We’re in the agent era, according to Microsoft CEO Satya Nadella, who spoke about the tech giant’s vision of building an open ‘agentic web’ in his Microsoft Build keynote earlier this year.
We already know that Microsoft Copilot is reshaping how we work, helping us draft documents, summarize meetings, analyze data, and generally freeing us from repetitive tasks. But while Copilot is great at assisting, the real game-changer lies in what comes next.
We’re talking about acting, not just assisting, and that’s where AI agents come in.
Described by Microsoft’s Jared Spataro, Chief Marketing Office for AI at Work, as “the new apps for an AI-powered world”, agents can carry out complex, multi-step workflows on your behalf.
In this blog, we’ll break down what Microsoft AI agents are, where they live, and why IT leaders should start utilizing them today.
What Are Copilot AI Agents?
Microsoft Copilot agents are AI-driven, goal-oriented assistants that complete specific business tasks on behalf of users.
Kind of like customizable copilots, they don’t simply answer questions and offer suggestions, they:
- Understand your business context
- Retrieve and reason over internal data
- Trigger workflows and take actions
- Respond to natural language prompts
This is a huge shift from the more passive AI (just answering questions) we’ve seen so far, to active AI that automates, executes, and adapts.
Where Do Copilot Agents Live?
Microsoft Copilot Agents can operate in three main environments, each suited to different levels of complexity and use:
1. Copilot Chat (in Microsoft 365)
This is the simplest place to create and use agents. Accessible via Copilot Chat within Microsoft 365 apps (like Teams or Outlook) and Copilot Studio, these lightweight agents are often personal or department-specific.
Agent templates are available for a variety of use cases e.g. Idea Coach for brainstorming or Visual Creator for creating images and videos, but users can also create their own using the agent builder in Copilot Chat.
Benefits of agents in Copilot Chat:
- Simple to use (for end users as well as IT)
- Easy to access via @mention inside the Copilot chat pane
- Great for individual productivity boosts, personal content suggestions, repeatable advice
2. SharePoint
Now, every SharePoint site can host its own contextual Copilot agent. Accessible via SharePoint and Teams chat, SharePoint agents are grounded in site-specific content like HR policies or legal documentation and there’s no additional coding required, so end users can benefit, as well as IT.
Ideal for search and retrieval tasks like:
- Onboarding assistants
- Policy navigation bots
- Site-specific search agents (e.g. “What’s the latest brand guide?”)
SharePoint agents require a Microsoft 365 Copilot license or Copilot Studio consumption-based license.
3. Copilot Studio
Copilot Studio is the most advanced environment for building and deploying AI agents, aimed at IT pros.
Accessible to those with a Microsoft 365 Copilot license or a Copilot Studio license, these agents can carry out search and retrieval, as well as task-based and autonomous functions.
The key features are:
- Low-code/no-code interface
- Connect to Microsoft Graph, Power Automate, Dataverse, and external APIs
- Add memory, multi-turn conversation flows, and plug-ins
- Publish to Teams, websites, mobile, SMS, and more
Copilot Studio has a set of pre-built agents that can be preconfigured to speed up the process of building more complex agents. These include:
– Store Operations: Helps retail staff quickly access store procedures and policies to boost frontline efficiency.
– Sustainability Insights: Provides users with easy access to data on sustainability goals and progress.
– Awards and Recognition: Simplifies how employees are nominated and recognized for their contributions.
Laying the foundations for agent use
As with the adoption of any new technology, it’s vital for IT to do the groundwork up front. Check out our more recent blog on IT readiness. But for a quick reference, here’s some key considerations:
- Copilot Licensing: Ensure users and admins have the appropriate Microsoft 365 Copilot license.
- Extensibility Settings: Allow custom plugin use and agent creation in the Microsoft 365 admin center.
- Governed Content: Enforce content classification and permission boundaries in SharePoint and Teams.
- Microsoft 365 Copilot Connectors: Extend reach into third-party systems like Salesforce, ServiceNow, or Confluence.
Of course, agents can pose risks too. As powerful as they are, agents introduce new layers of complexity, especially around data access, workflow automation, and user trust.
Without the right controls, agents could surface content to the wrong users, trigger unauthorized actions or provide misleading information if data is out of date.
Microsoft’s Copilot Control System can mitigate these risks, allowing IT to manage permissions and audit usage.
Discover more about the Copilot Control System in Microsoft Director Jeremy Chapman’s YouTube video on agent management.
The Cloudwell team can support every stage of this process, from governance frameworks to data preparation and app integration.
Why agents matter for IT
Agents are more than just productivity hacks, they’re a game-changer for knowledge work, with IT at the center of that transformation. By automating common support tasks, agents can significantly reduce helpdesk volumes, freeing up valuable time.
They empower departments to build their own bots, tailored to the way they work, facilitating self-service without creating new dependencies on IT. Plus, with the right governance in place, agents help maintain control over data access and usage, ensuring AI tools remain secure and compliant.
And ultimately, they maximize the return on your Microsoft 365 and Copilot investments by turning AI automation into everyday business value.
Ready to get started?
Are you ready turn AI assistance into AI action? Whether you’re exploring SharePoint-based agents, planning a rollout via Copilot Studio, or just starting to assess your technical readiness, agents offer a practical way to scale impact across your organization.
Reach out to the Cloudwell team and we’ll help you unlock the full potential of Microsoft Copilot and make AI work for your business.