Auto-Labeling sensitive labels in SharePoint, OneDrive and Exchange

Using Auto-Labeling Policies, the Organization can apply Sensitivity Labels to the documents in SharePoint Online & OneDrive and emails in Exchange. Sensitivity labels are unified labels across Microsoft 365.These labels are from Microsoft Information Protection Framework. This helps us to classify and protect organizational sensitive information. Using sensitivity labels, the end users don’t have to label the content manually. The organization don’t have to train Users to handle Label classification.

Auto-Labeling Policies support the organization to label content automatically. It avoids users training on Label classification and you can quit worrying about incorrect labelling. Users can concentrate on their work rather than learning label policies. Auto labeling feature is part of Sensitivity Labels which is available in Microsoft 365 E5 or equivalent license. The Organization can auto label the document at rest in SharePoint Online & OneDrive and auto label the emails sent & received in Exchange. It automatically labels up to 25,000 files per day in your tenant. It has a unique test mode called Simulation Mode. The simulation mode helps you to test the Policy, to review the test results and to fine tune the policy.

For more information refer the following link:

Microsoft Docs - Apply a sensitivity label to content automatically