Generative AI applications are transforming how organizations operate. From automated content creation to advanced analytics, these tools can streamline processes and spark innovation. However, they also introduce new risks: data leakage, compliance violations, and misuse of corporate resources. Blocking unsanctioned AI apps isn’t just about preventing unauthorized software—it’s about protecting your organization’s data, reputation, and regulatory standing.
Below is a technical, step-by-step guide showing how Microsoft Defender for Cloud Apps can help you discover, monitor, and block risky AI apps—while integrating with other Microsoft security solutions to strengthen your organization’s overall security posture.
1. The Importance of Blocking Unsanctioned AI Apps
- Data Privacy and Compliance
Generative AI apps may process sensitive information or store data in locations that violate internal policies or regulations (e.g., SOC2, HIPAA, GDPR). Blocking unsanctioned apps ensures that only vetted tools can access or handle your organization’s data. - Reduced Attack Surface
Each AI app—especially one using large language models—can expand your organization’s attack surface. Poorly configured apps or unknown dependencies can lead to data breaches or system compromise. - Maintaining Visibility
Sanctioned AI apps typically undergo security assessments and maintain documentation for support and auditing. Unsanctioned apps, by contrast, hide in the shadows—leading to blind spots in both operations and incident response. - Preserving Resource Efficiency
Generative AI tools can consume significant computational resources. Blocking unsanctioned apps helps you manage cloud costs and ensure bandwidth is allocated to approved tools.
For more information on the importance of discovering and monitoring AI apps, refer to Microsoft’s official guidance:
Discover, monitor, and protect the use of generative AI apps
2. Discovering Generative AI Apps
The first step in controlling AI usage is to find which apps employees are already using—even unknowingly. Microsoft Defender for Cloud Apps offers a Cloud App Catalog featuring hundreds of AI apps.
Step-by-Step
- Navigate to the Cloud App Catalog
- Go to the Microsoft Defender for Cloud Apps portal.
- Select Discover > Cloud App Catalog.
- Use the search bar or filters to locate the new “Generative AI” category.
- Configure Discovery Policies
- Go to Control > Policies in Defender for Cloud Apps.
- Create a new App discovery policy.
- Include the “Generative AI” category, and set risk thresholds (e.g., compliance certifications, region of data storage) to capture the apps you’re most concerned about.
Tip: Automatically classify AI apps by risk score. For example, you can flag generative AI apps that lack SOC2 compliance as higher-risk and in need of immediate review.
3. Monitoring and Managing Risk
After discovering which generative AI apps are in use, set up policies that trigger alerts when new AI apps appear or when unusual usage patterns occur.
Step-by-Step
- Create Activity Policies
- Go to Control > Policies.
- Select Create policy > Activity policy.
- Define conditions that trigger alerts for generative AI usage (e.g., creation of large data exports, repeated sensitive document uploads).
- Configure Alerts
- Go to Settings > Alerts.
- Create alert rules to notify security teams when suspicious or newly discovered generative AI apps are detected.
- Route alerts to the appropriate communication channels (email, Teams, SIEM, etc.) for rapid response.
Why This Matters:
Proactive alerts ensure you can act immediately when employees start using high-risk AI apps. This helps you address potential security or compliance issues before they escalate.
4. Blocking Unsanctioned Apps
Once you’ve identified risky or non-compliant AI apps, the next step is to unsanction them. By integrating with Microsoft Defender for Endpoint, you can automatically block these apps on managed devices.
Step-by-Step
- Unsanction Apps
- Return to the Cloud App Catalog in Defender for Cloud Apps.
- Locate the generative AI apps you want to block.
- Click Unsanction. This marks the app as “unsanctioned” within your environment.
- Integrate with Defender for Endpoint
- In Defender for Cloud Apps, ensure Microsoft Defender for Endpoint is integrated by visiting Settings > Cloud App Security (or the Integration section).
- Once integration is enabled, any app flagged as “unsanctioned” will be automatically blocked on devices managed by Defender for Endpoint.
Key Benefit:
By enforcing a strict “unsanctioned = blocked” policy, you prevent data from ever reaching these applications, drastically reducing the risk of unauthorized access or data leaks.
5. Enhancing Security Posture with Microsoft Purview
Defender for Cloud Apps integrates with Microsoft Purview for advanced security and compliance features. This includes built-in recommendations to harden your AI usage.
Step-by-Step
- Integrate with Microsoft Purview
- Go to Settings > Integrations in Defender for Cloud Apps.
- Configure the Microsoft Purview integration. This enables you to import compliance controls and recommended best practices.
- Review Security Recommendations
- Navigate to Security > Recommendations within Defender for Cloud Apps.
- Implement suggested actions—like improved logging, user permission reviews, or additional encryption controls—to strengthen your AI security posture.
Why Purview?
Purview provides end-to-end data governance, ensuring that data remains secure and compliant throughout its lifecycle, even as it traverses multiple AI applications and services.
For details on building a comprehensive AI security posture from code to runtime, see:
Secure your AI applications from code to runtime with Microsoft Defender for Cloud
6. Conclusion
Blocking unsanctioned AI apps isn’t about stifling innovation—it’s about empowering your organization to use AI responsibly and securely. By using Microsoft Defender for Cloud Apps to discover, monitor, and unsanction AI apps, you can protect sensitive data, meet compliance obligations, and maintain visibility over your AI ecosystem.
Key Takeaways:
- Visibility First: Identify all generative AI apps in use to avoid security blind spots.
- Policy Enforcement: Automate risk assessments and alerts so that suspicious or non-compliant apps don’t slip through the cracks.
- Endpoint Blocking: Combine Defender for Cloud Apps with Defender for Endpoint to instantly prevent risky AI apps from running on managed devices.
- Continual Improvement: Integrate with Microsoft Purview and follow security recommendations to create a robust, adaptable defensive posture.
By implementing these steps, organizations can harness the power of generative AI while minimizing potential risks—allowing innovation to flourish in a secure, compliant environment.
Additional References
- Discover, monitor, and protect the use of generative AI apps
- AI security posture management – Microsoft Defender for Cloud
- Secure your AI applications from code to runtime with Microsoft Defender for Cloud
- Reference table for all AI security recommendations in Microsoft Defender for Cloud
By following the outlined steps and leveraging Microsoft’s integrated security offerings, you can confidently empower your teams to explore generative AI—while keeping your organization’s data, compliance posture, and reputation intact.
