Glossary
Sensitivity label
Also known as: data classification label, MIP label
A sensitivity label is a tag applied to documents, emails, sites, or containers to classify how confidential their content is and to enforce protection such as encryption, access limits, or watermarks. In Microsoft 365, labels like "Confidential" or "Public" travel with the content wherever it goes. Consistent labeling is a foundation of data protection: it tells people and tools, including Copilot, how each item may be shared, stored, and used across the tenant.
Sensitivity labels turn an abstract classification policy into protection that follows the content. Applied to a file or a Teams site, a label can enforce encryption, restrict external sharing, and signal how the content should be handled.
Why they matter
Labels give both people and automated tools a consistent signal. When Copilot respects labeling and protection, sensitive material is far less likely to be surfaced or reused inappropriately.
How Rencore helps
Rencore reports on label coverage and inconsistencies across the tenant, helping you find unlabeled or mislabeled content that contributes to oversharing. Combined with continuous policy monitoring, this strengthens your overall AI governance posture.
Related reading
See the FAQ for how labeling and governance fit together.