Sensitivity label setting expands Copilot content blocking
Microsoft Message Center item MC1297982 says Microsoft is expanding an existing sensitivity label setting that controls whether connected experiences can analyse file content. The update applies to Word, Excel, and PowerPoint. The item was updated on 3 June 2026. Public preview runs from mid-May to mid-June, and general availability is expected from mid-June to late June 2026. Files with the configured label setting will not be sent to Microsoft connected experiences for content analysis.
Before this change, SharePoint and Teams admins mainly thought about Copilot readiness through permissions, external sharing, and content ownership. Those still matter, but sensitivity labels now give admins a file-level way to block content analysis for the highest-risk Office files. The catch is operational. Labels only help where they are configured and applied. Old unlabeled documents, inconsistent label use, and unclear owner decisions still leave Copilot readiness work in the hands of the same small admin team.
Analysis
Review which sensitivity labels use the content-analysis blocking setting, then test one labelled Word, Excel, and PowerPoint file so helpdesk knows what users will see when Copilot cannot analyse the content.
Source note
Pulse published by Collab365 Spaces. Cite as "Sensitivity label setting expands Copilot content blocking", Collab365 Spaces. 1 source referenced.