If you’ve ever wondered how AI-powered DLP in Microsoft 365 can go beyond alerts and actually solve real-world problems, you’re in the right place. This blog explores a powerful use case where DLP policies, Power Automate, Azure Functions, and GPT-based AI combine to form an intelligent, automated incident response pipeline. We’re not just talking about policy enforcement anymore—we’re talking about AI that understands your data.
The Real Problem with DLP Alerts
Traditional DLP alerts in Microsoft 365 are useful, but often lack critical context. For example, a file containing source code might trigger a policy—but a SOC analyst is left wondering:
What programming language is this?
Is there sensitive information like hardcoded secrets?
Should this file be quarantined or ignored?
AI-powered DLP in Microsoft 365 tackles this head-on.
Watch the full solution in the video below
The Power of Automation + GPT
We implemented a solution where a Trainable Classifier identifies source code uploads. The action? Trigger a Power Automate flow. This flow:
Extracts the file content in binary
Converts it to human-readable text via an Azure Function
Uses the GPT model to extract:
Language
Purpose
API endpoints
Hardcoded tokens
Risk level & explanation
Quarantines the file
Updates metadata with all findings
Now, AI-powered DLP in Microsoft 365 does the heavy lifting, so your SOC team doesn’t have to.
Why This Matters
This isn’t just a cool integration—it solves real security challenges:
Speeds up response time dramatically
Reduces false positives
Helps analysts prioritize incidents
Enables human-in-the-loop review when needed
The DLP “Trigger Flow” action becomes a game-changer when paired with AI.
Real-World Relevance
This solution came out of a real customer challenge. Their team struggled to triage hundreds of DLP incidents without enough context. By implementing this AI-powered pipeline, they were able to:
✅ Cut down investigation time by 70%
✅ Quarantine suspicious files before violations occurred
✅ Build trust between InfoSec and Compliance teams
The Bigger Picture
This is more than a use case. It’s a glimpse into the future of AI-powered DLP in Microsoft 365—where data protection is intelligent, contextual, and automated.
If you’re looking to reduce noise, act fast, and stay compliant, this is the direction your security program should be heading.
Wrapping Up
AI-powered DLP in Microsoft 365 isn’t just about detection—it’s about intelligent action. From identifying risky source code to automatically responding with precision, this approach shows how Microsoft 365 can be supercharged with AI to truly protect your data.
