Azure Information Protection (AIP) unified labeling: what it is and how it works

Last update: 26/06/2025
Author Isaac
  • Azure Information Protection allows you to classify, label, and protect sensitive information in Microsoft 365.
  • Unified tagging simplifies the application and management of security policies from a single portal.
  • Protection travels with documents, maintaining control over who accesses and how data is used.

Azure Information Protection (AIP)

In today's business world, where information constantly circulates between employees, clients and collaborators, protect sensitive data has become a priority task for all types of organizations. It's no longer enough to rely on firewalls or strong passwords; protection must travel alongside documents throughout their entire lifecycle. This raises the need for specialized tools such as Azure Information Protection (AIP), which go far beyond simple encryption and become key pillars for secure information management.

If ever you wondered How to ensure that only the right people can access, read, and modify your most sensitive files and emails, this article is for you. Here you will discover what Azure Information Protection is, how it works unified labeling, its advantages, technical operation, integration with the Microsoft ecosystem, and why it represents a leap forward in data protection in the cloud and in hybrid environments.

What is Azure Information Protection (AIP)?

Azure Information Protection, known as AIP, is a Microsoft cloud solution integrated within the family of Microsoft Purview Information ProtectionIts main mission is to enable companies classify, label, protect and control sensitive information both in documents and emails, relying on technologies such as encryption and confidentiality labeling to ensure data security from its creation to its destination, inside or outside the organization.

AIP is designed to be a powerful yet very flexible tool, It is not an isolated solution: It comes standard with many licenses. Microsoft 365, which facilitates its adoption in business environments that already use Word, Excel, PowerPoint or Outlook. Its full integration allows you to Users can encrypt, label, and control access to internal company information easily and without changing your usual work habits.

The key underlying technology is Azure Rights Management (Azure RMS), responsible for providing persistent security to files, so that permissions and tags travel with the content, managing who can view, edit, or forward it based on the assigned security level.

Key features of Azure Information Protection

Azure Information Protection stands out for its wide variety of advanced features Designed to cover different information protection and classification scenarios. Some of the most relevant features are:

  • Information classification: Allows you to set different levels of confidentiality for documents and emails, either manually, automatically, or as recommended by organizational policies.
  • Unified labeling: Introduces a consistent way to apply and manage security labels across the Microsoft 365 environment, making administration and compliance easier.
  • Data encryption: Protects content through robust encryption, ensuring that only authorized users can access information, regardless of where it is stored or transmitted.
  • Permit control and monitoring: Allows you to assign specific permissions (read, edit, forward) to users and groups, and keep detailed track of who accesses each document and what they do with it.
  • Integration with applications and services: Works natively in Office and Microsoft 365 tools, and offers SDKs to extend protection to apps from third parties or our own developments.
  • Information scanner and analyzer: Facilitates automated discovery and tagging of files stored locally on servers or repositories.
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These capabilities, combined, transform data protection from an isolated IT concern into an automated, integrated, and manageable process at scale.

The concept of 'unified labeling'

Until recently, there were differences in how protection labels were applied and managed across Office applications and Microsoft services. This complicated administration and often led to confusion among users and security teams. To address this, Microsoft introduced the unified labeling (unified labeling), a key evolution that Unifies the experience of labeling sensitive information across the Microsoft 365 ecosystem and Purview Information Protection.

With this functionality, Organizations can define, publish, and manage sensitivity labels from a single compliance portal, consistently applied across applications such as Word, Outlook, Excel, PowerPoint, Teams, SharePoint and OneDrive. This eliminates fragmentation and ensures that security policies are respected regardless of where the file is created or shared.

Unified labeling also marks the end of the legacy AIP labeling add-on (retired April 2024), and Microsoft encourages businesses to migrate all their policies and labels to the integrated system, improving the reliability, performance and ease of administrationIn addition, the system allows for the integration of labels with DLP (Data Loss Prevention) sensors and other compliance features.

How does Azure Information Protection work technically?

AIP's operation is based on a cloud architecture supported by several key components:

  • Azure Rights Management: The engine that provides encryption, rights control, and persistence protection for files and emails.
  • Tags and policies: Administrators create sensitivity labels (Confidential, Internal Only, Public, etc.) and set rules and conditions for their application (manual, recommended, or automatic).
  • Applications and clients: Users can apply labels and protection from within Office applications, whether on desktop, mobile, or web versions. There are also specific AIP clients for advanced or OS alternative.
  • Microsoft Information Protection SDK: Developers can use this kit to deliver native labeling and protection to third-party or custom applications, expanding the scope of tailored security.
  • Scanner and analyzer: allow you to inspect local repositories, identify sensitive information, and automatically apply labels and protection, especially useful for migrations or audits.
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The typical process includes:

  • The user creates or edits a file or email.
  • The platform may suggest a label based on the content detected (for example, if it finds personal data).
  • The user or an automatic rule applies the label and activates protection (encryption, access restrictions, watermarks, etc.).
  • Information travels protected, and only those with the appropriate permissions can view, modify, or share it. Permissions are retained, even if the file leaves the corporate environment.
  • The administrator can view reports, revoke access to documents, or modify permissions at a later time.

A key advantage is that protection is not limited to the network perimeter, but travels permanently with the document wherever it goes..

Plans, licenses, and features available in Azure Information Protection

AIP is available through different Microsoft 365 plans and Purview, with several options ranging from Azure Information Protection Premium P1 to P2Each of them gives access to different levels of functionality:

  • Purview Information Protection for Office 365: Includes protected content consumption, custom templates, basic integration, and essential administrative controls.
  • Azure Information Protection Premium P1: Adds protection for non-Office files, manual classification, local scanner and analyzer, tracking and revocation, cross-platform SDK, and more.
  • P2: Maximizes capabilities by including automatic classification rules, double-key encryption, and automated labeling on local files.

The choice of plan depends on the size of the organization, the criticality of the data, and the desired level of automation. Furthermore, in regions such as the European Union, availability and pricing vary by country.

How labeling and classification works

One of the pillars of Azure Information Protection is the classification using sensitivity labelsThese labels can be applied manually, through automatic suggestions, or mandated based on company policies.

Tags allow, for example:

  • Prevent printing or editing of certain documents.
  • Restrict email forwarding or exporting.
  • Force encryption and visual marking (watermarks, warnings, etc.).
  • Limit access to specific groups or individuals.

El administrator can even prevent users from changing or deleting a label If the content is already protected and they don't have sufficient permissions, thus ensuring that the most sensitive information always remains under control.

Integration and compatibility with other applications and solutions

AIP has been designed to integrate into the day-to-day operations of organizations that already use Microsoft 365, but its scope goes much further. Through the Microsoft Information Protection SDK, it is possible to extend the classification and protection to third-party services and applications: CAD/CAM systems, cloud security agents, leak prevention solutions, mobile apps, Linux, iOS, Mac and more. You can find more information on how to use Microsoft Purview in its official documentation..

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Likewise, some programs such as Nitro PDF Pro They have integrated support for AIP tags, so that the permissions and restrictions defined by the author are respected even if the file leaves the traditional Office environment.

La non-Office file protection (images, PDFs, text documents, etc.) is also possible in advanced plans, allowing confidentiality management to cover any type of data relevant to the organization.

Advanced management, administration and monitoring

One of the great added values ​​of Azure Information Protection lies in its powerful management console, from which security officers can:

  • Create, modify, and deploy labels and policies for the entire organization.
  • Monitor the use of protected information, including who accesses, edits, or shares it.
  • Revoke access to documents in case of error or incident.
  • Limit the application of policies to specific groups or specific users.
  • Edit registries to prevent functions from running on unlicensed users.

Integration with Microsoft Purview admin centers makes it easy to monitor and comply with regulations such as GDPR, HIPAA, ISO 27001, and others required in highly regulated industries.

purview
Related articles:
How to Use Microsoft Purview: A Comprehensive Guide to Protecting and Governing Your Data

Highlighted features and competitive advantages

Among the many possibilities offered by Azure Information Protection, the following stand out:

  • Bring Your Own Key (BYOK): allows organizations to manage their own encryption keys, ensuring greater control over security.
  • Double key encryption: adds an extra layer of security by requiring two different passwords to access certain ultra-sensitive documents.
  • cross-platform SDK: enables the extension of labeling and protection to any operating environment.
  • Centralized management and monitoring: From the same console, it is possible to control all aspects of the lifecycle of sensitive information.
  • DLP Integration and other solutions: By persisting classification metadata, data loss prevention solutions can identify and act on labeled sensitive information.
  • Persistent, location-independent protection: Files remain protected even if they leave the corporate environment.

And as a highlight: the solution is constantly updated and expanded, adapting to new scenarios and regulatory requirements through continuous integration into the Microsoft Purview and Microsoft 365 universe.