Microsoft Copilot Studio

Microsoft Copilot Studio is Microsoft's SaaS platform for building, deploying, and managing AI agents, formerly known as Power Virtual Agents and rebranded in 2024. It supports two agent types: conversational agents that respond to natural language prompts and guide users through workflows, and autonomous agents that plan, learn, and execute tasks independently with escalation when needed. Multi-agent orchestration routes tasks across specialized agents (Microsoft-built or partner) when complex processes require coordination. Build via a low-code authoring canvas with topic authoring, generative answers (RAG over user-specified internal and external sources), generative actions (AI dynamically picks the right plugins per request), and an Agent Store with ready-made templates. Connects to over 1,400 external data sources including line-of-business systems, MCP servers, and tenant graph for grounded retrieval. Pricing is multi-tier: (1) Free for internal-only agents within Microsoft 365 if users are licensed with M365 Copilot ($30/user/month), internal employee scenarios are zero-rated for classic answers, generative answers, and Microsoft Graph tenant grounding; (2) Standalone Copilot Studio license at $200/month per tenant for 25,000 Copilot Credits to build and publish agents externally (websites, apps, social platforms) for non-licensed users; (3) Pre-purchase plan with Copilot Credit Commit Units for up to 20% discount on prepaid credits with automatic pay-as-you-go coverage when prepaid credits run out; (4) Pay-as-you-go via Azure subscription with flexible usage-based billing; (5) Bundled in Microsoft 365 E7 Frontier Suite at $99/user/month (GA May 1 2026). Copilot Credits replaced messages as the billing unit September 2025. Capacity packs provide more predictable costs than pure PAYG for organizations with consistent agent usage. Agent 365 (GA May 1 2026, $15/user/month) provides centralized governance, registry, access control via Entra ID, and monitoring across all Copilot Studio agents and third-party agents in the tenant. Available globally including in Government Community Cloud (GCC). Best fit: enterprises building internal employee-facing agents (HR helpdesk, IT service desk, knowledge bases) with M365 Copilot already licensed, organizations wanting to externalize agents to customers via websites or social channels, IT teams with existing Power Platform investment, and developers building multi-agent orchestration workflows. Not appropriate for organizations not on Microsoft 365 (use Botpress, Voiceflow, or Dust instead), teams wanting fully open-source agent infrastructure, or use cases where agent traffic is unpredictable: Copilot Credits costs can scale aggressively without usage governance. Current state Q3 2026: Microsoft reports that 90% of the Fortune 500 use Copilot Studio, with named deployments including Estee Lauder, Dow, and Amgen. Work IQ APIs launched June 2, 2026, adding a new intelligence layer optimized for agentic use patterns across M365. Microsoft Scout, a separate always-on personal agent product, launched the same day and integrates across M365 apps but is a distinct product from Copilot Studio. Agent 365 and the M365 E7 Frontier Suite both reached GA on May 1, 2026. G2 shows 4.4 stars from 156 reviews.