When you set a retention policy in Microsoft 365 Purview, you expect it to apply to all Copilot interactions, including chat history. However, many administrators report that the policy does not affect Copilot chats in Microsoft Teams or the Copilot pane. This happens because Copilot chat data is stored in a separate hidden mailbox folder that standard retention policies do not cover by default. This article explains why the retention policy misses Copilot chats and provides the specific steps to configure a policy that targets the correct data location.
Key Takeaways: Fixing Copilot Chat Retention Policy
- Microsoft Purview compliance portal > Data Lifecycle Management > Microsoft 365 > Copilot interactions: The only location that stores Copilot chat data for retention policy targeting.
- Retention policy scope > Include specific locations > Copilot interactions: Must be selected explicitly; the default “Exchange mailboxes” scope does not apply.
- PowerShell cmdlet Get-RetentionCompliancePolicy | fl Name, ExchangeLocation: Use this to verify that the policy includes the Copilot interactions location.
Why Retention Policies Do Not Cover Copilot Chats by Default
Microsoft 365 Copilot chat data is stored in a hidden system mailbox folder named “Copilot interactions” within each user’s Exchange Online mailbox. This folder is separate from the standard Inbox, Sent Items, and Deleted Items folders that traditional retention policies target. When you create a retention policy in the Microsoft Purview compliance portal and select “Exchange mailboxes” as the location, the policy applies only to standard mailbox folders. It does not include the Copilot interactions folder unless you explicitly configure it.
The Copilot interactions folder contains all chat sessions the user initiates through Copilot in Microsoft Teams, the Copilot pane in Microsoft 365 apps, and copilot.microsoft.com. Each chat is stored as a message item within this folder. Because the folder is hidden from the user’s Outlook folder list, administrators often overlook it when configuring retention policies.
Another common cause is the use of adaptive scopes or static scopes that do not include the Copilot interactions location. The retention policy must be configured with a scope that explicitly includes “Copilot interactions” as a location. If you use a policy that applies to all Exchange mailboxes without specifying the Copilot interactions sublocation, the policy will not process chat data.
Steps to Configure a Retention Policy That Applies to Copilot Chats
Follow these steps to create or modify a retention policy so it includes Copilot chat data. You need at least the Compliance Administrator role in Microsoft 365 to perform these actions.
- Open the Microsoft Purview compliance portal
Go to https://compliance.microsoft.com and sign in with your administrator account. In the left navigation, expand Data Lifecycle Management and select Microsoft 365. - Locate your existing retention policy or create a new one
If you already have a retention policy that should cover chats, click the policy name to edit it. If you need a new policy, click + New retention policy and follow the wizard until you reach the Choose locations page. - Select the Copilot interactions location
On the Choose locations page, toggle Exchange email to On. Then click Edit under the Exchange email location. In the Exchange locations panel that opens, scroll down and check the box next to Copilot interactions. This option appears only when the Exchange email location is enabled. - Confirm the scope and user assignment
If you use an adaptive scope, ensure the scope includes the users whose Copilot chats you want to retain. For static scopes, you can choose All users or select specific users. Click Next to continue the wizard. - Set the retention action and period
On the Decide what you want to do page, select the retention action such as Retain items for a specific period or Retain items then delete them automatically. Set the duration in days, months, or years. Click Next. - Review and submit the policy
Review the policy settings on the summary page. Confirm that Copilot interactions appears under the Exchange email location. Click Submit to apply the policy.
After submission, the policy may take up to 24 hours to fully apply to all existing Copilot chat data. New chat items created after the policy is active will be processed immediately.
If the Retention Policy Still Does Not Apply to Copilot Chats
Copilot interactions location is missing from the policy
If you completed the wizard but the Copilot interactions location is not listed in the policy summary, you likely missed step 3. The Copilot interactions checkbox is nested under the Exchange email location and is not visible until you click Edit on that location. Reopen the policy and verify the location is selected.
Policy applies to standard mail but not to chat data in the hidden folder
This occurs when the policy targets only the mailbox itself without the hidden subfolder. Use Exchange Online PowerShell to confirm the policy configuration. Run the following command:
Get-RetentionCompliancePolicy -Identity "Your Policy Name" | fl Name, ExchangeLocation, ExchangeLocationException
If the output does not show CopilotInteractions in the ExchangeLocation field, the policy is not configured for chat data. Edit the policy and reselect the Copilot interactions location.
Retention policy works for new chats but not for existing chat history
Retention policies apply to new items as soon as the policy is active. For existing items stored in the Copilot interactions folder before the policy was created, the policy may take up to seven days to process. This delay is by design. If after seven days the old chats are still not affected, check the policy scope to ensure it includes the date range of the old chats. A policy with a custom date range that excludes past dates will not retain or delete older items.
User mailbox is excluded by an adaptive scope rule
If you use adaptive scopes based on attributes like department or country, verify that the user’s attributes match the scope query. A mismatch excludes the user’s entire mailbox, including the Copilot interactions folder. Use the Content Search tool in Purview to test whether the policy applies to a specific user’s Copilot chats.
Retention Policy for Standard Mail vs Copilot Chats: Key Differences
| Item | Retention policy for standard mail | Retention policy for Copilot chats |
|---|---|---|
| Storage location | Inbox, Sent Items, Deleted Items, and other visible mailbox folders | Hidden “Copilot interactions” folder within the user’s Exchange mailbox |
| Default policy behavior | Applies automatically when you select Exchange mailboxes as a location | Does not apply unless you explicitly select the Copilot interactions sublocation |
| Policy creation path in Purview | Data Lifecycle Management > Microsoft 365 > Exchange email | Data Lifecycle Management > Microsoft 365 > Exchange email > Edit > Copilot interactions |
| Time to apply to existing items | Up to 7 days | Up to 7 days |
| Verification method | Content Search or Get-RetentionCompliancePolicy | Get-RetentionCompliancePolicy and check for CopilotInteractions in ExchangeLocation |
You can now configure a Microsoft 365 retention policy that correctly targets Copilot chat data by selecting the Copilot interactions location in the Purview compliance portal. After you apply the policy, verify its application using the Get-RetentionCompliancePolicy PowerShell cmdlet. For advanced scenarios, consider using a separate retention policy dedicated solely to Copilot interactions to simplify management and auditing.