diff --git a/docs/GENERATE_CUSTOM_LABELS.md b/docs/GENERATE_CUSTOM_LABELS.md
index b5b555f7..5bab2e33 100644
--- a/docs/GENERATE_CUSTOM_LABELS.md
+++ b/docs/GENERATE_CUSTOM_LABELS.md
@@ -13,23 +13,23 @@ If we wish to add detect changes to SQL queries in a given PR, we can add the fo
 When running the `generate_labels` tool on a PR that includes changes in SQL queries, it will automatically suggest the custom label:
 <kbd><img src=./../pics/custom_label_published.png width="768"></kbd>
 
-### Configuration options
-To enable custom labels, you need to add the following configuration to the [custom_labels file](./../pr_agent/settings/custom_labels.toml):
+### How to enable custom labels
+#### CLI
+To enable custom labels, you need to apply the [configuration changes](#configuration-changes) to the [custom_labels file](./../pr_agent/settings/custom_labels.toml):
+#### Github Action and Gihub App
+To enable custom labels, you need to apply the [configuration changes](#configuration-changes) to the `.pr_agent.toml` file in you repository.
+
+#### Configuration changes
  - Change `enable_custom_labels` to True: This will turn off the default labels and enable the custom labels provided in the custom_labels.toml file.
- - Add the custom labels to the custom_labels.toml file. It should be formatted as follows:
+ - Add the custom labels. It should be formatted as follows:
  ```
+[config]
+enable_custom_labels=true
+
 [custom_labels."Custom Label Name"]
 description = "Description of when AI should suggest this label"
-```
- - You can add modify the list to include all the custom labels you wish to use in your repository.
 
-#### Github Action
-To use the `generate_labels` tool with Github Action:
-
-- Add the following file to your repository under `env` section in `.github/workflows/pr_agent.yml`
-- Comma separated list of custom labels and their descriptions
-- The number of labels and descriptions should be the same and in the same order (empty descriptions are allowed):
+[custom_labels."Custom Label 2"]
+description = "Description of when AI should suggest this label 2"
 ```
-CUSTOM_LABELS: "label1, label2, ..."
-CUSTOM_LABELS_DESCRIPTION: "label1 description, label2 description, ..."
-```
\ No newline at end of file
+