Question 311 of 217
How to Automatically Inherit Sensitivity Labels from Source Data in Power BI
You are managing a Power BI environment that uses Microsoft Purview for data governance. You need to ensure that all new datasets automatically inherit sensitivity labels from their source data. What should you configure?
Quick Answer
The answer is to configure automatic labeling policies in Microsoft Purview that propagate sensitivity labels from source data to Power BI datasets. This is correct because Purview’s automatic labeling policies are designed to detect and inherit sensitivity labels directly from the source data—such as files in Azure SQL or Azure Blob Storage—and apply them to downstream Power BI datasets without manual intervention. On the PL-300 exam, this question tests your understanding of how Microsoft Purview integrates with Power BI for data governance, specifically the distinction between automatic inheritance versus manual labeling or classification-only tools. A common trap is confusing Purview’s automatic labeling with manual label application or with Azure Information Protection’s classification scanner, which does not handle inheritance to Power BI. Remember the key: automatic inheritance requires a Purview policy that explicitly propagates labels from source to destination—think “source-to-service propagation” as your memory anchor.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
In Microsoft Purview, set up 'Automatic labeling' policies that propagate labels from source to Power BI datasets.
Microsoft Purview's automatic labeling policies can propagate sensitivity labels from source data to Power BI datasets automatically, ensuring new datasets inherit labels. Option A is incorrect because enabling sensitivity labels in Power BI tenant settings only allows manual labeling and does not enforce automatic inheritance from source data. Option C is incorrect because using Purview Data Map to scan and manually apply labels does not provide automatic propagation. Option D is incorrect because a Power Automate flow would require custom setup and is not the native mechanism for automatic label inheritance from source to Power BI.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable 'Sensitivity labels' in Power BI tenant settings and require labels on datasets.
Why it's wrong here
This requires manual labeling, not automatic inheritance.
- ✓
In Microsoft Purview, set up 'Automatic labeling' policies that propagate labels from source to Power BI datasets.
Why this is correct
Automatic labeling policies can propagate labels.
- ✗
Use Microsoft Purview Data Map to scan source data and manually apply labels.
Why it's wrong here
Manual application is not automatic.
- ✗
Configure a Power Automate flow to apply labels based on dataset metadata.
Why it's wrong here
This is a custom solution, not native automatic inheritance.
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Same concept, more angles
1 more way this is tested on PL-300
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization is implementing a data sensitivity labeling strategy for Power BI. You have created labels in Microsoft Purview Compliance Portal. After publishing a report, you notice that some labels are not available for selection in Power BI. What is the most likely cause?
medium- A.The labels were created in the wrong workspace.
- B.The Power BI tenant does not have Premium capacity.
- ✓ C.The labels are not included in a label policy that applies to Power BI.
- D.Users do not have Power BI Pro licenses.
Why C: Sensitivity labels must be included in a label policy that targets Power BI for them to appear in the Power BI service. Option A is wrong because labels are created in the Microsoft Purview Compliance Portal, not workspaces. Option B is wrong because Premium capacity is not a prerequisite for sensitivity labels in Power BI. Option D is wrong because Power BI Pro licenses are required to apply sensitivity labels to content, but the labels themselves will still be available in the user interface regardless of license if the policy is configured correctly.
Last reviewed: Jun 21, 2026
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