Microsoft Ignite 2025: What Actually Matters for Data Security

Microsoft Ignite 2025 brought major announcements focused on one very clear message: we're done with AI assistants. It's all about autonomous agents now.

This overview covers the key announcements for data security, compliance, and Microsoft's plans for agent management.

The Headline: Agent 365

The big announcement was Microsoft Agent 365—basically, a management system for AI agents. Not a feature add-on, a whole new way of thinking about work.

So What Even Is Agent 365?

Agent 365 takes the infrastructure Microsoft built for managing people and extends it to manage agents. And these aren't chatbots—they're autonomous things that:

Work independently across multiple systems
Make their own decisions based on your data
Collaborate with humans and other agents
Handle complex, multi-step tasks
Work 24/7 (no coffee breaks)

What Agent 365 Does:
Registry - See all your agents in one place:
Official agents with proper IDs
Self-registered ones
Shadow agents (the ones nobody told IT about)
Access Control - Manage what agents can do:
Least-privilege access (only what they need)
Risk-based policies
Works with Microsoft Entra
Visualization - Watch what's happening:
Who agents talk to
What data they access
Whether they're actually useful
Interoperability - Make agents work together:
Connect to Work IQ for context
Integrate with M365 apps
Let humans and agents collaborate
Security - Keep things safe:
Defender watches for threats
Purview governs data access
Stops data leaks
Catches compromised agents

How It All Connects

Agent 365 works across Microsoft's stack:

Microsoft Defender - Protects agents
Microsoft Entra - Gives agents identities
Microsoft Purview - Controls data access
Microsoft 365 - Embeds agents everywhere
Work IQ - Provides context

Status: Preview via Frontier program (Microsoft's early access thing)

Microsoft 365 & Copilot: Agents Are Everywhere Now

Microsoft 365 Copilot keeps evolving. Ignite brought some big updates:

New Agents You Can Actually Use

Sales Development Agent (Frontier Preview) An autonomous sales agent that researches leads, qualifies them, engages with prospects, works after hours, and hands off to humans when needed. Built on Agent 365's security framework.

Workforce, People, and Learning Agents (Frontier) Real-time organizational insights, colleague finder with connection suggestions, and personalized learning. Basically makes it easier to find people and learn stuff.

Teams Admin Agent (Preview) Automates the boring admin tasks\u2014meeting monitoring, user provisioning, compliance stuff. Reduces admin burden.

SharePoint Admin Agent (Preview) Watches for inactive sites, finds overshared content, automates governance. Especially useful for tracking sites with lots of AI activity.

Agent Mode in Office Apps

PowerPoint Agent Mode (Frontier) Chat with Copilot to create presentations. It pulls from your work data and the web, uses branded templates, lets you iterate. Pretty neat.

Excel Agent Mode (Frontier - Now on Web and Desktop) Web search integration, choice between Claude and OpenAI models, flexible output. Excel just got a lot smarter.

Word Agent Mode (Generally Available) Work IQ integration for automatic source selection. Creates contextually accurate documents with current info. Available on web, Windows, and Mac.

Copilot Chat Gets Better

Create Pages from Chat (Generally Available) Turn conversations into interactive Copilot Pages. Can contain code, collaborative editing, convert to PowerPoint. Handy for team work.

Sora 2 Video Generation (Frontier) Generate AI video clips from text. Replace stock footage with AI-generated content. Built-in voiceover, music, brand kits.

Voice in Copilot (Generally Available for Commercial) Natural voice interactions. Interrupt mid-sentence, switch between voice and text. "Hey, Copilot" activation works in Word, Excel, PowerPoint, Outlook.

Microsoft 365 Copilot Business (New for SMBs)

For companies under 300 users:

Reported pricing: $21/user/month
Automates emails, docs, data analysis, meeting notes
Add agents for tasks and processes
Planned availability: December 2025

Security: Actually Important Stuff

Security was huge at Ignite 2025. Makes sense when you've got autonomous agents running around your environment.

Microsoft Purview for Agents

Major Purview Announcements:
DLP for Agent Prompts (Preview) Real-time blocking of sensitive data in prompts. Stops agents from processing credit cards, SSNs, confidential stuff. Protects at the prompt level before the agent even sees it.
Insider Risk Management for Agents (Preview) New "Risky Agents" policy template. Detects prompt injection attempts, monitors agents accessing sensitive files, identifies unusual behavior.
AI Observability in DSPM (Preview) Complete inventory of all agents, risk scoring, guided fixes for misconfigurations. Works with Security Copilot.
Extended Governance Communication Compliance for agent chats, Data Lifecycle Management for agent-created content, audit trails for everything, eDiscovery support.

Detailed deep-dive on these Purview features available in the series posts.

Microsoft Defender Updates

Unified Posture Management for AI Agents (Preview) See everything across pro-code, low-code, no-code platforms. Reduces shadow agents. Proactive vulnerability detection with contextualized alerts.

Predictive Shielding (Preview) Anticipates how attackers might move through your environment. Hardens pathways to critical assets just-in-time. Reduces attack paths from thousands to a handful.

Third-Party Attack Disruption Now works with AWS, Proofpoint, Okta. Real-time threat detection across federated accounts and cloud boundaries.

Threat-Hunting Agent Natural language threat hunting. Orchestrates full hunting sessions with KQL queries and visualizations. Makes advanced hunting accessible to everyone.

Microsoft Entra: Identity for Agents

Microsoft Entra Agent ID (Preview) Enterprise-grade identity for AI agents. Complete lifecycle management, conditional access policies, prevents agent sprawl.

New Security Copilot Agents in Entra (Preview): Conditional Access Optimization, Identity Risk Management, App Lifecycle Management, Access Review agents.

Better Authentication: Support for synced passkeys from Apple, Google, third-party providers. Enhanced risk detection and self-service recovery with Verified ID Face Check.

Security Copilot Gets Bigger

Now Bundled in Microsoft 365 E5: Rolling out to all E5 tenants. Reported allocation: 400 Security Compute Units per month per 1,000 licenses (up to 10,000 SCUs/month). Additional SCUs reported at $6 each.

12 New Agents Across Security Products: Embedded in Defender, Entra, Intune, Purview. Automate alert triage, threat intelligence, natural-language threat hunting, identity risk management.

Azure & Infrastructure

Microsoft Foundry

Model Router (Generally Available)

Automatically selects best model for each task
Reported performance: Up to 40% faster responses, 50% lower costs
Access to 12 models including GPT-5, Grok 4, DeepSeek-v3.1

Foundry Agent Service (Preview)

Hosted agents with Microsoft Agent Framework, LangGraph, CrewAI support
Built-in memory for context retention
Multi-agent workflows
Integration with Agent 365

Foundry IQ (Preview)

Next-generation RAG (retrieval-augmented generation)
Single knowledge base across multiple data sources
Agentic retrieval with query planning and synthesis
Microsoft Purview integration for governance

Foundry Control Plane (Preview)

Fleetwide agent visibility and control
Real-time monitoring, evaluations, red teaming
Cost and usage management via AI Gateway
Defender and Purview integration

Azure Copilot (Private Preview)

GPT-5 Powered with Specialized Agents:

Deployment agent for infrastructure planning
Migration agent for cloud transformation
Optimization agent for cost savings
Observability agent for diagnostics
Resiliency agent for business continuity
Troubleshooting agent for issue resolution

Database & Analytics

Microsoft SQL Server 2025 (Generally Available)

Built-in AI and developer-first enhancements
Near real-time analytics with Fabric mirroring
GitHub Copilot integration in VS Code and SSMS

Azure HorizonDB (Private Preview)

New PostgreSQL cloud database
Reported performance: 3x faster than open-source PostgreSQL
Scale-out to 15 replicas with 192 vCores each
Auto-scaling storage up to 128 TB

Microsoft Fabric Databases (Generally Available)

Unified SQL database and Cosmos DB experience
Instant provisioning, autonomous architecture
Native AI integration with vector support

Azure Boost Enhancements (Preview)

Reported capabilities:

Remote storage throughput up to 20 Gbps
Up to 1 million remote storage IOPS
Network bandwidth up to 400 Gbps
Hardware-based security isolation

Azure Cobalt 200 (Preview)

Reported specifications:

Next-gen Arm CPU for cloud-native apps
Up to 50% higher performance than Cobalt 100
3nm TSMC process technology
Most power-efficient compute platform in Azure

Windows: The Canvas for AI

Windows is evolving from an operating system into the execution fabric for AI and agents.

Native Agent Infrastructure (Preview)

Model Context Protocol (MCP) on Windows:

Standardized framework for agents to connect with apps
Agent connectors for local system access
System Settings connector for device configuration

Agent Workspace (Private Preview):

Isolated, policy-controlled environment for agents
Agents can interact with software like humans do
Run in parallel without disrupting user sessions
Auditable and compliant

Windows 365 for Agents (Preview):

Cloud-based execution for agents
Scale AI workloads without compromising compliance
Foundation for Copilot Studio computer use

Windows AI APIs (Preview)

For Copilot+ PCs:

Video Super Resolution (VSR) API
Stable Diffusion XL (SDXL) for image generation
Phi Silica (Generally Available) - reported up to 40% performance boost

Security & Recovery

Post Quantum Cryptography (Generally Available):

Protection against quantum computing attacks
NIST-compliant algorithms
Reduces "harvest now, decrypt later" threats

Hardware-Accelerated BitLocker (Generally Available):

Offloads encryption to dedicated crypto engines
Hardware-protected keys
Improved performance and security

Windows Recovery Enhancements (Preview H1 2026):

Point-in-time restore (PITR)
Cloud rebuild capabilities
Remote Windows Recovery Environment management via Intune

Windows 365 Updates

Windows 365 Reserve (Generally Available):

Temporary Cloud PC solution
Pre-installed with organizational apps
Ideal for device failures, ransomware, short-term access

Windows 365 Cloud Apps (Generally Available):

Stream specific apps without full Cloud PC
Reduces overhead and modernizes VDI

Power Platform & Copilot Studio

Power Apps Updates

New Maker Workspace (Preview):

AI-powered canvas combining planning, data modeling, app building
Generate business-ready apps by chatting with Copilot
Real-time visualization and modification

Power Apps MCP Server (Preview):

Connects AI agents to Power Apps logic and data
Standardized communication between agents and services
Agents can submit approvals, retrieve records, request input

Unified Copilot Chat (Preview March 2026):

Context-aware across productivity and business apps
Reduces context switching
Carries conversation from Teams/Outlook into Power Apps

Copilot Studio Enhancements

Agent Evaluations (Preview):

Automated testing against predefined scenarios
Objective performance metrics
Compare agent versions side by side

Computer Use (Preview):

Agents can automate tasks across any app or website
Powered by Windows 365 for Agents
Secure browser access and Cloud PC pools

Real-Time Monitoring (Generally Available):

Integrate security solutions during agent runs
Run Microsoft Defender or third-party platforms
Protect against prompt injection attacks

Microsoft Entra Agent ID Integration:

All Copilot Studio agents get Entra Agent ID
Complete inventory and lifecycle governance
Enterprise identity and access controls

Edge for Business: The Secure AI Browser

Edge is transforming into the world's first secure enterprise AI browser.

Copilot Mode (Private Preview)

Agent Mode:

Browser takes actions on user's behalf
Multistep workflows on IT-approved websites
Visual cues for transparency
User control at critical junctions

Copilot-Inspired New Tab:

Combines search and chat
Easy access to files and personalized prompts
Requires Microsoft 365 Copilot license

Daily Briefing:

Curated highlights from meetings, tasks, priorities
Uses Microsoft Graph and browser history

Additional Features (Private Preview):

Multitab reasoning across organizational and web content
Intelligent browser history (3 months, natural language search)
YouTube video summarization

Enhanced Security (Preview)

Watermarking and Clipboard Controls (Preview):

Visual watermark overlay on sensitive content
Protected clipboard with trusted boundaries
Prevents data leaks while maintaining productivity

Improved Management (Preview):

Cross-platform security policies (macOS, iOS, Android)
Enterprise preview for Beta builds within Stable app
Simplified testing and validation

Dynamics 365: Agentic ERP

Dynamic MCP Server (Preview):

Evolves from static to dynamic, configurable framework
Agents can connect to live business logic
Faster automation of finance and supply chain processes

Analytics MCP Server (Preview):

Governed access to ERP analytics data
Agents can generate insights directly in apps
Continuous planning and responsive forecasting

What This Means for Different People

Key Takeaways by Role:

Security Folks

Agents are your new attack surface - Secure them like users
Agent 365 is necessary - Get visibility now
Purview extensions matter - DLP, IRM, DSPM for agents
Security Copilot is becoming essential - AI threats need AI defense

IT Leaders

Plan for agent governance - Who can create them? When?
Budget accordingly - E5, Security Copilot, Purview add-ons
Train your teams - This is new territory
Join Frontier program - Get early access

Developers

Build security in from day one - Use Purview SDK, Agent Framework
Standardize with MCP - How agents connect to systems
Use Microsoft Foundry - Managed platform for agents
Design for Entra Agent ID - Identity from the start

Compliance Teams

Extend policies to agents - DLP, retention, audit
Document agent use cases - Keep complete inventory
Prepare for eDiscovery - Agents create discoverable content
Watch EU AI Act - New requirements coming

Business Leaders

Agent ROI is being reported - Some early adopters report positive returns
Competitive landscape - Organizations are exploring agent adoption
Security enables speed - Good governance accelerates adoption
Think ecosystem - Agents work best when integrated

What's Next?

Ignite 2025 represents a fundamental shift in how work happens. The move from AI assistants to autonomous agents is a significant change in enterprise computing.

This overview is part of a series exploring:

Complete guide to Microsoft Purview for agents
Implementing DLP for agent prompts
Insider Risk Management for agents
Agent observability and DSPM

Key Implementation Considerations

Important Notes:
Agent 365's unified approach - Consistent management across the platform
Purview's comprehensive coverage - DLP, IRM, DSPM working together
Compliance support - EU AI Act templates included

Implementation requires planning, cross-team coordination, and organizational change management.

More Resources

Official Stuff:

Session Recordings: Session Recordings:

Detailed deep-dives on Purview and agent security available in the series posts.