Microsoft Sensitivity Labels Help Copilot Adhere to Usage Policies

As more workplaces consider adopting tools like Microsoft Copilot, which uses artificial intelligence (AI) to enhance productivity, keeping sensitive data secure is top of mind. Microsoft sensitivity labels offer an effective way to protect information, especially as AI-powered tools analyze and interact with your data. Let’s explore how these labels work and how they can safeguard your files while still enabling integration with Microsoft Copilot.

What are Microsoft sensitivity labels?

Microsoft sensitivity labels are like digital “stamps” you can attach to files, emails, and other documents to define how they should be handled. These labels classify information based on its sensitivity and apply rules to protect it. Some sensitivity labels might include:

• Public - No restrictions, suitable for general information like newsletters.
• Confidential - Limited to internal use, such as marketing plans or internal memos.
• Highly confidential - Strictly controlled, protecting critical data like financial statements or trade secrets.

Sensitivity labels are a key feature of Microsoft Purview, a tool designed to help businesses manage, monitor, and secure their data. By integrating with tools like Microsoft 365 and Microsoft Copilot, these labels ensure your data remains protected when AI tools are in use.

How Microsoft sensitivity labels work

When you apply a sensitivity label to a document or email, it sets rules that govern how the information can be shared, accessed, and used. These rules include:

Access control

Sensitivity labels restrict who can view or edit documents. For instance, a "Highly Confidential" label may limit access to only specific users or teams.

Encryption

Labels can automatically encrypt files, ensuring only authorized users can open them.

Watermarks and visual cues

A label might add “Confidential” watermarks or headers to documents, reminding users to handle them carefully.

Automatic labeling

With Microsoft Purview, labels can be applied automatically based on the content. For instance, if a file contains sensitive information like Social Security numbers, it might be labeled as "Highly Confidential" without any manual steps.

How sensitivity labels integrate with Microsoft Copilot

Microsoft Copilot is designed to help users work smarter by using AI to summarize, draft, and analyze content across Microsoft 365 apps. While Copilot boosts productivity, it also interacts with your organization’s data, which may include sensitive information.

Here’s where sensitivity labels can be used:

• Guiding AI behavior: Sensitivity labels act as a boundary for Microsoft Copilot, ensuring your Copilot prompts only interact with data that aligns with your organization’s security policies. For instance, Copilot won’t include "Highly Confidential" information in a draft email unless it’s explicitly permitted.
• Restricting access to sensitive data: Even if Copilot generates suggestions or summaries, sensitivity labels ensure those outputs respect the rules tied to the underlying data. This helps prevent accidental exposure of private or confidential information.
• Complying with regulations: Sensitivity labels work with Copilot to ensure that AI-driven processes adhere to compliance standards like GDPR or HIPAA.

By combining sensitivity labels with Microsoft Copilot, organizations can embrace AI’s productivity benefits without compromising security.

How to apply Microsoft sensitivity labels

Applying sensitivity labels is simple, customizable, and works seamlessly in Microsoft 365 apps like Word, Excel, Outlook, and SharePoint. There are several ways to apply sensitivity labels:

• Open the file or email you’re working on.
• Click the Sensitivity button in the toolbar.
• Select the appropriate label (e.g., Public, Confidential, or Highly Confidential).

• Administrators can configure rules in Microsoft Purview to automatically label content. For example, an email containing financial account numbers might be labeled “Confidential” without requiring the user to enter anything manually.

• Purview sensitivity labels integrate directly with Copilot, ensuring that its AI tools respect and enforce your data protection policies.
  
  

Best practices for using sensitivity labels with Microsoft Copilot

1. Start simple: Sensitivity labels are customizable, but it’s easiest to start with a few broad categories (e.g., Public, Confidential, Highly Confidential) before introducing more detailed labels.
2. Train your team: Educate employees about sensitivity labels and their importance, especially when using AI tools like Copilot.
3. Leverage automation: Use automatic labeling to reduce manual effort and ensure consistency.
4. Monitor AI outputs: Regularly review how Microsoft Copilot interacts with sensitive data and ensure outputs align with your organization’s security policies.
   
   

Closing thoughts on Microsoft sensitivity labels

Microsoft sensitivity labels can be a helpful tool for protecting your data in a world increasingly driven by AI. When paired with Microsoft Copilot, these labels ensure your data remains secure while still enabling AI to deliver value. Whether you’re drafting a proposal, analyzing a spreadsheet, or sending an email, sensitivity labels can keep your data in the right hands – whether those hands are human or AI.

If you’re a Locknet client implementing Microsoft Copilot into your organization, using sensitivity labels can help balance productivity and security in your workplace. Contact your Technical Account Manager and read our Microsoft Copilot Deployment Guide to learn more about Copilot.