The widespread rollout of Copilot and other generative AI tools has thrown organisational data into the spotlight. For many organisations, it’s prompted a wave of “soul-searching”: What sensitive data do we hold? Where is it stored? Who can access it, and how do we make sure it stays safe – especially in an AI-enabled world?
And with cyberattacks becoming both more frequent and more sophisticated throughout 2025, data security is no longer a quiet concern for IT – it’s a boardroom priority.
That’s where Data Loss Prevention (DLP) comes in. But let’s be clear: you don’t need to be on Microsoft 365 E5 to get started with DLP. You can take meaningful, risk-reducing action with the tools available in E3. The most important thing is to begin. Because once the foundations are in place, it’s easier to prove value, secure buy-in, and chart a clear path forward.
Why getting started is often the hardest part
At Cloud Essentials, we often see organisations stall before they start. It’s not due to a lack of tools – it’s the organisational complexity that tends to get in the way.
Bringing together the right stakeholders, aligning legal, compliance, security and IT teams, and agreeing on what good looks like (legally, ethically, and technically) can take time. And the technical implementation of policies, even using something as comprehensive as Microsoft Purview, needs thoughtful planning and strong consensus to avoid missteps like over-labelling or false positives.
That’s why we’ve developed a foundational deployment approach to help our clients get off the ground fast – regardless of whether they’re on E3 or E5. This starter setup includes manual labelling using Microsoft’s built-in sensitive information types, and DLP policies for labelled content. It’s a lightweight yet powerful way to establish a baseline; help teams understand the what, why and how; and build early momentum on the governance journey.
What you get in E3
Even within Microsoft 365 E3, there’s a lot to work with:
- Information Protection tools to help label and secure sensitive data across Exchange, SharePoint, and OneDrive.
- Data Loss Prevention for labelled content, helping to monitor and restrict the sharing of sensitive information.
- Compliance Manager, which visualises your compliance posture and helps track progress toward key frameworks like ISO 27001 and GDPR.
- AI risk visibility, offering insights into how unsanctioned AI tools are being used in your environment and the potential risks to your data.
This combination of tools provides early warning signs, visual progress, and practical protections that reduce risk – all without needing to jump straight to E5.
The E5 gamechangers
Once your data governance foundation is in place, the real power of Microsoft Purview – and the wider E5 ecosystem – begins to show.
By upgrading to E5, you gain access to:
- Automatic labelling powered by machine learning and trainable classifiers.
- Encryption and access restrictions for highly sensitive data.
- Insider Risk Management tools to detect and investigate risky user behaviour.
- Communication Compliance to monitor and respond to inappropriate or non-compliant communications.
- Advanced DLP analytics to track incidents, identify patterns, and fine-tune policies.
These features enhance security while freeing up your teams to focus on higher-value work by reducing manual overhead. Whether it’s automatically applying labels, proactively detecting risk, or escalating policy violations, E5 turns data governance from a reactive effort into a proactive, strategic capability.
Introducing Security Copilot
And now, there’s a new reason to make the move to E5.
Security Copilot, Microsoft’s AI-driven security assistant, is now included in M365 E5. It’s an absolute force multiplier for security and compliance teams, enabling faster incident response, sharper threat detection, and streamlined investigation workflows.
Think of it as a tireless AI analyst that’s plugged into your Microsoft Defender, Purview, Entra, and Intune signals – helping your team connect the dots and act decisively. It automates routine tasks, generates natural language summaries, and learns continuously from both global threat intel and your own environment.
With Security Copilot on your side, E5 becomes more than a licence upgrade – it becomes a strategic security investment.
From good start to great strategy
Once the groundwork is laid, we encourage our Cloud Essentials clients to move into the next phase by establishing a Data Governance Panel – a multi-disciplinary forum that brings stakeholders together to steer the roadmap. We guide this process with a risk-based approach, helping prioritise adoption of more advanced Purview features in line with real-world threats and compliance objectives.
This means rolling out automation and AI where it makes the biggest impact, addressing business-specific risks, and giving your teams the confidence to manage sensitive data at scale.
You don’t need E5 to start – just the will to begin
Data governance is not a switch you flip – it’s a journey. But every journey starts with a first step, and there’s plenty of value to be gained within the E3 toolset.
That said, E5 brings a whole new level of maturity, enabling automation, deep analytics, and powerful AI-driven capabilities like Security Copilot that are set to redefine how we think about security and compliance.
At Cloud Essentials, we speak the languages of security, compliance, and technical deployment, and we’re experts in translating between them. Our experienced team helps you build momentum fast, align stakeholders, and make smart licensing decisions that deliver both risk reduction and return on investment.