Quick Summary
- Learn what Microsoft Copilot Studio is and how it differs from Microsoft 365 Copilot.
- Understand how businesses use AI agents to answer questions, automate tasks and connect systems.
- Explore common Copilot Studio use cases across HR, IT support, customer service and operations.
- Learn how Copilot Studio connects to SharePoint, Teams, business applications and workflows.
- Understand licensing considerations, implementation costs and governance requirements.
- Discover when Copilot Studio is the right solution and when simpler alternatives may be more effective.
Microsoft Copilot Studio is Microsoft’s low-code platform for building custom AI agents. These agents can answer questions, automate tasks and connect to business systems.
Many Australian businesses already use Microsoft 365 and may have Copilot licences. However, Copilot Studio serves a different purpose. Microsoft 365 Copilot is designed to help individual users work more efficiently, while Copilot Studio helps organisations create and manage their own AI-powered agents.
This guide explains what Microsoft Copilot Studio is, how it works and when it makes sense to use it.
What Is Microsoft Copilot Studio?
Microsoft Copilot Studio is a platform for building custom AI agents. Businesses can create and manage agents with little or no coding.
Copilot Studio evolved from Microsoft’s Power Virtual Agents platform. It combines AI chat, automation and business data in one place. Businesses can use it to build agents that:
- Answer employee questions
- Assist customers with common enquiries
- Retrieve information from business systems
- Automate repetitive processes
- Guide users through workflows
- Trigger actions across multiple applications
This means agents can use information from your business rather than relying only on publicly available information.
For example, a HR agent could answer questions about leave policies and employee benefits.
An IT support agent could help staff solve common issues or submit support requests.
How Does Microsoft Copilot Studio Work?
At a high level, Copilot Studio combines AI, business knowledge and automation.
An agent receives a request, determines what information or actions are required, and then either provides an answer or completes a task.
Knowledge Sources and Connectors
One of the key Copilot Studio features is its ability to connect to organisational data. Other Copilot Studio features include workflow automation, agent publishing, knowledge retrieval and integration with Power Platform tools. Agents can use:
- SharePoint sites
- Microsoft Teams content
- Internal documentation
- Websites
- Databases
- Third-party applications
- Custom business systems
Microsoft also provides hundreds of pre-built connectors through the Power Platform ecosystem.
This allows agents to generate answers based on approved business information rather than relying solely on public internet data.
Topics, Triggers and Actions
Copilot Studio agents can be configured to:
- Respond to specific questions
- Follow structured conversation paths
- Trigger workflows
- Update records
- Create tickets
- Send notifications
- Complete approvals
In practice, many organisations use Power Automate alongside Copilot Studio to connect systems and automate actions across applications.
While Copilot Studio is a low-code platform, there is still a learning curve. More advanced solutions often require workflow design, system integrations and Power Automate expertise.
Channels Where Agents Can Be Published
Once built, agents can be deployed across multiple channels, including:
- Microsoft Teams
- Websites
- Customer portals
- Internal business applications
- Microsoft 365 Copilot experiences
Keep in mind that deploying agents organisation-wide often requires tenant-level administrative permissions and governance oversight.
Microsoft Copilot Studio vs Copilot: What's the Difference?
One of the most common questions is the difference between Microsoft 365 Copilot and Copilot Studio.
Microsoft 365 Copilot helps individuals work more productively within applications such as Word, Excel, Outlook, PowerPoint and Teams.
Microsoft Copilot Studio allows organisations to build custom AI agents that can answer questions, automate tasks and connect to business processes.
A simple way to think about it is:
- Microsoft 365 Copilot focuses on personal productivity and helping individual users work more efficiently.
- Microsoft Copilot Studio focuses on building custom AI agents for specific business needs.
- Microsoft 365 Copilot works within Microsoft applications such as Word, Outlook, Excel and Teams.
- Copilot Studio can connect to business systems, data sources and workflows.
- Microsoft 365 Copilot works largely out of the box.
- Copilot Studio requires planning, design and configuration before deployment.
Copilot Studio should not be the first tool you reach for. First, consider whether Microsoft 365 Copilot, Cowork, scheduled prompts or another automation tool can achieve the same result.
Copilot Studio is generally most valuable when existing tools cannot support the workflow or automation requirement.
How Does Microsoft Copilot Studio Work?
At a high level, Copilot Studio combines AI, business knowledge and automation.
An agent receives a request, determines what information or actions are required, and then either provides an answer or completes a task.
HR Support
Agents Provides answers to:
- Leave policies
- Employee benefits
- Onboarding procedures
- Internal documentation
IT Service Desk Agent
Agents assist users with:
- Password reset guidance
- Software requests
- Device troubleshooting
- Ticket creation
Customer Service
Agent Handles:
- Frequently asked questions
- Order enquiries
- Service requests
- Escalation workflows
Sales and Operationss
Agents supportsteams by:
- Retrieving customer information
- Generating reports
- Updating CRM records
- Triggering approval processes
Many businesses also build internal knowledge assistants. These help staff quickly locate information spread across SharePoint, Teams and other systems.
How Much Does Microsoft Copilot Studio Cost?
Copilot Studio pricing can vary depending on how the platform is licensed and deployed.
Microsoft currently offers both standalone licensing and pay-as-you-go consumption options. Costs may depend on:
- Number of users
- Agent usage volumes
- Connected systems
- Workflow complexity
- Integration requirements
Microsoft licensing isn’t always straightforward, so it’s worth checking the latest pricing and inclusions before making a decision.
It’s also important to remember that licensing costs are only one part of the equation. Design, governance, integration and ongoing management often have a greater impact on the overall investment required.
Is Microsoft Copilot Studio the Right Tool for Your Business?
Not every business process needs an AI agent. Before building anything, it is worth asking:
- Can Microsoft 365 Copilot already achieve the outcome?
- Would a Power Automate workflow solve the problem more simply?
- Is there a genuine productivity gain?
- Do users actually need a conversational interface?
- Is the required data accurate and well governed?
The most successful projects start with a clearly defined business problem, not the AI tool itself.
If you’re wondering how to use Copilot Studio effectively, start with a small pilot project that solves a specific challenge. Once the agent has proven its value, it can be expanded to support additional teams, systems and processes.
Governance, Security and Essential Eight Considerations
AI projects should never be viewed purely as technology initiatives.
Businesses need to understand:
- Who can access data
- What information agents can retrieve
- How responses are monitored
- How permissions are managed
- How changes are governed
Without appropriate controls, an AI agent may expose information users were never intended to access.
For Australian organisations, governance should align with broader cyber security strategies, including Essential Eight recommendations, identity management, access controls and ongoing monitoring.
Get Practical AI Help From Lanter
Copilot Studio is a useful tool, but it is not the right fit for every situation. Sometimes, Microsoft 365 Copilot or Power Automate can get the job done with less setup and lower costs.
Lanter helps organisations evaluate AI opportunities, identify practical use cases and implement solutions that align with business goals, governance requirements and existing Microsoft environments.
Not sure if Copilot Studio is the right fit? We can help you evaluate your options and plan the next steps.
FAQs
What is Microsoft Copilot Studio?
Microsoft Copilot Studio is a low-code platform that allows organisations to build custom AI agents that can answer questions, retrieve information and automate business processes.
What is the difference between Microsoft 365 Copilot and Copilot Studio?
Microsoft 365 Copilot helps individual users work more efficiently in apps like Word, Outlook, Excel and Teams, while Copilot Studio is used to build custom AI agents for business-specific tasks and workflows.
What can you build with Microsoft Copilot Studio?
Businesses commonly build HR assistants, IT service desk agents, customer service agents, internal knowledge assistants and workflow automation agents that connect to business systems.
Does Microsoft Copilot Studio require coding?
Copilot Studio is designed as a low-code platform, but more advanced solutions often require workflow design, integrations, governance planning and Power Automate expertise.
How much does Microsoft Copilot Studio cost?
Pricing varies depending on licensing, usage volumes, integrations and deployment requirements. Organisations can choose from standalone licensing or pay-as-you-go options.
Is Microsoft Copilot Studio secure for business use?
Yes, when implemented correctly. Businesses should establish governance, access controls, identity management, monitoring and data permissions to ensure agents only access approved information.