Data Classification

Data classification is the process of organizing data into categories based on its type, sensitivity, business value, or regulatory requirements.

Organizations may classify information as public, internal, confidential, restricted, personal, financial, health-related, or another category relevant to their operations.

Classification helps determine which security, privacy, retention, access, and governance controls should apply to the data.

In privacy and AI governance, classification can also help organizations understand whether systems, vendors, or AI agents are interacting with sensitive information and whether additional review is required.