AI Governance Library

Administering and Governing Agents

This whitepaper provides a comprehensive overview of strategies and tools for securing and governing agents within Microsoft 365, focusing on data access control, compliance, and scalable agent management across organizations.
Administering and Governing Agents

⚡ Quick Summary

Microsoft’s Administering and Governing Agents is a practical, operations-focused whitepaper that explains how organizations can safely deploy, manage, and scale AI agents across the Microsoft 365 ecosystem. It breaks agent governance down into concrete layers: who builds agents (end users, makers, developers), which tools they use, and what controls are available at each level. Rather than abstract AI ethics or policy talk, the document stays firmly grounded in admin realities: permissions, content controls, usage monitoring, cost management, and compliance tooling. A major strength is how it connects Copilot, Copilot Studio, SharePoint, Power Platform, and Microsoft Purview into a single, coherent governance model. The result is a clear blueprint for enabling innovation without losing control over data, spend, or regulatory exposure—especially relevant for enterprises preparing for stricter AI governance expectations.

🧩 What’s Covered

The document starts by defining the scope: governance of agents built with SharePoint, Agent Builder, Copilot Studio, and pro-developer tools such as Teams Toolkit and Azure AI Foundry. It introduces three distinct creator profiles—End Users, Makers, and Developers—and explains how governance intensity should scale with agent capability. A central concept is the “spectrum of agents and controls,” combining tool controls, content controls, and agent management, visualized in diagrams early in the paper (pages 4–6).

A large portion of the whitepaper details governance mechanisms inside Microsoft 365 Admin Center, including Copilot Control System features, Integrated Apps inventory, agent approval and blocking, publisher attestation, and Microsoft 365 certification. It explains how SharePoint permissions and SharePoint Advanced Management restrict agent access to content, preventing oversharing and unintended data exposure.

The Copilot Studio section dives into Power Platform Admin Center governance: environments, role-based access, DLP policies, pipelines, publishing controls, and cost management via metered consumption. Practical guidance is given on separating development, testing, and production environments and introducing “human in the loop” approvals.

Microsoft Purview receives extensive coverage, including sensitivity labels, DLP, Data Security Posture Management for AI, insider risk management, communication compliance, eDiscovery, audit logs, and data lifecycle management. The final section provides a three-phase adoption roadmap, from forming an internal champion team to organization-wide deployment with cost and usage controls.

💡 Why it matters?

This whitepaper translates “responsible AI” into concrete admin actions. It shows that AI governance is not an abstract compliance layer but an operational discipline embedded in identity, permissions, data protection, monitoring, and spend control. For organizations facing the EU AI Act or internal audit pressure, it demonstrates how existing Microsoft tooling can already support enforceable governance. Crucially, it reframes governance as an enabler of scale, not a blocker of innovation.

❓ What’s Missing

The document is strongly Microsoft-centric and assumes full adoption of the Microsoft 365 ecosystem. There is little discussion of cross-platform agents, third-party model risks, or how these controls map explicitly to legal requirements such as the EU AI Act risk categories. A clearer governance maturity model or role mapping for legal, compliance, and security teams would strengthen its strategic usefulness.

👥 Best For

IT administrators, security teams, and governance leads in SMBs and large enterprises using Microsoft 365 Copilot, Copilot Studio, and SharePoint. Especially valuable for organizations building internal Centers of Excellence for AI and agent governance.

📄 Source Details

Microsoft, Administering and Governing Agents, Agent Governance Whitepaper, Version 1.0, 31 pages.

📝 Thanks to

Microsoft Product and Security Teams for consolidating operational, security, and governance practices into a single, implementation-ready reference.

About the author
Jakub Szarmach

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