AIP supports a range of file types listen in the following link
With the help of administrators' pre-established criteria and circumstances, AIP can automatically add labels to documents, enabling it to identify sensitive data—like credit card numbers—in Word documents and other types of documents. To protect data, AIP uses the Azure RMS, which is integrated with other Microsoft services and uses identity, authorization policies, and encryption. This ensures that the protection is retained with the documents and emails no matter where they are located, allowing the owner to retain control over the content even after it is shared.
AIP scanner, running on Windows Server, uses policy rules to detect sensitive information and apply specific labels to documents; it can also apply a default label to all documents in a repository without inspecting the file contents; or it can be used in reporting mode to discover sensitive information. For on-premises storage, the scanner can be used to discover, classify, and protect documents stored on network shares and Microsoft SharePoint Server sites.
https://learn.microsoft.com/en-us/azure/information-protection/aip-classification-and-protection