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Is there any way to include newly created SharePoint site in an existing retention policy created in security and compliance?

or once in a month all newly created sites to be added in a current retention policy?

We do not want to add all the sites in retention policy and only want to add sites which are created by a specific user. Is this possible through any out of the box functionality? If not what could be other potential ways to do it?

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You can't automatically add new sites explicitly to the retention policies out-of-the-box.

One way to automate it is to script this with PowerShell. I'm including all PowerShell commands you'll need to complete this task.

Get a list of SharePoint Online sites

Install-Module -Name Microsoft.Online.SharePoint.PowerShell -Scope CurrentUser
Get-SPOSite -Limit ALL

Install the Exchange Online PowerShell Module

Install-Module ExchangeOnlineManagement -Scope CurrentUser

Establish a new session

Connect-PPSSession

Get existing retention policies

Get-RetentionCompliancePolicy -Identity "SharePoint Retention Polocy" -DistributionDetail

Add a new site to the retention policy

Set-RetentionCompliancePolicy -Identity "SharePoint Retention Polocy" -AddSharePointLocation "https://contoso.sharepoint.com/sites/teams/finance"

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