Microsoft recommends data controls for government AI adoption

Microsoft’s 2026 Digital Defense Report recommends government AI data controls, system-level testing, and shared security operations to support adoption while retaining agency control over sensitive information.

Under the proposed model, public bodies rely on a common, AI-assisted security service while maintaining isolated data environments. Its recommendations connect AI deployment to access governance, accountable automation, and workforce development.

Terrell Cox, CVP and Deputy CISO of Customer Security at Microsoft, said: “A model may be one component, but its security also depends on the data it can reach, the tools it can use, the identities and permissions involved, and the infrastructure and services around it.”

Microsoft’s guidance for the public sector calls for evaluating AI systems in their deployment environments, including interactions among models, tools, data, and users, with monitoring continuing after deployment.

Data controls and memory protection

Managing…