M365 Changelog: Outlook - Labeling email from attachments' label

MC518734 – Outlook desktop will match the highest sensitivity label from attachments on email. Admins can configure this to either use the cmdlet set-labelpolicy advanced setting or use the Compliance portal to configure the label policy, communicated in MC510786 (February ’23). Customers will see automatically or recommendations that emails get the higher label from attachments’ label.

This message is associated with Microsoft 365 Roadmap ID 100490

When this will happen:

Public Preview: Microsoft will begin rolling out early March 2023 and expect to complete by late March 2023.

Standard Release: Microsoft will begin rolling out early April 2023 and expect to complete by late April 2023.

How this will affect your organization:

If you have AIP UL Add-on label inheritance label policy setup already, and start using Outlook Native labeling, you will see the email get attachment label automatically or recommend you use attachments’ label. 

If you have not enabled any label policy for email, get label from attachment, then nothing will show up.

What you need to do to prepare:

If you have not enabled any label policy for email gets label from attachment, then you could either use set-labelpolicy cmdlet or the Information protection admin portal to enable that.