Microsoft Copilot Studio (formerly Power Virtual Agents) is a low-code platform for building custom AI agents and copilots that integrate with Microsoft 365, Azure, and thousands of third-party services via Power Platform connectors.
**Custom Copilots**
Copilot Studio allows building custom AI assistants grounded in company-specific data — SharePoint documents, internal databases, APIs — without writing code. The resulting copilots can be deployed to Teams, websites, or embedded in other Microsoft 365 applications.
**Generative AI Actions**
Copilot Studio agents can autonomously plan and execute multi-step tasks using generative AI, calling external APIs, querying databases, and updating records based on conversational input.
**Microsoft 365 Integration**
The depth of Microsoft 365 integration is the platform's primary strength. Copilots can read and write SharePoint, access Teams conversations, query Exchange calendars, and interact with Dynamics 365 — all with enterprise authentication handled automatically.
**Power Platform**
Integration with Power Automate provides access to thousands of workflow automation connectors, making it straightforward to trigger business processes from copilot conversations.
**Governance**
Enterprise-grade governance including DLP policies, audit logs, and compliance controls make Copilot Studio suitable for regulated industries where data handling is tightly controlled.
**Pricing**
$200/month per tenant for 25,000 messages. Additional messages at $0.01 each. Requires Microsoft 365 subscription.
**Verdict**
For organisations already invested in the Microsoft ecosystem, Copilot Studio is the most practical path to custom AI agents. The governance and integration depth justify the cost for enterprise deployments.