Microsoft Copilot Studio

Copilot Studio is Microsoft's platform for building custom AI agents inside the Microsoft 365 and Power Platform world. It replaced Power Virtual Agents when it was announced in November 2023, and today combines agents, workflows and apps in one studio, built through a graphical, low-code editor or by describing what you want in natural language.

Agents can be conversational (chat or voice assistants that answer questions and guide people through a process) or autonomous (agents that run business processes, plan steps and escalate work items when they need a human). They connect to company data through Work IQ, more than 1,500 prebuilt connectors and MCP servers, can mix deterministic workflow automation with agentic reasoning in the same flow, and can hand tasks between multiple agents, including ones from partner providers. Model choice runs from the defaults to custom models and the catalogue in Azure AI Foundry.

Aimed at IT and business teams in larger organisations, it emphasises lifecycle and governance: automated evaluations instead of manual spot checks, Dev-Test-Prod pipelines with approval gates, real-time analytics, and security, data-loss and access controls managed from the Power Platform admin center. Finished agents publish to Microsoft 365 Copilot, Teams, SharePoint, websites and social channels. Billing is by Copilot Credits, either in prepaid packs of 25,000 credits for $200 per month or pay-as-you-go through Azure; using agents inside Microsoft 365 Copilot is included for users who hold that licence.