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AI Governance|30 Jul 2026

Microsoft cut AI agent security out of standard Defender licenses on 1 July.

Microsoft cut AI agent security out of standard Defender licenses on 1 July.

The Story

Copilot Studio and Foundry agents now need a separate Agent 365 license or they run with zero threat protection.

Why It Matters

Many businesses assumed Defender for Cloud Apps or Defender for Cloud already covered any Copilot Studio or Foundry agent they had built or enabled. As of 1 July that stopped being true: threat detection and real-time blocking for those agents now require an Agent 365-eligible license (Microsoft 365 E5, Business Premium, or the standalone add-on). Tenants without one lost the protection with no separate warning beyond an admin banner.

What To Do About It

Ask your IT provider to confirm whether your tenant carries an Agent 365-eligible license and whether any Copilot Studio or Foundry agent you already use lost real-time blocking on 1 July. A 25-seat, 30-day admin-led trial is available if you need to check before committing to the 15 USD per user per month standalone license.

agent 365copilot studio securityai agent governancemicrosoft licensingshadow agentsdefender for cloud apps

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