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Welcome to the M365 FM podcast,
where we explore the people,
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ideas and technologies shaping
the future of work.
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Why Copilot Studio feels
complicated.
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Before you start, you can build
a working AI agent without
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writing a single line of code.
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Copilot studio is Microsoft's
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workshop for that, a place where
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you describe the assistant you
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want and connect it to the
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documents and systems it should
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know about.
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It is not the copilot already
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sitting inside your word and
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outlook.
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And that mix up is where most of
the confusion starts.
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Welcome to the M365 FM podcast,
where we explore the people,
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00:00:28,239 --> 00:00:30,679
ideas, and technologies shaping
the future of work.
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Today we are looking at Copilot
Studio the way a beginner
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actually meets it, and by the
end you will know what it is,
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what it costs, and the design
mistake that sinks more first
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agents than anything else.
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Most people hear the name and
picture a developer hunched over
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code, and that picture is wrong.
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It is also the reason plenty of
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good people never open the tool
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twice.
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You click a link.
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You land on a page full of terms
you have never met, and you
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decide the whole thing sits
above your pay grade.
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It doesn't.
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And that gap between how it
looks and how it works is the
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thing I want to close for you.
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So stay with me for the next
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twenty minutes or so before we
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finish, you'll understand what
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an agent is, how one gets built,
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where it fits inside Microsoft's
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world, and the honest limits
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that never make it into the
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sales pitch.
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We'll start with the plain
version.
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What Copilot Studio actually is.
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Copilot studio is a low code
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studio from Microsoft for
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building and managing AI agents
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and workflows.
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Low code means you build with
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your mouse in plain language
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rather than a programming
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language, and the studio carries
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the technical machinery
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underneath.
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You drag things into place.
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You type what you want in
ordinary sentences, and you test
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the result as you go.
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The tool isn't brand new, which
explains a lot of the older
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videos you may have seen.
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Copilot studio grew out of
something called Power Virtual
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Agents, and Microsoft folded
that old bot builder into
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Copilot Studio before adding
generative AI on top.
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If you watched a Power Virtual
Agents tutorial a few years ago,
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you were looking at the same
idea with a different engine.
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Inside the studio, you can build
three kinds of things.
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An agent is an AI assistant that
holds a conversation and
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completes tasks on your behalf.
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A workflow is an automation you
assemble with a drag and drop
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designer with human checkpoints
built in so a person can approve
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the risky steps.
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An agent flow is the older
automation format close to Power
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Automate that now runs inside
Copilot Studio as well.
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Those pieces can call each other
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so a workflow can hand a job to
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an agent and wait for the
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answer.
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A small example makes this
concrete.
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Employees keep asking how many
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vacation days they have left,
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and the same person in human
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resources answers it all day
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long.
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An agent can read the policy and
the person's record and reply on
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its own at any hour without a
human retyping a word.
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What separates this from the
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older generation of bots is the
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AI underneath.
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An old bot matched keywords and
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fell apart the moment you phrase
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things differently.
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A modern agent understands the
intent behind the request,
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reasons about it, and pulls an
answer from the knowledge you
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connected, which is why it feels
less like a phone menu and more
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like a conversation.
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That is the surface of it,
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though, and the useful question
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is what actually sits inside an
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agent?
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The answer is simpler than the
name suggests, and it's where
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the next few minutes pay off.
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The pieces that make an agent
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work, every agent, however
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clever it looks on the outside,
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is built from a small set of
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parts.
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Learn these four and copilot
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studio stops feeling like a
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foreign language.
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Start with instructions.
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This is the job description you
write for the agent in ordinary
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sentences, the same way you
would brief a new colleague on
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their first morning.
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You say who the agent helps, how
it should sound, and what it
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must never do.
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Beginners either rush this part
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or panic over it and neither is
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needed.
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You don't want a perfect essay.
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You want a clear, specific
brief, the kind you would give a
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bright colleague who has never
worked in your department.
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Next comes knowledge.
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This is where the agent is
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allowed to read from, and you
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can point it at documents, a
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website, a SharePoint site, or a
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business system.
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The agent answers from those
sources.
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So the quality of its answer
depends on the quality of what
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you feed it.
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Thin or outdated documents
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produce thin or outdated answers
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every time.
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Then there are topics.
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A topic is one scripted
conversation you design in
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advance with steps, questions,
and conditions built into it.
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You reach for topics when you
can predict the question,
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because a topic gives the same
answer every single time.
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When a request falls outside
your topics, the agent can still
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generate a reply from the
sources you connected, so it's
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never truly stuck.
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The last piece is actions, which
people also call tools.
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This is what the agent can
actually do beyond talking.
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It can create a support ticket,
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send an email, look up an order,
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or update a record in your
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company's systems.
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An agent that only talks is a
chatbot, and an agent that acts
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is the one people actually want.
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Then there's the channel, which
is simply where the agent lives.
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You can publish it into teams
Microsoft copilot, SharePoint, a
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mobile app, a company website,
or even WhatsApp.
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So people meet it where they
already are.
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Picture a new hire on their
first day at work.
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You hand them a job description,
a stack of documents, a script
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for the common questions, and
permission to use a few systems.
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Everything they do afterward
comes from those four things,
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and nothing comes from magic.
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The parts are easy to supply,
which is exactly why the way you
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wire them together is where
beginners get into trouble.
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I'll show you that spot in a few
minutes.
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Building your first agent
without writing code.
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Building one is less dramatic
than people expect.
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You sign in at Copilot Studio,
Microsoft dot com, and you
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either start from a template or
describe the agent you want.
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In plain language, copilot
studio proposes the
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instructions, the knowledge, and
the tools for you, and then you
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refine the result by answering a
few follow up questions.
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From there, you connect the
knowledge.
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You aim the agent at the
documents or the site it should
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read, and you wait while
Microsoft indexes that content,
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which can take a little while on
a large library.
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While it works, you add a topic
or two for the questions you
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know are coming.
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You write the trigger phrases a
real person would type, so a
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password reset topic might
listen for I forgot my password,
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I'm locked out or my account
won't let me in.
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Then you lay out the response
step by step before you publish.
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You test.
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Every agent has a test chat
panel where you talk to it the
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way a user would, and you can
watch which topic fired and
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which knowledge it leaned on.
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Beginners skip this part, and
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it's the part that saves you
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because the flaws show up in the
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test long before a customer
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finds them.
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One detail catches people out.
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A trial license lets you build
and test, but it won't let you
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publish, so a weekend of work
can stall at the very last.
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Click check what your license
actually covers before you
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promise your team a live agent.
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Underneath all of this sits what
Microsoft calls a harness the
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engine that decides how much
your agent can reason.
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There are a few to choose from,
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running from simple and scripted
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to heavy and reasoning driven,
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and the choice changes both what
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your agent can do and what it
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costs.
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Microsoft is also rolling out a
way to build by describing the
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business goal and letting the
studio choose the pieces for
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you, though that part is still
marked as preview.
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A concrete example pulls this
together.
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An IT team builds an agent that
resets passwords and files
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tickets for the requests that
repeat, and it quietly takes the
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easy half of the queue.
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The humans keep the hard half
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and the day gets calmer for
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everyone.
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So what people actually use it
for the scenarios people build
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are surprisingly ordinary.
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And that's the point.
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An agent does its best work on a
task that repeats a thousand
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times and rarely needs a human
to think hard.
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Internal IT support is the
classic case.
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The agent takes the ticket,
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answers the password question,
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and routes anything messy to a
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person.
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Human resources uses it the same
way for the policy questions
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that would otherwise land in one
inbox every single day.
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Customer service teams put an
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agent on the website so people
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get an answer at two in the
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morning when no one is staffing
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the phone.
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Ordinary doesn't mean small,
though, because these agents
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work around the clock and never
take a lunch break.
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Onboarding is another popular
one.
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Someone who just started can ask
about benefits, tools, and the
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first week checklist at eleven
at night and hear back without
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waiting on whichever colleague
happens to be online.
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Then there are the bigger bills.
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Twenty four Hour Fitness created
an agent called flex to support
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two million members, letting it
handle the routine questions so
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staff can take the harder ones.
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Assyrian uses agents to push
invoice processing forward with
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far less human handling.
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Microsoft lists agents for
balance sheet reconciliation,
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recruitment, screening and
contract review, which are the
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document heavy jobs that used to
eat entire afternoons.
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The pattern never really
changes.
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You find the question or the
task that repeats.
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You check that it has a clear
answer, and you hand that slice
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to an agent.
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You keep the judgment and give
away the repetition.
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You don't need a grand project
to start either.
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The strongest first agent is
usually a narrow one built for a
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single team on a single topic,
where you can see within a week
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whether it actually helped.
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Microsoft says ninety percent of
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the fortune five hundred has
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used Copilot Studio, and that
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figure comes from Microsoft
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itself.
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So treat it as marketing rather
than an audited number.
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The number that matters to you
is smaller and closer to home.
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If your week holds one task you
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do over and over, that task is a
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candidate.
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How Copilot studio fits with
Microsoft.
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Three sixty five and Azure
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Copilot Studio lives inside the
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power platform.
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The same Microsoft family as
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Power Apps, Power Automate, and
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Power BI.
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That placement matters because
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your agent can reach the same
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00:08:18,329 --> 00:08:19,689
data and the same business
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systems those tools already
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touch.
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When you publish an agent, it
can show up inside Microsoft
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three hundred sixty five.
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It can appear in teams in
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SharePoint or inside Microsoft
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Copilot chat, so it meets people
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inside the tools they already
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00:08:31,050 --> 00:08:31,410
use.
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00:08:31,410 --> 00:08:32,889
The Azure side is mostly about
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billing and brains pay as you
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00:08:34,529 --> 00:08:34,730
go.
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00:08:34,730 --> 00:08:37,789
Usage runs through an Azure
subscription, and your agent can
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00:08:37,789 --> 00:08:40,850
borrow models from Azure AI
foundry when the default model
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00:08:40,850 --> 00:08:42,450
isn't the right fit for the job.
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00:08:42,450 --> 00:08:45,210
Copilot studio also reaches
outward through connectors, and
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00:08:45,210 --> 00:08:48,110
Microsoft lists more than a
thousand pre-built ones, plus
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00:08:48,110 --> 00:08:50,730
MCP servers, which are a
standard way to plug an agent
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00:08:50,730 --> 00:08:51,929
into another system.
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00:08:51,929 --> 00:08:53,370
That is how a simple chat window
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00:08:53,370 --> 00:08:54,870
ends up able to talk to a real
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business application.
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Now the comparison that clears
up the most confusion.
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Microsoft three.
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Sixty five copilot, which
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Microsoft now also calls
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Microsoft Copilot, is a finished
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assistant.
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00:09:03,649 --> 00:09:05,610
You use Inside Word, Outlook,
and Teams.
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00:09:05,610 --> 00:09:06,929
Copilot studio is the workshop
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00:09:06,929 --> 00:09:08,090
where you build assistance of
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00:09:08,090 --> 00:09:08,730
your own.
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One is the meal and the other is
the kitchen.
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Microsoft's own rule of thumb is
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worth remembering if your agent
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00:09:13,450 --> 00:09:14,850
faces customers, spans
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00:09:14,850 --> 00:09:16,409
departments, runs a complex
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00:09:16,409 --> 00:09:17,730
process, or needs governance and
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00:09:17,730 --> 00:09:18,970
audit trails, you build it in
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Copilot Studio.
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If it's a small internal helper
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that answers questions, the
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00:09:22,850 --> 00:09:24,169
lighter Agent Builder inside
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Microsoft three hundred sixty
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five copilot may be enough, and
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00:09:26,490 --> 00:09:27,610
you can move it into Copilot
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00:09:27,610 --> 00:09:29,169
Studio later if it outgrows
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00:09:29,169 --> 00:09:29,929
that.
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00:09:29,929 --> 00:09:32,289
A second comparison matters just
as much.
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00:09:32,289 --> 00:09:33,690
Power automate runs a fixed set
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00:09:33,690 --> 00:09:34,809
of steps the same way every
320
00:09:34,809 --> 00:09:36,289
time, like clockwork, while a
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00:09:36,289 --> 00:09:37,769
copilot studio agent decides
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00:09:37,769 --> 00:09:38,649
what to do based on the
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00:09:38,649 --> 00:09:40,370
conversation, most teams end up
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00:09:40,370 --> 00:09:41,929
using both with the agent making
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00:09:41,929 --> 00:09:43,129
the call and the flow doing the
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00:09:43,129 --> 00:09:44,169
reliable work.
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00:09:44,169 --> 00:09:46,210
There's also a governance layer,
and it matters more.
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00:09:46,210 --> 00:09:49,009
As agents multiply,
administrators can inventory
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00:09:49,009 --> 00:09:52,289
every agent, set usage limits,
and keep an experimental agent
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00:09:52,289 --> 00:09:55,490
away from a production system or
from one admin center.
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00:09:55,490 --> 00:09:58,490
That's the unglamorous half of
the story, and it's the half
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00:09:58,490 --> 00:10:01,210
that keeps a clever idea from
becoming a quiet risk.
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00:10:01,210 --> 00:10:01,570
For you.
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00:10:01,570 --> 00:10:02,970
It means Copilot Studio is a
335
00:10:02,970 --> 00:10:04,129
working skill, not a side
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00:10:04,129 --> 00:10:04,450
project.
337
00:10:04,450 --> 00:10:05,639
You learn for fun.
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00:10:05,639 --> 00:10:06,759
It plugs straight into the
339
00:10:06,759 --> 00:10:07,919
systems your company already
340
00:10:07,919 --> 00:10:09,360
runs.
341
00:10:09,360 --> 00:10:11,360
The mistakes beginners keep
making.
342
00:10:11,360 --> 00:10:13,480
Here is the design mistake I
promised you.
343
00:10:13,480 --> 00:10:16,039
Teams who audit copilot studio
agents keep finding the same
344
00:10:16,039 --> 00:10:18,840
problems in roughly the same
order, and the first one is by
345
00:10:18,840 --> 00:10:20,080
far the most common.
346
00:10:20,080 --> 00:10:23,320
Topics overlap when two topics
share similar trigger phrases.
347
00:10:23,320 --> 00:10:24,519
The agent can't tell which one
348
00:10:24,519 --> 00:10:25,879
should answer, and the result is
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00:10:25,879 --> 00:10:27,399
an agent that answers twice,
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00:10:27,399 --> 00:10:28,860
fires the wrong topic, or keeps
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00:10:28,860 --> 00:10:30,240
asking you to rephrase before it
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00:10:30,240 --> 00:10:31,200
will commit.
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00:10:31,200 --> 00:10:34,080
The fix is fewer and clearer
topics, each with a handful of
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00:10:34,080 --> 00:10:37,000
distinct phrases rather than
twenty near-identical ones.
355
00:10:37,000 --> 00:10:39,240
Mistake two is a fallback that
goes nowhere.
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00:10:39,240 --> 00:10:40,879
Copilot studio ships with a
357
00:10:40,879 --> 00:10:42,299
topic that asks the user to
358
00:10:42,299 --> 00:10:44,279
rephrase, and then a path called
359
00:10:44,279 --> 00:10:45,639
escalate, but escalate only
360
00:10:45,639 --> 00:10:47,320
reaches a human once you point
361
00:10:47,320 --> 00:10:48,720
it at a real queue or a
362
00:10:48,720 --> 00:10:49,840
ticketing system.
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00:10:49,840 --> 00:10:53,080
Left untouched, it simply tells
people that nobody is available.
364
00:10:53,080 --> 00:10:54,679
The third trap is dumping in
knowledge.
365
00:10:54,679 --> 00:10:57,200
The instinct is to connect an
entire SharePoint site or a
366
00:10:57,200 --> 00:10:59,919
shared drive and hope for the
best, which produces an agent
367
00:10:59,919 --> 00:11:01,440
that sites the wrong document.
368
00:11:01,440 --> 00:11:04,519
It can also fail silently on any
file marked confidential or
369
00:11:04,519 --> 00:11:07,519
password protected, because
those files show as ready and
370
00:11:07,519 --> 00:11:08,519
then never answer.
371
00:11:08,519 --> 00:11:10,759
Then there's deciding
authentication late, whether
372
00:11:10,759 --> 00:11:12,000
people sign in and how.
373
00:11:12,000 --> 00:11:14,840
Decides which channels your
agent can even reach, and
374
00:11:14,840 --> 00:11:17,720
changing that decision after the
topics are built breaks them.
375
00:11:17,720 --> 00:11:19,080
Decide at first, then build.
376
00:11:19,080 --> 00:11:21,039
The fifth is never reading the
numbers.
377
00:11:21,039 --> 00:11:22,799
Copilot studio tracks resolution
378
00:11:22,799 --> 00:11:24,039
rate, escalation rate and
379
00:11:24,039 --> 00:11:25,700
abandon rate, and most agents
380
00:11:25,700 --> 00:11:26,980
never have those numbers opened
381
00:11:26,980 --> 00:11:28,000
after launch.
382
00:11:28,000 --> 00:11:29,240
A monthly look tells you which
383
00:11:29,240 --> 00:11:30,559
topic needs work and which one
384
00:11:30,559 --> 00:11:31,639
needs retiring.
385
00:11:31,639 --> 00:11:33,120
The last one is having no owner.
386
00:11:33,120 --> 00:11:34,559
When nobody is accountable, the
387
00:11:34,559 --> 00:11:35,879
agent runs on stale answers
388
00:11:35,879 --> 00:11:37,480
until someone complains, and by
389
00:11:37,480 --> 00:11:38,440
then people have stopped
390
00:11:38,440 --> 00:11:39,200
trusting it.
391
00:11:39,200 --> 00:11:40,720
Name one person before you ship
392
00:11:40,720 --> 00:11:42,159
it with the job of keeping it
393
00:11:42,159 --> 00:11:42,759
honest.
394
00:11:42,759 --> 00:11:44,080
None of these are code problems.
395
00:11:44,080 --> 00:11:46,720
Every single one is a design
problem, which means everyone is
396
00:11:46,720 --> 00:11:49,000
something a beginner can get
right on purpose.
397
00:11:49,000 --> 00:11:50,919
The limits you should know
before you start.
398
00:11:50,919 --> 00:11:54,240
Mistakes you can fix, but limits
you have to design around.
399
00:11:54,240 --> 00:11:57,000
And a few of them matter a great
deal for a beginner.
400
00:11:57,000 --> 00:11:58,519
As you plan your first agent,
401
00:11:58,519 --> 00:11:59,840
check which of these edges your
402
00:11:59,840 --> 00:12:01,279
idea touches because the answer
403
00:12:01,279 --> 00:12:01,720
changes.
404
00:12:01,720 --> 00:12:03,080
The whole design cost is the
405
00:12:03,080 --> 00:12:04,259
first one, and it catches people
406
00:12:04,259 --> 00:12:04,879
off guard.
407
00:12:04,879 --> 00:12:07,960
Copilot studio runs on copilot
credits and different actions
408
00:12:07,960 --> 00:12:09,200
burn different amounts.
409
00:12:09,200 --> 00:12:11,639
A simple scripted answer costs
one credit.
410
00:12:11,639 --> 00:12:14,960
A generated answer costs two,
and a heavy reasoning response
411
00:12:14,960 --> 00:12:16,480
can cost one hundred or more.
412
00:12:16,480 --> 00:12:19,399
The same agent can be cheap or
expensive, depending only on how
413
00:12:19,399 --> 00:12:20,159
you built it.
414
00:12:20,159 --> 00:12:23,360
The cheapest way to start is the
path many companies already own.
415
00:12:23,360 --> 00:12:25,559
If your organization pays for
Microsoft three hundred sixty
416
00:12:25,559 --> 00:12:28,559
five copilot, internal answers
for licensed employees often
417
00:12:28,559 --> 00:12:31,480
don't burn credits at all, which
makes an internal helper agent
418
00:12:31,480 --> 00:12:32,759
close to free to run.
419
00:12:32,759 --> 00:12:35,600
Start there and save the paid
credits for the agents that face
420
00:12:35,600 --> 00:12:36,600
the outside world.
421
00:12:36,600 --> 00:12:38,639
Watch the capacity rules as
well.
422
00:12:38,639 --> 00:12:40,960
Unused credits don't roll over
into the next month, and if you
423
00:12:40,960 --> 00:12:43,539
run past your purchased
capacity, the agent can switch
424
00:12:43,539 --> 00:12:46,240
off until someone adds more for
a customer facing agent.
425
00:12:46,240 --> 00:12:48,799
That's the difference between a
busy day and a dark one.
426
00:12:48,799 --> 00:12:50,679
Then come the hard technical
limits.
427
00:12:50,679 --> 00:12:52,720
A single model response has a
five minute cap.
428
00:12:52,720 --> 00:12:55,679
Confidential or password
protected documents get skipped
429
00:12:55,679 --> 00:12:56,840
without an error.
430
00:12:56,840 --> 00:12:58,039
Agents can't write and run their
431
00:12:58,039 --> 00:13:00,120
own code, so heavy analysis over
432
00:13:00,120 --> 00:13:01,220
a big spreadsheet may not go
433
00:13:01,220 --> 00:13:01,519
well.
434
00:13:01,519 --> 00:13:04,759
Microsoft also states plainly
that Copilot Studio isn't a
435
00:13:04,759 --> 00:13:06,674
medical device, that it
shouldn't be used for
436
00:13:06,674 --> 00:13:09,830
emergencies, and that any agent
you build is your own product
437
00:13:09,830 --> 00:13:11,309
with your name on the result.
438
00:13:11,309 --> 00:13:12,990
A final limit is easy to miss.
439
00:13:12,990 --> 00:13:15,909
Copilot studio supports a long
list of languages from English
440
00:13:15,909 --> 00:13:18,950
and Spanish to Japanese and
Hindi, so one agent can serve a
441
00:13:18,950 --> 00:13:21,590
multilingual team, but it will
only be as current as the
442
00:13:21,590 --> 00:13:23,230
content you keep feeding it.
443
00:13:23,230 --> 00:13:24,950
An agent left alone drifts.
444
00:13:24,950 --> 00:13:26,230
None of that should scare you
off.
445
00:13:26,230 --> 00:13:28,909
It should tell you where the
edges are so your first agent
446
00:13:28,909 --> 00:13:30,830
lives safely inside them.
447
00:13:30,830 --> 00:13:32,990
A short recap and one question
for you.
448
00:13:32,990 --> 00:13:34,909
So the short version goes like
this.
449
00:13:34,909 --> 00:13:38,289
Copilot Studio is Microsoft's
low code workshop for building
450
00:13:38,289 --> 00:13:40,750
AI agents that answer questions
and take action.
451
00:13:40,750 --> 00:13:42,149
It grew out of power virtual
agents.
452
00:13:42,149 --> 00:13:44,590
It sits inside the power
platform, and it publishes into
453
00:13:44,590 --> 00:13:47,269
teams, websites and the tools
your team already uses.
454
00:13:47,269 --> 00:13:50,070
It isn't the copilot inside your
word documents, and the real
455
00:13:50,070 --> 00:13:52,190
skill is design, not code.
456
00:13:52,190 --> 00:13:54,230
Now, one question for you, and I
want you to answer it in your
457
00:13:54,230 --> 00:13:55,750
head before you click away.
458
00:13:55,750 --> 00:13:59,230
What is the one task in your job
that you repeat every week and
459
00:13:59,230 --> 00:14:02,230
would happily hand to an agent
first, if this made the topic
460
00:14:02,230 --> 00:14:03,429
feel less intimidating?
461
00:14:03,429 --> 00:14:05,149
Subscribe to M365 FM.
462
00:14:05,149 --> 00:14:06,110
To master the tools and the
463
00:14:06,110 --> 00:14:07,629
mindset shaping the future of
464
00:14:07,629 --> 00:14:08,230
work.
00:00:00,040 --> 00:00:03,319
Welcome to the M365 FM podcast,
where we explore the people,
2
00:00:03,319 --> 00:00:05,759
ideas and technologies shaping
the future of work.
3
00:00:05,759 --> 00:00:07,639
Why Copilot Studio feels
complicated.
4
00:00:07,639 --> 00:00:10,439
Before you start, you can build
a working AI agent without
5
00:00:10,439 --> 00:00:11,759
writing a single line of code.
6
00:00:11,759 --> 00:00:13,220
Copilot studio is Microsoft's
7
00:00:13,220 --> 00:00:14,640
workshop for that, a place where
8
00:00:14,640 --> 00:00:16,039
you describe the assistant you
9
00:00:16,039 --> 00:00:17,239
want and connect it to the
10
00:00:17,239 --> 00:00:18,600
documents and systems it should
11
00:00:18,600 --> 00:00:19,399
know about.
12
00:00:19,399 --> 00:00:20,920
It is not the copilot already
13
00:00:20,920 --> 00:00:21,920
sitting inside your word and
14
00:00:21,920 --> 00:00:22,559
outlook.
15
00:00:22,559 --> 00:00:24,879
And that mix up is where most of
the confusion starts.
16
00:00:24,879 --> 00:00:28,239
Welcome to the M365 FM podcast,
where we explore the people,
17
00:00:28,239 --> 00:00:30,679
ideas, and technologies shaping
the future of work.
18
00:00:30,679 --> 00:00:33,240
Today we are looking at Copilot
Studio the way a beginner
19
00:00:33,240 --> 00:00:36,119
actually meets it, and by the
end you will know what it is,
20
00:00:36,119 --> 00:00:39,359
what it costs, and the design
mistake that sinks more first
21
00:00:39,359 --> 00:00:40,920
agents than anything else.
22
00:00:40,920 --> 00:00:43,579
Most people hear the name and
picture a developer hunched over
23
00:00:43,579 --> 00:00:45,399
code, and that picture is wrong.
24
00:00:45,399 --> 00:00:46,799
It is also the reason plenty of
25
00:00:46,799 --> 00:00:48,320
good people never open the tool
26
00:00:48,320 --> 00:00:49,079
twice.
27
00:00:49,079 --> 00:00:50,039
You click a link.
28
00:00:50,039 --> 00:00:52,920
You land on a page full of terms
you have never met, and you
29
00:00:52,920 --> 00:00:55,159
decide the whole thing sits
above your pay grade.
30
00:00:55,159 --> 00:00:55,640
It doesn't.
31
00:00:55,640 --> 00:00:58,280
And that gap between how it
looks and how it works is the
32
00:00:58,280 --> 00:00:59,439
thing I want to close for you.
33
00:00:59,439 --> 00:01:00,679
So stay with me for the next
34
00:01:00,679 --> 00:01:02,439
twenty minutes or so before we
35
00:01:02,439 --> 00:01:03,479
finish, you'll understand what
36
00:01:03,479 --> 00:01:05,439
an agent is, how one gets built,
37
00:01:05,439 --> 00:01:06,840
where it fits inside Microsoft's
38
00:01:06,840 --> 00:01:08,280
world, and the honest limits
39
00:01:08,280 --> 00:01:09,319
that never make it into the
40
00:01:09,319 --> 00:01:10,040
sales pitch.
41
00:01:10,040 --> 00:01:11,760
We'll start with the plain
version.
42
00:01:11,760 --> 00:01:13,840
What Copilot Studio actually is.
43
00:01:13,840 --> 00:01:15,719
Copilot studio is a low code
44
00:01:15,719 --> 00:01:17,239
studio from Microsoft for
45
00:01:17,239 --> 00:01:18,920
building and managing AI agents
46
00:01:18,920 --> 00:01:19,799
and workflows.
47
00:01:19,799 --> 00:01:21,239
Low code means you build with
48
00:01:21,239 --> 00:01:22,519
your mouse in plain language
49
00:01:22,519 --> 00:01:23,480
rather than a programming
50
00:01:23,480 --> 00:01:25,040
language, and the studio carries
51
00:01:25,040 --> 00:01:26,000
the technical machinery
52
00:01:26,000 --> 00:01:26,760
underneath.
53
00:01:26,760 --> 00:01:28,280
You drag things into place.
54
00:01:28,280 --> 00:01:31,159
You type what you want in
ordinary sentences, and you test
55
00:01:31,159 --> 00:01:33,200
the result as you go.
56
00:01:33,200 --> 00:01:35,519
The tool isn't brand new, which
explains a lot of the older
57
00:01:35,519 --> 00:01:37,319
videos you may have seen.
58
00:01:37,319 --> 00:01:40,120
Copilot studio grew out of
something called Power Virtual
59
00:01:40,120 --> 00:01:43,359
Agents, and Microsoft folded
that old bot builder into
60
00:01:43,359 --> 00:01:46,719
Copilot Studio before adding
generative AI on top.
61
00:01:46,719 --> 00:01:49,939
If you watched a Power Virtual
Agents tutorial a few years ago,
62
00:01:49,939 --> 00:01:52,519
you were looking at the same
idea with a different engine.
63
00:01:52,519 --> 00:01:55,000
Inside the studio, you can build
three kinds of things.
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An agent is an AI assistant that
holds a conversation and
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completes tasks on your behalf.
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A workflow is an automation you
assemble with a drag and drop
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designer with human checkpoints
built in so a person can approve
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the risky steps.
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An agent flow is the older
automation format close to Power
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Automate that now runs inside
Copilot Studio as well.
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Those pieces can call each other
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so a workflow can hand a job to
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an agent and wait for the
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answer.
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A small example makes this
concrete.
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Employees keep asking how many
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vacation days they have left,
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and the same person in human
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resources answers it all day
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long.
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An agent can read the policy and
the person's record and reply on
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its own at any hour without a
human retyping a word.
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What separates this from the
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older generation of bots is the
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AI underneath.
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An old bot matched keywords and
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fell apart the moment you phrase
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things differently.
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A modern agent understands the
intent behind the request,
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reasons about it, and pulls an
answer from the knowledge you
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connected, which is why it feels
less like a phone menu and more
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like a conversation.
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That is the surface of it,
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though, and the useful question
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is what actually sits inside an
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agent?
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The answer is simpler than the
name suggests, and it's where
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the next few minutes pay off.
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The pieces that make an agent
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work, every agent, however
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clever it looks on the outside,
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is built from a small set of
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parts.
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Learn these four and copilot
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studio stops feeling like a
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foreign language.
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Start with instructions.
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This is the job description you
write for the agent in ordinary
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sentences, the same way you
would brief a new colleague on
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their first morning.
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You say who the agent helps, how
it should sound, and what it
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must never do.
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Beginners either rush this part
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or panic over it and neither is
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needed.
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You don't want a perfect essay.
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You want a clear, specific
brief, the kind you would give a
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bright colleague who has never
worked in your department.
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Next comes knowledge.
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This is where the agent is
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allowed to read from, and you
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can point it at documents, a
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website, a SharePoint site, or a
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business system.
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The agent answers from those
sources.
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So the quality of its answer
depends on the quality of what
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you feed it.
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Thin or outdated documents
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produce thin or outdated answers
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every time.
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Then there are topics.
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A topic is one scripted
conversation you design in
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advance with steps, questions,
and conditions built into it.
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You reach for topics when you
can predict the question,
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because a topic gives the same
answer every single time.
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When a request falls outside
your topics, the agent can still
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generate a reply from the
sources you connected, so it's
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never truly stuck.
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The last piece is actions, which
people also call tools.
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This is what the agent can
actually do beyond talking.
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It can create a support ticket,
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send an email, look up an order,
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or update a record in your
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company's systems.
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An agent that only talks is a
chatbot, and an agent that acts
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is the one people actually want.
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Then there's the channel, which
is simply where the agent lives.
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You can publish it into teams
Microsoft copilot, SharePoint, a
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mobile app, a company website,
or even WhatsApp.
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So people meet it where they
already are.
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Picture a new hire on their
first day at work.
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You hand them a job description,
a stack of documents, a script
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for the common questions, and
permission to use a few systems.
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Everything they do afterward
comes from those four things,
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and nothing comes from magic.
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The parts are easy to supply,
which is exactly why the way you
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wire them together is where
beginners get into trouble.
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I'll show you that spot in a few
minutes.
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Building your first agent
without writing code.
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Building one is less dramatic
than people expect.
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You sign in at Copilot Studio,
Microsoft dot com, and you
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either start from a template or
describe the agent you want.
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In plain language, copilot
studio proposes the
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instructions, the knowledge, and
the tools for you, and then you
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refine the result by answering a
few follow up questions.
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From there, you connect the
knowledge.
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You aim the agent at the
documents or the site it should
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read, and you wait while
Microsoft indexes that content,
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which can take a little while on
a large library.
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While it works, you add a topic
or two for the questions you
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know are coming.
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You write the trigger phrases a
real person would type, so a
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password reset topic might
listen for I forgot my password,
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I'm locked out or my account
won't let me in.
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Then you lay out the response
step by step before you publish.
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You test.
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Every agent has a test chat
panel where you talk to it the
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way a user would, and you can
watch which topic fired and
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which knowledge it leaned on.
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Beginners skip this part, and
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it's the part that saves you
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because the flaws show up in the
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test long before a customer
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finds them.
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One detail catches people out.
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A trial license lets you build
and test, but it won't let you
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publish, so a weekend of work
can stall at the very last.
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Click check what your license
actually covers before you
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promise your team a live agent.
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Underneath all of this sits what
Microsoft calls a harness the
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engine that decides how much
your agent can reason.
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There are a few to choose from,
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running from simple and scripted
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to heavy and reasoning driven,
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and the choice changes both what
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your agent can do and what it
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costs.
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Microsoft is also rolling out a
way to build by describing the
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business goal and letting the
studio choose the pieces for
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you, though that part is still
marked as preview.
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A concrete example pulls this
together.
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An IT team builds an agent that
resets passwords and files
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tickets for the requests that
repeat, and it quietly takes the
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easy half of the queue.
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The humans keep the hard half
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and the day gets calmer for
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everyone.
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So what people actually use it
for the scenarios people build
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are surprisingly ordinary.
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And that's the point.
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An agent does its best work on a
task that repeats a thousand
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times and rarely needs a human
to think hard.
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Internal IT support is the
classic case.
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The agent takes the ticket,
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answers the password question,
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and routes anything messy to a
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person.
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Human resources uses it the same
way for the policy questions
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that would otherwise land in one
inbox every single day.
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Customer service teams put an
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agent on the website so people
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get an answer at two in the
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morning when no one is staffing
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the phone.
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Ordinary doesn't mean small,
though, because these agents
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work around the clock and never
take a lunch break.
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Onboarding is another popular
one.
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Someone who just started can ask
about benefits, tools, and the
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first week checklist at eleven
at night and hear back without
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waiting on whichever colleague
happens to be online.
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Then there are the bigger bills.
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Twenty four Hour Fitness created
an agent called flex to support
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two million members, letting it
handle the routine questions so
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staff can take the harder ones.
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Assyrian uses agents to push
invoice processing forward with
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far less human handling.
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Microsoft lists agents for
balance sheet reconciliation,
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recruitment, screening and
contract review, which are the
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00:07:27,579 --> 00:07:30,579
document heavy jobs that used to
eat entire afternoons.
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The pattern never really
changes.
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You find the question or the
task that repeats.
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You check that it has a clear
answer, and you hand that slice
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to an agent.
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You keep the judgment and give
away the repetition.
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You don't need a grand project
to start either.
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The strongest first agent is
usually a narrow one built for a
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single team on a single topic,
where you can see within a week
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whether it actually helped.
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Microsoft says ninety percent of
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the fortune five hundred has
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used Copilot Studio, and that
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figure comes from Microsoft
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itself.
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So treat it as marketing rather
than an audited number.
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The number that matters to you
is smaller and closer to home.
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If your week holds one task you
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do over and over, that task is a
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candidate.
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How Copilot studio fits with
Microsoft.
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Three sixty five and Azure
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Copilot Studio lives inside the
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power platform.
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The same Microsoft family as
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Power Apps, Power Automate, and
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Power BI.
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That placement matters because
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your agent can reach the same
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data and the same business
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systems those tools already
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touch.
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When you publish an agent, it
can show up inside Microsoft
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three hundred sixty five.
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It can appear in teams in
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SharePoint or inside Microsoft
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Copilot chat, so it meets people
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inside the tools they already
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use.
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The Azure side is mostly about
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billing and brains pay as you
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go.
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00:08:34,730 --> 00:08:37,789
Usage runs through an Azure
subscription, and your agent can
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borrow models from Azure AI
foundry when the default model
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isn't the right fit for the job.
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Copilot studio also reaches
outward through connectors, and
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Microsoft lists more than a
thousand pre-built ones, plus
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MCP servers, which are a
standard way to plug an agent
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into another system.
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That is how a simple chat window
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ends up able to talk to a real
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business application.
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Now the comparison that clears
up the most confusion.
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Microsoft three.
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Sixty five copilot, which
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Microsoft now also calls
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Microsoft Copilot, is a finished
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00:09:03,210 --> 00:09:03,649
assistant.
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00:09:03,649 --> 00:09:05,610
You use Inside Word, Outlook,
and Teams.
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Copilot studio is the workshop
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where you build assistance of
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your own.
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One is the meal and the other is
the kitchen.
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Microsoft's own rule of thumb is
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worth remembering if your agent
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faces customers, spans
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departments, runs a complex
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process, or needs governance and
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audit trails, you build it in
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Copilot Studio.
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If it's a small internal helper
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that answers questions, the
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lighter Agent Builder inside
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Microsoft three hundred sixty
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five copilot may be enough, and
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you can move it into Copilot
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Studio later if it outgrows
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00:09:29,169 --> 00:09:29,929
that.
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00:09:29,929 --> 00:09:32,289
A second comparison matters just
as much.
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00:09:32,289 --> 00:09:33,690
Power automate runs a fixed set
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00:09:33,690 --> 00:09:34,809
of steps the same way every
320
00:09:34,809 --> 00:09:36,289
time, like clockwork, while a
321
00:09:36,289 --> 00:09:37,769
copilot studio agent decides
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what to do based on the
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conversation, most teams end up
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using both with the agent making
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the call and the flow doing the
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reliable work.
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00:09:44,169 --> 00:09:46,210
There's also a governance layer,
and it matters more.
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00:09:46,210 --> 00:09:49,009
As agents multiply,
administrators can inventory
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00:09:49,009 --> 00:09:52,289
every agent, set usage limits,
and keep an experimental agent
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away from a production system or
from one admin center.
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00:09:55,490 --> 00:09:58,490
That's the unglamorous half of
the story, and it's the half
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00:09:58,490 --> 00:10:01,210
that keeps a clever idea from
becoming a quiet risk.
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For you.
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00:10:01,570 --> 00:10:02,970
It means Copilot Studio is a
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00:10:02,970 --> 00:10:04,129
working skill, not a side
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00:10:04,129 --> 00:10:04,450
project.
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You learn for fun.
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It plugs straight into the
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00:10:06,759 --> 00:10:07,919
systems your company already
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00:10:07,919 --> 00:10:09,360
runs.
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00:10:09,360 --> 00:10:11,360
The mistakes beginners keep
making.
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00:10:11,360 --> 00:10:13,480
Here is the design mistake I
promised you.
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Teams who audit copilot studio
agents keep finding the same
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00:10:16,039 --> 00:10:18,840
problems in roughly the same
order, and the first one is by
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00:10:18,840 --> 00:10:20,080
far the most common.
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00:10:20,080 --> 00:10:23,320
Topics overlap when two topics
share similar trigger phrases.
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00:10:23,320 --> 00:10:24,519
The agent can't tell which one
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00:10:24,519 --> 00:10:25,879
should answer, and the result is
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00:10:25,879 --> 00:10:27,399
an agent that answers twice,
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00:10:27,399 --> 00:10:28,860
fires the wrong topic, or keeps
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00:10:28,860 --> 00:10:30,240
asking you to rephrase before it
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00:10:30,240 --> 00:10:31,200
will commit.
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00:10:31,200 --> 00:10:34,080
The fix is fewer and clearer
topics, each with a handful of
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00:10:34,080 --> 00:10:37,000
distinct phrases rather than
twenty near-identical ones.
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00:10:37,000 --> 00:10:39,240
Mistake two is a fallback that
goes nowhere.
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00:10:39,240 --> 00:10:40,879
Copilot studio ships with a
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00:10:40,879 --> 00:10:42,299
topic that asks the user to
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00:10:42,299 --> 00:10:44,279
rephrase, and then a path called
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00:10:44,279 --> 00:10:45,639
escalate, but escalate only
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00:10:45,639 --> 00:10:47,320
reaches a human once you point
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00:10:47,320 --> 00:10:48,720
it at a real queue or a
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00:10:48,720 --> 00:10:49,840
ticketing system.
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00:10:49,840 --> 00:10:53,080
Left untouched, it simply tells
people that nobody is available.
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00:10:53,080 --> 00:10:54,679
The third trap is dumping in
knowledge.
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00:10:54,679 --> 00:10:57,200
The instinct is to connect an
entire SharePoint site or a
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00:10:57,200 --> 00:10:59,919
shared drive and hope for the
best, which produces an agent
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00:10:59,919 --> 00:11:01,440
that sites the wrong document.
368
00:11:01,440 --> 00:11:04,519
It can also fail silently on any
file marked confidential or
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00:11:04,519 --> 00:11:07,519
password protected, because
those files show as ready and
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00:11:07,519 --> 00:11:08,519
then never answer.
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00:11:08,519 --> 00:11:10,759
Then there's deciding
authentication late, whether
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00:11:10,759 --> 00:11:12,000
people sign in and how.
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00:11:12,000 --> 00:11:14,840
Decides which channels your
agent can even reach, and
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00:11:14,840 --> 00:11:17,720
changing that decision after the
topics are built breaks them.
375
00:11:17,720 --> 00:11:19,080
Decide at first, then build.
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00:11:19,080 --> 00:11:21,039
The fifth is never reading the
numbers.
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00:11:21,039 --> 00:11:22,799
Copilot studio tracks resolution
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00:11:22,799 --> 00:11:24,039
rate, escalation rate and
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00:11:24,039 --> 00:11:25,700
abandon rate, and most agents
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00:11:25,700 --> 00:11:26,980
never have those numbers opened
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00:11:26,980 --> 00:11:28,000
after launch.
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00:11:28,000 --> 00:11:29,240
A monthly look tells you which
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00:11:29,240 --> 00:11:30,559
topic needs work and which one
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00:11:30,559 --> 00:11:31,639
needs retiring.
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00:11:31,639 --> 00:11:33,120
The last one is having no owner.
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00:11:33,120 --> 00:11:34,559
When nobody is accountable, the
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00:11:34,559 --> 00:11:35,879
agent runs on stale answers
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00:11:35,879 --> 00:11:37,480
until someone complains, and by
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00:11:37,480 --> 00:11:38,440
then people have stopped
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00:11:38,440 --> 00:11:39,200
trusting it.
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00:11:39,200 --> 00:11:40,720
Name one person before you ship
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00:11:40,720 --> 00:11:42,159
it with the job of keeping it
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00:11:42,159 --> 00:11:42,759
honest.
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00:11:42,759 --> 00:11:44,080
None of these are code problems.
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00:11:44,080 --> 00:11:46,720
Every single one is a design
problem, which means everyone is
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00:11:46,720 --> 00:11:49,000
something a beginner can get
right on purpose.
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00:11:49,000 --> 00:11:50,919
The limits you should know
before you start.
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00:11:50,919 --> 00:11:54,240
Mistakes you can fix, but limits
you have to design around.
399
00:11:54,240 --> 00:11:57,000
And a few of them matter a great
deal for a beginner.
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00:11:57,000 --> 00:11:58,519
As you plan your first agent,
401
00:11:58,519 --> 00:11:59,840
check which of these edges your
402
00:11:59,840 --> 00:12:01,279
idea touches because the answer
403
00:12:01,279 --> 00:12:01,720
changes.
404
00:12:01,720 --> 00:12:03,080
The whole design cost is the
405
00:12:03,080 --> 00:12:04,259
first one, and it catches people
406
00:12:04,259 --> 00:12:04,879
off guard.
407
00:12:04,879 --> 00:12:07,960
Copilot studio runs on copilot
credits and different actions
408
00:12:07,960 --> 00:12:09,200
burn different amounts.
409
00:12:09,200 --> 00:12:11,639
A simple scripted answer costs
one credit.
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00:12:11,639 --> 00:12:14,960
A generated answer costs two,
and a heavy reasoning response
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00:12:14,960 --> 00:12:16,480
can cost one hundred or more.
412
00:12:16,480 --> 00:12:19,399
The same agent can be cheap or
expensive, depending only on how
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00:12:19,399 --> 00:12:20,159
you built it.
414
00:12:20,159 --> 00:12:23,360
The cheapest way to start is the
path many companies already own.
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00:12:23,360 --> 00:12:25,559
If your organization pays for
Microsoft three hundred sixty
416
00:12:25,559 --> 00:12:28,559
five copilot, internal answers
for licensed employees often
417
00:12:28,559 --> 00:12:31,480
don't burn credits at all, which
makes an internal helper agent
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00:12:31,480 --> 00:12:32,759
close to free to run.
419
00:12:32,759 --> 00:12:35,600
Start there and save the paid
credits for the agents that face
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00:12:35,600 --> 00:12:36,600
the outside world.
421
00:12:36,600 --> 00:12:38,639
Watch the capacity rules as
well.
422
00:12:38,639 --> 00:12:40,960
Unused credits don't roll over
into the next month, and if you
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00:12:40,960 --> 00:12:43,539
run past your purchased
capacity, the agent can switch
424
00:12:43,539 --> 00:12:46,240
off until someone adds more for
a customer facing agent.
425
00:12:46,240 --> 00:12:48,799
That's the difference between a
busy day and a dark one.
426
00:12:48,799 --> 00:12:50,679
Then come the hard technical
limits.
427
00:12:50,679 --> 00:12:52,720
A single model response has a
five minute cap.
428
00:12:52,720 --> 00:12:55,679
Confidential or password
protected documents get skipped
429
00:12:55,679 --> 00:12:56,840
without an error.
430
00:12:56,840 --> 00:12:58,039
Agents can't write and run their
431
00:12:58,039 --> 00:13:00,120
own code, so heavy analysis over
432
00:13:00,120 --> 00:13:01,220
a big spreadsheet may not go
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00:13:01,220 --> 00:13:01,519
well.
434
00:13:01,519 --> 00:13:04,759
Microsoft also states plainly
that Copilot Studio isn't a
435
00:13:04,759 --> 00:13:06,674
medical device, that it
shouldn't be used for
436
00:13:06,674 --> 00:13:09,830
emergencies, and that any agent
you build is your own product
437
00:13:09,830 --> 00:13:11,309
with your name on the result.
438
00:13:11,309 --> 00:13:12,990
A final limit is easy to miss.
439
00:13:12,990 --> 00:13:15,909
Copilot studio supports a long
list of languages from English
440
00:13:15,909 --> 00:13:18,950
and Spanish to Japanese and
Hindi, so one agent can serve a
441
00:13:18,950 --> 00:13:21,590
multilingual team, but it will
only be as current as the
442
00:13:21,590 --> 00:13:23,230
content you keep feeding it.
443
00:13:23,230 --> 00:13:24,950
An agent left alone drifts.
444
00:13:24,950 --> 00:13:26,230
None of that should scare you
off.
445
00:13:26,230 --> 00:13:28,909
It should tell you where the
edges are so your first agent
446
00:13:28,909 --> 00:13:30,830
lives safely inside them.
447
00:13:30,830 --> 00:13:32,990
A short recap and one question
for you.
448
00:13:32,990 --> 00:13:34,909
So the short version goes like
this.
449
00:13:34,909 --> 00:13:38,289
Copilot Studio is Microsoft's
low code workshop for building
450
00:13:38,289 --> 00:13:40,750
AI agents that answer questions
and take action.
451
00:13:40,750 --> 00:13:42,149
It grew out of power virtual
agents.
452
00:13:42,149 --> 00:13:44,590
It sits inside the power
platform, and it publishes into
453
00:13:44,590 --> 00:13:47,269
teams, websites and the tools
your team already uses.
454
00:13:47,269 --> 00:13:50,070
It isn't the copilot inside your
word documents, and the real
455
00:13:50,070 --> 00:13:52,190
skill is design, not code.
456
00:13:52,190 --> 00:13:54,230
Now, one question for you, and I
want you to answer it in your
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00:13:54,230 --> 00:13:55,750
head before you click away.
458
00:13:55,750 --> 00:13:59,230
What is the one task in your job
that you repeat every week and
459
00:13:59,230 --> 00:14:02,230
would happily hand to an agent
first, if this made the topic
460
00:14:02,230 --> 00:14:03,429
feel less intimidating?
461
00:14:03,429 --> 00:14:05,149
Subscribe to M365 FM.
462
00:14:05,149 --> 00:14:06,110
To master the tools and the
463
00:14:06,110 --> 00:14:07,629
mindset shaping the future of
464
00:14:07,629 --> 00:14:08,230
work.
