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Agents: build, run and govern

Ways to build AI agents on Microsoft's stack, from low-code Copilot Studio to the open-source Microsoft Agent Framework and the Microsoft 365 Agents SDK, plus the layer that governs them: Microsoft Agent 365 for inventory and policy and Microsoft Entra Agent ID for agent identities.

8 technology profiles in this area

In this area

Overview

Microsoft's own adoption guide starts with one question: does a ready-made SaaS agent already do the job? Agents in Microsoft 365 Copilot, GitHub Copilot, Fabric, Dynamics 365 and Security Copilot cover many common tasks. Build only when none fits.

For building, Copilot Studio is the low-code SaaS route, with agents, workflows and agent flows, and a choice of harness that affects reasoning, features and billing. Microsoft Agent Framework is the open-source code SDK for .NET, Python and Go (Go in public preview) and the direct successor to Semantic Kernel and AutoGen. The Microsoft 365 Agents SDK carries messages between your agent and channels such as Teams, Microsoft Copilot, websites and Slack; it is not a model or an orchestration engine. Code-first agents can be hosted in Foundry Agent Service.

Governance is a separate layer. Microsoft Agent 365, generally available for the commercial segment since May 1, 2026 and licensed per user, gives admins one registry of agents and relies on Entra, Purview and Defender for identity, data and threat controls.

The Agent Framework documentation itself advises writing a plain function instead of an agent when a function can handle the task.12345

Problems it addresses

  • Too many ways to build1

    Low-code, pro-code and SDK options overlap. Microsoft positions Copilot Studio for process transformation and Foundry for deeper integration and custom logic, and endorses combining them.

  • Agents with no owner or inventory5

    Agents spread across teams and tools. Agent 365 gives admins a central registry and an agent map in the Microsoft 365 admin center.

  • Agents need their own identity6

    Entra Agent ID gives agents governed identities with Conditional Access, risk detection and audit logs. Extending those Entra security features to agents requires Agent 365.

  • Moving off older frameworks3

    Teams that built on Semantic Kernel or AutoGen face a migration. Microsoft publishes migration guides from both to Agent Framework.

  • Retiring workflow features7

    Foundry is retiring its workflows feature on December 1, 2026 and recommends Agent Framework for new workflow development.

A typical workflow

  1. Check for a SaaS agent first1

    Review the agents already offered in Microsoft 365 Copilot, GitHub Copilot, Fabric, Dynamics 365 and Security Copilot before building anything.

  2. Prototype in low code2

    Describe the agent in Copilot Studio, connect knowledge and tools through prebuilt or custom connectors, choose a harness and test before publishing.

  3. Move to code when needed8

    Build with Agent Framework, which works with Microsoft Foundry, Anthropic, Azure OpenAI, OpenAI and Ollama models, and deploy it as a Foundry hosted agent.

  4. Reach users where they work4

    Use the Microsoft 365 Agents SDK or Foundry publishing to put the agent in Teams and Microsoft Copilot.

  5. Register and govern5

    Track agents in the Agent 365 registry, give them Entra agent identities and apply Purview data controls and Defender threat protection.

Technologies

  • Framework / SDK

    Microsoft 365 Agents SDK

    The Microsoft 365 Agents SDK is a pro-code framework for building conversational agents that receive and answer messages across Microsoft Copilot, Teams, websites, Slack and other channels. It handles channel plumbing, state and authentication, and leaves the choice of AI model and orchestrator to the developer.

    • Developer
    • Agents
    • Copilot and apps
  • Cloud application

    Microsoft Agent 365

    Microsoft Agent 365 is a per-user licensed control plane for observing, governing and securing AI agents across an organization, whether built by Microsoft, partners or in-house. It became generally available for commercial customers on 1 May 2026 and relies on Microsoft Entra, Purview and Defender.

    • Agents
    • Security
  • Framework / SDK

    Microsoft Agent Framework

    Microsoft Agent Framework is an open-source SDK for building AI agents and graph-based multi-agent workflows in .NET and Python, with Go in preview. It is the direct successor to Semantic Kernel and AutoGen, works with many model providers, and reached version 1.0 on 3 April 2026.

    • Developer
    • Agents
    • AI
  • Cloud application

    Microsoft Copilot Studio

    Microsoft Copilot Studio is a low-code SaaS studio for building agents and AI-driven workflows, connecting them to company data and systems, and publishing them to Teams, Microsoft Copilot, websites and other channels. Usage is billed in Copilot Credits, with some uses covered by a Microsoft 365 Copilot license.

    • Agents
    • Developer
    • AI
  • Cloud service

    Microsoft Foundry Agent Service

    Foundry Agent Service is the managed runtime in Microsoft Foundry for building, hosting and scaling AI agents. Teams configure prompt agents with no code, run voice agents, or deploy their own agent code as hosted containers, with Entra identity, tools, tracing and publishing to Teams and Microsoft Copilot.

    • Agents
    • AI
    • Security
  • Suite

    Microsoft Entra

    Microsoft Entra is Microsoft's family of identity and network access products. Entra ID (formerly Azure Active Directory) handles sign-in, MFA and Conditional Access; other members cover governance, identity risk, external and workload identities, VPN-free private access, internet access and identities for AI agents.

    • Security
    • Agents
  • Suite

    Microsoft Purview

    Microsoft Purview is Microsoft's set of data security, data governance and compliance solutions. It labels sensitive data, prevents leaks with DLP, detects insider risk, catalogs data estates, and handles audit, eDiscovery and retention, including for prompts and responses in Copilot, agents and other AI apps.

    • Security
    • Data
  • Suite

    Microsoft 365 E7

    Microsoft 365 E7, which Microsoft calls The Frontier Suite, is a per-user license that adds Microsoft Copilot, Microsoft Agent 365 and the Microsoft Entra Suite on top of everything in Microsoft 365 E5. It became generally available on 1 May 2026 and is sold with and without Teams.

    • Programs
    • Security
    • Agents
    • Copilot and apps

Use cases

Documented implementations

Agent Platform Chooser

Where to build your AI agent in the Microsoft stack, or whether you need one at all.

Open the lab

Next steps

  1. Write down one agent use case with its data sources, actions, owner and success measure before choosing a platform.

  2. Run short time-boxed prototypes in Copilot Studio and in Foundry, as Microsoft's adoption guide suggests, and compare effort and coverage.

  3. Inventory the agents already running in your tenant and decide who approves new ones.

  4. Use the Agent Platform Chooser to match your use case to a build route.

Connected areas

Sources

  1. Technology plan for AI agents (Cloud Adoption Framework) (opens in a new tab)Microsoft · Vendor-reported
  2. Overview: Microsoft Copilot Studio (opens in a new tab)Microsoft · Vendor-reported
  3. Microsoft Agent Framework overview (opens in a new tab)Microsoft · Vendor-reported
  4. What is the Microsoft 365 Agents SDK (opens in a new tab)Microsoft · Vendor-reported
  5. Microsoft Agent 365 overview (opens in a new tab)Microsoft · Vendor-reported
  6. What is Microsoft Entra Agent ID? (opens in a new tab)Microsoft · Vendor-reported
  7. Microsoft Foundry portal general availability overview (opens in a new tab)Microsoft · Vendor-reported
  8. What is Microsoft Foundry Agent Service? (opens in a new tab)Microsoft · Vendor-reported

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