Can users apply sensitivity labels manually in Microsoft 365?

Users can indeed apply sensitivity labels manually in Microsoft 365, making this the correct choice. Sensitivity labels are designed to help organizations classify and protect their data based on its sensitivity level. When enabled, individual users have the capability to select and apply these labels to documents and emails, allowing them to ensure that sensitive information is appropriately marked and protected according to company policies.

This capability empowers users to take an active role in data governance, understanding the sensitivity of the information they are handling, and assessing the risk involved. For instance, a user might label a document as "Confidential" if it contains sensitive personal information, thereby enforcing security measures like encryption or restrictions on sharing.

The functionality of sensitivity labels enhances an organization's data protection strategy while promoting user awareness and responsibility regarding data handling practices.