Whilst at Microsoft’s AI Tour this week, I was asked my many people, the difference between building agents in AI Builder (in the Copilot App), Copilot Studio and Azure AI (and Foundry) when it comes to creating agents at work. As such, I thought I’d dop a quick (high-level non-techy) post on the differences and when you might build in each platform.
In this post I break down the three layers of Microsoft’s agent ecosystem in a simple, practical way that aims to highlight the basic ways to work with agents in Microsoft 365 and beyond, what approach to use and where to start.
1. Agent Builder: No-Code Simple agents
Agent Builder (formerly Copilot Studio Light) is the newest, most accessible and lowest friction way to create AI agents. It lives directly inside the Microsoft 365 Copilot app and is designed for individuals and teams who want to build knowledge agents or automate simple activities without needing technical skills or needing to write code. You can simply describe the agent you want to build or type in your instructions (think long prompt).
What it’s for
- Creating lightweight personal (or team based) knowledge agents that use web content, organisational data, or specific knowledge to perform and execute tasks.
- Automating simple workflows like summarising inboxes or preparing for meetings
- Helping you reason over your own content without needing connectors, APIs or enterprise and complex governance.
Examples
- An agent that helps review contract documents or statement of works.
- A personal knowledge assistant that explains internal processes
- A weekly report summariser that highlights risks and actions
Where it stops
Agent Builder is intentionally simple. It’s not designed for:
- Enterprise and third-party data integration
- Custom actions or plugins
- Complex multi-stage workflows
- Role-based access control
- ALM or environment management
When you need those things, you step up to Copilot Studio.
2. Copilot Studio – Low-Code, Business Process Agents
Copilot Studio is the enterprise layer of Microsoft’s agent ecosystem. It’s built for organisations that need more complex knowledge agents, automation, line of business integration, governance, and extensive controls.
What it’s for
- Building agents that connect to business systems such as HR or CRM
- Automating multi-step workflows
- Creating enterprise knowledge agents grounded in secure data
- Deploying agents outside of Teams, Outlook, and Copilot canvas such as to the web or other applications surfaces.
- Managing environments, security, and development lifecycle
Examples
- A customer service agent that integrates with CRM
- A finance assistant that pulls data from ERP systems
- A HR onboarding agent that guides new starters through processes
Why it fits
Copilot Studio is the bridge between personal / team productivity and enterprise agents and automation. It gives IT, solution architects and low-code developers the tools they need to build reliable, governed, scalable agents that work across the organisation.
3. Azure AI Agents – Pro Code, Cloud-Native, Scalable, Industry-Grade AI
At the top of the stack are agents built using Azure Foundry and Azure AI powered agents. These are built on Azure’s robust and global infrastructure and are designed for developers, ISVs, and organisations that need full control, scale, and flexibility over every aspect of the development lifecycle and that need to build and train their own language models.
Two common deployment models
SaaS deployment
- Runs in your tenant or subscription
- Ideal for large-scale or complex processing
- Great for ISVs building agent-powered products
Container based deployment
- Runs in the customer’s tenant or subscription
- Ideal for regulated industries or sensitive data
- Gives customers full control over data and deployment
Examples
- Healthcare AI that processes patient data
- Financial analysis agents for banks
- Manufacturing optimisation agents
- Predictive analytics dashboards
Azure AI with Foundry is where you go when you need custom orchestration, multi-agent systems, vector search, memory, or deep integration with cloud-native services.
The Decision Framework
Here’s the easiest way to decide which agent type you need:
- If you are building an agent that helps with knowledge or simple workflow and just needs access to M365 data
→ Start with Agent Builder in the Copilot app. - If you need an agent that must integrate with wider enterprise systems, business apps or that needs to automate entire business processes
→ Use Copilot Studio. - If your agent needs to scale, run globally and operate outside Microsoft 365, as well as handle sensitive or complex workloads with a choice or mix of AI models
→ Build with Azure AI and Foundry.
This three-layer model gives you a clear path from simple to sophisticated, without overlap or confusion.
Training and Content
The agent landscape is expanding fast, but the pattern is becoming clearer:
- Agent Builder is for personal productivity and knowledge
- Copilot Studio is for enterprise automation
- Azure AI is for scalable, cloud-native, industry-grade solutions
Understanding these layers helps you choose the right tool for the right job and gives you a roadmap for how your organisation can adopt agents in a structured, scalable way.
There is a bunch of great free training resources available at Microsoft Learn – I have highlighted a few links below. If you want to try a quick Knowledge Based agent, check out my follow-along video here:
- Microsoft Learn: Get Started with Agents – Training | Microsoft Learn
- Follow along Agent Builder: https://youtu.be/oY65jXs5pZk
Leave a Reply