Microsoft lets tenants auto-label five times more SharePoint files each day
Reviewed by Helen Jones
Microsoft is raising the daily cap for server-side auto-labeling in SharePoint Online and OneDrive from 100,000 files per tenant to 500,000. The change was announced in Message Center item MC1452372 (also tracked as RM567890). Public preview was scheduled across September 2026. Worldwide general availability is planned from early to late October 2026. The limit remains a per-tenant daily quota, not unlimited throughput. Auto-labeling still depends on existing Microsoft Purview sensitivity label policies and the right licensing.
Copilot answers from Microsoft 365 files that users can already reach. Before this change, large libraries often sat unlabeled for weeks because a day’s quota filled up, so classification lagged behind what people actually stored and searched. After October, the same policies can catch up five times faster, which shortens the window where Copilot can surface content that has no sensitivity label yet. It does not invent labels, fix weak policies, or change what Copilot is allowed to see. It only speeds the queue for work you already configured.
Analysis
Treat this as a governance capacity change, not a Copilot upgrade. Before October, list the SharePoint and OneDrive libraries your team actually uses with Copilot, check whether auto-label policies already cover them, and note whether they were hitting the old 100,000-file daily backlog.
Source note
Pulse published by Collab365 Spaces, reviewed by Helen Jones on . Cite as "Microsoft lets tenants auto-label five times more SharePoint files each day", Collab365 Spaces. 3 sources referenced.