Labeled data includes the correct answer or category associated with each example (e.g. an image tagged "cat"), used in supervised learning. Unlabeled data has no such annotation, used in unsupervised learning or to pretrain foundation models.
In GENAI-L (Domain 1, section 1.2) this connects to ML approaches (supervised/unsupervised): generative AI foundation models are pretrained mainly on huge volumes of unlabeled data.
Labeled vs. unlabeled data is a concept that can show up on the exam. Check the full guide to see it in context.