May 2026 with 10-15% discounts for commitments. Bundling hides AI costs within security upgrades, reducing CFO pushback on standalone Copilot licenses and shifting focus to utilization.
Microsoft routes European Copilot data outside the EU to fix performance issues
Microsoft activates flex routing for European Copilot users on 17 April 2026, automatically sending prompts to servers in the US, Canada, or Australia during peak demand to avoid slowdowns. Data stays encrypted, but pseudonymised operational data leaves the EU. Default is on; admins must disable in Microsoft 365 Admin Center if strict residency is required.
Microsoft blocks sensitive Copilot prompts to stop accidental data leaks
Microsoft's Purview Data Loss Prevention now blocks sensitive prompts in Copilot chats, preventing accidental leaks of company data. IT admins gain Data Security Posture Management to fix overshared files and a dashboard for usage insights. These controls enable safe Copilot adoption without user fear of data exposure.
Hackers use AI to bypass Microsoft 365 security and access accounts
EvilToken phishing toolkit uses AI for personalized emails and dynamic device codes that bypass Microsoft 365 MFA. Grants attackers full inbox, files, and Graph access. Targets finance teams; exposes Copilot data foundation. Disabling device code flow in Entra ID prevents this.
Microsoft swaps Copilot default model to Anthropic and adds external app connectors
Microsoft 365 Copilot gains federated connectors to pull real-time data from Notion and Canva into prompts starting April 2. Anthropic models replace OpenAI as default from May 4, with session persistence and model selection rolling out to 2026. This breaks workflow silos but risks mixing unverified external data into company chats.
Microsoft links Copilot Studio to existing Azure data indexes
Microsoft updated Copilot Studio to connect custom agents directly to existing Azure AI Search indexes using an endpoint URL and admin key. This eliminates new data pipelines, allowing business users to generate answers from live enterprise data like HR policies or docs in minutes, bridging the gap between data teams and AI builders.
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