Microsoft 365 Copilot Chat is taking personalization and functionality to a whole new level by introducing agents that can revolutionize workplace productivity. If you're feeling a little lost in Microsoft's sprawling AI ecosystem, fret not—you’re in the right place for a feature-packed breakdown of what this update means and how you can use it.
Microsoft has announced that agents built with Copilot Studio will soon be fully accessible in the Microsoft 365 Copilot Chat environment, signaling a fundamental shift in how businesses interact with AI. These agents aim to "empower every employee with a Copilot and transform every business process with agents." But how will this actually happen? Let’s unravel the intricacies of this innovation.
At its core, agents are specialized AI tools designed to streamline processes across diverse business scenarios, whether you're in customer service, HR, or supply chain management. Created in Copilot Studio, these agents can process queries, automate workflows, and generate insightful responses tailored to specific business needs.
Previous iterations of AI tools in workplaces were often restricted by rigid boundaries, serving limited purposes such as answering emails or managing predefined tasks. Copilot pushes beyond this by integrating generative AI, tenant-specific data retrieval, and even full-on autonomous actions (more on this shortly).
Here’s the exciting part: businesses can now customize these agents to their heart’s content using Copilot Studio’s Agent Builder, making it possible to create tightly focused solutions for distinct business processes. Fancy an AI agent that can handle company logistics or an HR chatbot that answers questions beyond “How many vacation days do I have left?” It’s all within reach.
If your primary concern is budget management (and whose isn't?), the Microsoft Power Platform Admin Center will act as your go-to hub. Admins can monitor message usage, allocate message capacity by agent or environment, and enable specific features with pricing controls, ensuring total governance over costs.
The downside? Each use of Tenant Graph grounding runs you 30 messages, so choose this feature sparingly. On top of that, it's important to point out that personal data like emails or private chats are excluded, preserving crucial boundaries around sensitive information.
For example:
As this rolls out, companies will need to make strategic choices—balancing priorities like enhanced functionality versus keeping costs in check. For example, do you use Tenant Graph grounding across multiple agents or limit its use to mission-critical workflows?
The flexibility to design, control, and scale means that modern businesses won’t just survive in today’s competitive landscape—they’ll thrive.
What do you think? Does this multi-layered pricing plan make sense? Will businesses flock to this, or could the cost complexities deter faster adoption? Let us know your thoughts below!
Source: Microsoft Enabling agents in Microsoft 365 Copilot Chat | Microsoft Copilot Blog
Microsoft has announced that agents built with Copilot Studio will soon be fully accessible in the Microsoft 365 Copilot Chat environment, signaling a fundamental shift in how businesses interact with AI. These agents aim to "empower every employee with a Copilot and transform every business process with agents." But how will this actually happen? Let’s unravel the intricacies of this innovation.
What Are Microsoft Copilot Agents?
At its core, agents are specialized AI tools designed to streamline processes across diverse business scenarios, whether you're in customer service, HR, or supply chain management. Created in Copilot Studio, these agents can process queries, automate workflows, and generate insightful responses tailored to specific business needs.Previous iterations of AI tools in workplaces were often restricted by rigid boundaries, serving limited purposes such as answering emails or managing predefined tasks. Copilot pushes beyond this by integrating generative AI, tenant-specific data retrieval, and even full-on autonomous actions (more on this shortly).
Here’s the exciting part: businesses can now customize these agents to their heart’s content using Copilot Studio’s Agent Builder, making it possible to create tightly focused solutions for distinct business processes. Fancy an AI agent that can handle company logistics or an HR chatbot that answers questions beyond “How many vacation days do I have left?” It’s all within reach.
The Business of "Pay-to-Use Agents"
Microsoft has opted for a pay-as-you-go model tied to "messages"—a straightforward (if somewhat complex) way to measure how much an organization is leveraging its Copilot-powered agents. Here’s what you need to know about this pricing system:Cost Breakdown:
- Pricing Basics:
- $0.01/message on the pay-as-you-go meter through Microsoft Azure.
- Pre-paid packs: $200 for 25,000 messages per month.
- What is a "Message"?
- A "message" is essentially a tracked interaction where an agent sends a response.
- Example: Ask an agent a simple query, and you'll incur a single message cost for a "classic" answer or higher costs for advanced features like generative answers or autonomous actions.
Pricing by Features Breakdown:
Let’s dive into how much each type of AI response will cost: | Copilot Studio Feature | Consumption Rate (Messages) |
---|---|---|
Web-grounded answers (NEW) | 0 messages (Free) | |
Classic answers | 1 message | |
Generative answers | 2 messages | |
Tenant Graph grounding (NEW) | 30 messages per use | |
Autonomous actions (NEW) | 25 messages per action |
A Closer Look: Classic vs Generative Answers
- Classic Answers: Static responses or predefined interactions managed by agent creators. Perfect for highly specific or regulation-heavy workflows. These cost just 1 message per response.
- Generative Answers: Where things get spicy! Using more dynamic, AI-driven responses based on conversational context and knowledge bases (such as files in SharePoint), this mode creates human-like interaction but costs 2 messages per response. This trade-off between functionality and cost may have you thinking twice about when and where to use generative modes.
What Is Tenant Graph Grounding?
Arguably one of the most standout features of this update is Tenant Graph grounding, a premium capability allowing agents to draw knowledge from your organization’s Microsoft Graph data (think files stored in SharePoint or external data synced via Microsoft Graph connectors). This ensures that agents provide organization-specific, contextually accurate insights.The downside? Each use of Tenant Graph grounding runs you 30 messages, so choose this feature sparingly. On top of that, it's important to point out that personal data like emails or private chats are excluded, preserving crucial boundaries around sensitive information.
Enter the Era of Autonomous Actions
This, too, is where the future meets ambition. Autonomous actions unlock the full potential of business process automation. Think of them as generative workflows where an agent doesn’t just respond—it acts.For example:
- Customer service: Automatically logs issues, routes problems, and schedules follow-ups—all without human intervention.
- Sales: Automatically fills out order forms or sends invoices, cutting admin hours drastically.
Real-World Cost Examples
Numbers talk, so let’s visualize the financial implications with a few case studies:- Customer Service Agent:
- Usage: Responded to 500 classic questions, plus 2,000 generative ones in a day.
- Cost:
- Classic: 500 messages = 500 x $0.01 = $5.
- Generative: 2,000 messages = 2,000 x $0.02 = $40.
- Total Cost/Day: $45.
- HR Support Agent (Graph-Enabled):
- Usage: Responded to 200 generative answers, accessed Tenant Graph 200 times.
- Cost:
- Generative: 200 x $0.02 = $4.
- Tenant Graph: 200 x $0.30 = $60.
- Total Cost/Day: $64.
- Autonomous Order Processing Agent:
- Usage: 100 generative responses, 100 Tenant Graph uses, 800 autonomous actions.
- Cost:
- Generative: $2.
- Tenant Graph: $30.
- Autonomous: $200.
- Total Cost/Day: $232.
What’s Next: Governance and Control
The Microsoft Power Platform admin tools ensure that admins will never lose track of agent usage or ballooning costs. Every interaction, setting, and feature can be monitored and controlled, with admins able to allocate specific workloads across environments.As this rolls out, companies will need to make strategic choices—balancing priorities like enhanced functionality versus keeping costs in check. For example, do you use Tenant Graph grounding across multiple agents or limit its use to mission-critical workflows?
Why It Matters: The Bigger Picture
This update is more than just a tech upgrade—it’s a glimpse into the potential AI holds for every workplace. By introducing consumption-based pricing for tailored agents, Microsoft is signaling that AI is no longer exclusive to tech elites or enterprise-only giants. With careful planning, even a mid-size small-to-medium business can deploy agents that tangibly improve processes.The flexibility to design, control, and scale means that modern businesses won’t just survive in today’s competitive landscape—they’ll thrive.
What do you think? Does this multi-layered pricing plan make sense? Will businesses flock to this, or could the cost complexities deter faster adoption? Let us know your thoughts below!
Source: Microsoft Enabling agents in Microsoft 365 Copilot Chat | Microsoft Copilot Blog
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