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Applies to: 
 SQL Server 
 Azure SQL Database 
 Azure Synapse Analytics 
 Analytics Platform System (PDW)
AUTO mode determines the shape of returned XML based on the query. In determining how elements are to be nested, AUTO mode heuristics compare column values in adjacent rows. Columns of all types, except ntext, text, image, and xml, are compared. Columns of type (n)varchar(max) and varbinary(max) are compared.
The following example illustrates the AUTO mode heuristics that determine the shape of the resulting XML:
SELECT T1.Id, T2.Id, T1.Name
FROM   T1, T2
WHERE Col1 = 1 /* actual predicate goes here*/
ORDER BY T1.Id
FOR XML AUTO;
To determine where a new <T1> element starts, all column values of T1, except ntext, text, image and xml, are compared if the key on the table T1 isn't specified. Next, assume that the Name column is nvarchar(40) and the SELECT statement returns this rowset:
T1.Id  T1.Name  T2.Id
-----------------------
1       Andrew    2
1       Andrew    3
1       Nancy     4
The AUTO mode heuristics compare all the values of table T1, the Id, and Name columns. The first two rows have the same values for the Id and Name columns. As a result, a single <T1> element, having two <T2> child elements, is added to the result.
Following is the XML that is returned:
<T1 Id="1" Name="Andrew">
    <T2 Id="2" />
    <T2 Id="3" />
</T1>
<T1 Id="1" Name="Nancy" >
      <T2 Id="4" />
</T>
Now assume that the Name column is of text type. The AUTO mode heuristics don't compare the values for this type. Instead, it assumes that the values aren't the same. This mode results in XML generation as shown in the following output:
<T1 Id="1" Name="Andrew" >
  <T2 Id="2" />
</T1>
<T1 Id="1" Name="Andrew" >
  <T2 Id="3" />
</T1>
<T1 Id="1" Name="Nancy" >
  <T2 Id="4" />
</T1>