How do you classify data?

Data classification involves organizing data into categories or groups based on shared characteristics or predefined criteria. This process can be guided by the type of data (e.g., structured, unstructured), sensitivity levels (e.g., public, confidential), or specific business needs (e.g., customer Demographics, sales data). Effective classification aids in data management, security, and retrieval, enabling organizations to make informed decisions and maintain compliance with regulations. Techniques may include manual tagging, automated algorithms, or machine learning models.