Apply a sensitivity label to content automatically
When you create a sensitivity label, you can automatically assign that label to content containing sensitive information, or you can prompt users to apply the label that you recommend.
The ability to apply sensitivity labels to content automatically is important because:
You don't need to train your users on all of your classifications.
You don't need to rely on users to classify all content correctly.
Users no longer need to know about your policies — they can instead focus on their work.
For information about license requirements, see Subscription and licensing requirements for sensitivity labels.
The auto-labeling settings are available when you create a sensitivity label in the Microsoft 365 compliance center, Microsoft 365 security center, or Office 365 Security & Compliance Center under Classification > Sensitivity labels.
Apply a sensitivity label automatically based on conditions
One of the most powerful features of sensitivity labels is the ability to apply them automatically to content that matches certain conditions. In this case, people in your organization don't need to apply the sensitivity labels — Office 365 does the work for them.
You can choose to apply sensitivity labels to content automatically when that content contains specific types of sensitive information. When you configure a sensitivity label to be applied automatically, you see the same list of sensitive information types as when you create a data loss prevention (DLP) policy. So you can, for example, automatically apply a Highly Confidential label to any content that contains customers' personally identifiable information (PII), such as credit card numbers or social security numbers.
After you choose your sensitive information types, you can refine your condition by changing the instance count or match accuracy. For more information, see Tuning rules to make them easier or harder to match.
Further, you can choose whether a condition must detect all sensitive information types, or just one of them. And to make your conditions more flexible or complex, you can add groups and use logical operators between the groups. For more information, see Grouping and logical operators.
When a sensitivity label is automatically applied, the user sees a notification in their Office app. They can choose OK to dismiss the notification.
Recommend that the user apply a sensitivity label
If you prefer, you can recommend to your users that they apply the label. With this option, your users can accept the classification and any associated protection, or dismiss the recommendation if the label isn't suitable for their document or email.
Recommended labels are supported in Word, PowerPoint, and Excel (and require that the Azure Information Protection unified labeling client is installed).
Here's an example of a prompt when you configure a condition to apply a label as a recommended action, with a custom policy tip. You can choose what text is displayed in the policy tip.
How automatic or recommended labels are applied
Automatic labeling applies to Word, Excel, and PowerPoint when you save a document, and to Outlook when you send an email. These conditions detect sensitive information in the body text in documents and emails, and to headers and footers — but not in the subject line or attachments of email.
You can't use automatic classification for documents and emails that were previously manually labeled, or previously automatically labeled with a higher classification. Remember, you can only apply a single sensitivity label to a document or email (in addition to a single retention label).
Recommended classification applies to Word, Excel, and PowerPoint when you save documents.
You can't use recommended classification for documents that were previously labeled with a higher classification. When the content's already labeled with a higher classification, the user won't see the prompt with the recommendation and policy tip.
How multiple conditions are evaluated when they apply to more than one label
The labels are ordered for evaluation according to their position that you specify in the policy: The label positioned first has the lowest position (least sensitive) and the label positioned last has the highest position (most sensitive). For more information on priority, see Label priority (order matters).
Don't configure a parent label to be applied automatically or recommended
Remember, you can't apply a parent label (a label with sublabels) to content. Make sure that you don't configure a parent label to be auto-applied or recommended, because the parent label won't be applied to content in Office apps that use the Azure Information Protection unified labeling client. For more information on parent labels and sublabels, see Sublabels (grouping labels).