Microsoft Purview vs Agent 365: Understanding Agentic AI Governance

Microsoft has introduced Microsoft Agent 365 as its unified control plane for managing AI agents across enterprise environments, working in tandem with Microsoft Purview to deliver comprehensive data security and compliance protections. Introducing Agent 365 represents Microsoft’s strategic response to governing generative AI at scale—Agent 365 provides AI agent management capabilities, including identity, lifecycle management, and access control, while Microsoft Purview governs data protection, compliance, and preventing data exposure across AI interactions. Together, these platforms address Gartner’s warning that default Microsoft 365 settings allowing all employees to create agents “can lead to agent sprawl and increased risks.”

Agent 365 is designed as Microsoft’s control plane for agents

Microsoft Agent 365 was unveiled at Microsoft Ignite 2025 (November 18, 2025) as Microsoft’s official, first-party enterprise platform for managing AI agents—not a third-party solution. Microsoft describes Agent 365 as “the control plane for AI agents,” built to govern the projected 1.3 billion AI agents IDC forecasts by 2028. The platform is currently rolling out in preview through Microsoft’s “Frontier” early access program and operates within the Microsoft 365 Admin Center.

The foundational distinction Microsoft’s architects emphasize is critical: “Microsoft 365 is designed for your users, and Agent 365 is designed for your agents.” Microsoft Agent 365 is not part of the core Microsoft 365 license—it’s a separate governance platform that integrates deeply with Microsoft Entra, Microsoft Defender, and Microsoft Purview to provide end-to-end agent management and visibility.

Agent 365 provides governance through five foundational pillars that unify AI agent management:

1. Registry: Centralized inventory tracking all AI agents, including “shadow agents” (unsanctioned or unauthorized), with the ability to quarantine risky agent instances

2. Access Control: Unique Agent ID credentials, blueprint-based creation policies enforcing least-privilege access, and integration with Microsoft 365 Groups for workflow permissions

3. Visibility: Unified dashboard mapping agent interactions between agents, users, and data sources with AI observability metrics in a Graph

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5. Security and Compliance: Integration with Microsoft Defender for threat protection and use Microsoft Purview for data security posture management

Use Microsoft Purview for data security and compliance protections across AI interactions

Microsoft Purview provides the data governance layer for AI applications through Data Security Posture Management for AI (DSPM for AI), which reached general availability at Ignite 2024. This enhanced version of data security posture management serves as the central command center for AI governance, providing visibility into sensitive data usage in AI interactions—both in user prompts and AI responses.

Microsoft Purview’s AI governance capabilities span three domains critical to protecting sensitive data. For information protection, sensitivity labels applied to documents stored in Microsoft 365 are respected by AI applications—Microsoft 365 Copilot displays the highest-priority sensitivity label from referenced data, and DLP policies can exclude labeled documents from AI processing entirely to prevent data leakage. For compliance monitoring, the platform detects regulatory violations, prompt injection attempts, and unethical AI usage using trainable classifiers and sensitive information types. For audit and eDiscovery, detailed logging through Microsoft Purview Audit captures all AI interactions, enabling legal holds and compliance investigations via Purview eDiscovery.

The Microsoft Purview Portal supports governance for AI agents across multiple environments: Microsoft 365 Copilot agents, Security Copilot agents, Copilot Studio agents, Microsoft Foundry agents, and third-party Entra-registered AI platforms. Each agent category inherits appropriate security and compliance controls for ai. The Agent Observability Page (currently in preview) provides visibility into active agent instances and potential data exposure risks.

Use the Microsoft Purview compliance manager to access AI regulation templates for the EU AI Act, NIST AI Risk Management Framework, ISO 42001, ISO 23894, and DORA—enabling organizations to translate regulatory requirements into technical controls for AI protecting part of your data estate.

How Agent 365 and Microsoft Purview work together to unify AI governance

Agent 365 and Microsoft Purview are complementary platforms with distinct but integrated responsibilities for managing AI agents. The architectural division follows a clear principle: Agent 365 provides governance for the agent itself, while Microsoft Purview’s capabilities govern what the agent can do with sensitive data.

The integration works through the Agent 365 SDK integration, built on OpenTelemetry standards. This captures detailed telemetry—AI usage events, tool usage, notifications—and routes it to both Microsoft Purview (for compliance protections for Microsoft agent operations) and Microsoft Defender (for security posture management for AI). When Microsoft Purview data security capabilities detect sensitive data flowing through an AI agent, the visibility surfaces in the Agent 365 dashboard alongside agent-specific metrics, creating unified AI observability.

For IT administrators managing ai agents, this means configuring agent policies in the Microsoft 365 Admin Center (via Agent 365) while setting data protection rules in the Microsoft Purview Portal. The platforms share signals but maintain separation of concerns—Agent 365 focuses on agent management, Microsoft Purview focuses on data classification and preventing data leakage.

Frequently Asked Questions (FAQ)

What is the difference between Microsoft Purview and Agent 365?

Agent 365 is designed to govern AI agent identity, creation permissions, and lifecycle management, while Microsoft Purview governs data protection, compliance, and sensitive information types across AI interactions. Agent 365 manages the agent itself; Microsoft Purview protects the data the agent accesses.

Do I need both Agent 365 and Microsoft Purview for AI Governance?

Yes. Agent 365 provides the control plane for agents including Agent ID management and access control. Microsoft Purview delivers data security and compliance protections including DLP policies, sensitivity labels, insider risk management, and audit capabilities. Both platforms work together through SDK integration to unify AI governance.

How do I find sensitive data being used by AI agents?

Use the Microsoft Purview Portal to access DSPM for AI (Data Security Posture Management for AI), which provides visibility into sensitive data in user prompts and AI responses. The Agent Observability Page shows which agent interactions involve sensitive information types, enabling you to configure appropriate DLP policies and preventing data exposure.

Is Agent 365 part of my Microsoft 365 license?

No. Microsoft Agent 365 is a separate governance platform currently rolling out in preview through the Frontier early access program. It integrates with Microsoft 365, Microsoft Entra, Microsoft Defender, and Microsoft Purview but requires separate licensing. Contact your Microsoft representative for licensing details.

How does Agent 365 prevent agent sprawl?

Agent 365 provides centralized registry, lifecycle management tied to sponsor accountability, blueprint-based creation policies, and periodic attestation requirements. When employees leave, their sponsored agents can be automatically flagged or deleted through workflow automation, preventing orphaned AI agents from accumulating privilege across Microsoft 365.

Conclusion: Unifying AI governance with Agent 365 and Microsoft Purview

Microsoft’s AI governance architecture now spans three integrated layers at Microsoft Ignite 2025: Agent 365 for AI agent management, including identity and lifecycle management, Microsoft Purview for data security and compliance protections, including DLP and insider risk management, and Microsoft Defender for security posture management for AI and threat detection. This represents Microsoft’s strategic response to enterprise needs for managing AI agents at scale.

For IT pros, admins, and governance professionals managing AI across Microsoft 365, the key insight is that protections for Microsoft Agent 365 and Microsoft Purview’s capabilities are not competitors—they address different governance domains that must work together. Agent 365 provides the control plane for agents, while Microsoft Purview delivers the data governance layer, creating unified visibility and controls for AI usage.

Organizations should begin with existing Copilot Control System capabilities while preparing for Agent 365 rollout through the preview program. Immediate priorities include implementing sensitivity labels on data stored in SharePoint and Microsoft Teams, configuring DLP policies for AI applications to prevent data leakage, establishing agent creation policies using Microsoft 365 Groups, and enabling Microsoft Purview Audit for all AI interactions to support compliance protections for Microsoft agent operations.

The governance landscape for generative AI will continue evolving. Agent 365 is currently in preview with features that may change before general availability. Organizations must balance enabling innovation in agentic AI with appropriate guardrails protecting sensitive data. By understanding how Agent 365 and Microsoft Purview work together, IT leaders can confidently use AI while maintaining security and compliance across their data sources.

Ready to implement proper AI agent governance? Contact me, Ragnar Heil, for a consultation on Microsoft Purview and Agent 365 deployment strategies tailored to your organization’s needs. Find my calendar here at our HanseVision Governance Landing Page. If you want to talk about Atlassian Support, Managed Services or Agents with Jira and Confluence Integration, check out our Atlassian Page.

The post Microsoft Purview vs Agent 365: Understanding Agentic AI Governance first appeared on Ragnar Heil (MVP): Empowering M365 with AI.

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