You must first make sure that Microsoft Purview Information Protection (formerly part of Microsoft 365 Compliance Center) is correctly configured in your company before you can apply sensitivity labels in Power BI. Administrators must make sure users have a compatible Microsoft 365 license (like E5 or AIP Plan 2) and create and publish sensitivity labels using Microsoft Purview. It is also necessary to enable "Information protection" in the Power BI tenant setting.
Applying a sensitivity label is simple after the setup is finished. Open your report, dashboard, or dataset in Power BI Desktop or Power BI service. Depending on the version or interface, there may be a "Sensitivity" or "Label" dropdown in the top ribbon. Select the relevant label by clicking on it, such as Public, Highly Confidential, or Confidential.
After that, the label is applied and moves with the file, even if it is exported to PowerPoint, Excel, or PDF.
Sensitivity labels aid in the automatic enforcement of encryption and compliance guidelines, such as limiting download or sharing options according to classification. The dropdown will only show published labels that are accessible to your account, and some labels might have required tooltips or justifications for user awareness.