MC985480 – (Updated) Microsoft 365 Copilot: New custom engine agents

Product:

Copilot, Microsoft 365 admin center, Microsoft 365 Copilot, Power Automate, Teams

Platform:

Developer, Online, Web, Windows Desktop, World tenant

Status:

In development

Change type:

Admin impact, New feature, Updated message, User impact

Links:

474439

Details:

Summary:
Microsoft 365 Copilot will soon support custom engine agents, allowing organizations to create specialized AI solutions using any large language model. The rollout starts in February 2025 for public preview and in May 2025 for general availability. Custom agents require a Microsoft 365 Copilot license and can be created using low-code or pro-code tools. Admin approval is needed for deployment.

Details:
Updated April 23, 2025: We have updated the timeline below. Thank you for your patience.
We are thrilled to announce the upcoming rollout of custom engine agents in Microsoft 365 Copilot. These agents are specialized agentic solutions that can be built on any large language model (LLM), toolchain, or orchestration tool tailored for specific domain or tenant workflows. This feature is already supported in Microsoft Teams and will be available after this rollout in Microsoft 365 Copilot Business Chat (BizChat).
To access custom engine agents, your organization will need a Microsoft 365 Copilot license.
This message is associated with Microsoft 365 Roadmap ID 474439.
[When this will happen:]
Public Preview: We will begin rolling out early February 2025 and expect to complete in mid-March 2025.
General Availability (Worldwide): We will begin rolling out in late May 2025 (previously late March) and expect to complete by early June 2025 (previously early April).

Change Category:
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Scope:
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Release Phase:
General Availability, Preview

Created:
2025-01-22

updated:
2025-04-24

Public Preview Start Date

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Task Type

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Docu to Check

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MS How does it affect me

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MS Preperations

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summary for non-techies**

Microsoft 365 Copilot will introduce custom engine agents for organizations starting in February 2025, allowing businesses to create tailored digital assistants using low-code or pro-code tools, with general availability expected by May 2025, requiring a Microsoft 365 Copilot license and managed through the Microsoft 365 admin center.

Direct effects for Operations**

Deployment of Custom Engine Agents
Without proper preparation, the automatic rollout of custom engine agents may lead to untested or poorly configured agents being deployed, resulting in potential disruptions in user workflows and productivity.
   - roles: IT Administrators, End Users
   - references: https://learn.microsoft.com/en-us/microsoft-365/admin/manage/manage-copilot-agents-integrated-apps?view=o365-worldwide, https://learn.microsoft.com/microsoft-365/correspondence/overview-custom-engine-agent

User Experience with Custom Agents
Users may experience confusion or frustration if custom agents are deployed without adequate training or documentation, leading to decreased satisfaction and potential resistance to using new tools.
   - roles: End Users, Training Coordinators
   - references: https://learn.microsoft.com/microsoft-copilot-studio/admin-share-bots?tabs=web, https://learn.microsoft.com/microsoft-365-copilot/extensibility/overview-custom-engine-agent

Admin Approval Process
If the admin approval process for deploying custom agents is not communicated effectively, it may lead to delays in agent availability, causing frustration among users who expect immediate access.
   - roles: IT Administrators, Project Managers
   - references: https://learn.microsoft.com/microsoft-copilot-studio/publication-add-bot-to-microsoft-teams, https://www.microsoft.com/microsoft-365/roadmap?filters=&searchterms=474439

Configutation Options**

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Opportunities**

Enhanced Customization for User Workflows
The introduction of custom engine agents allows organizations to tailor AI solutions to specific workflows, improving user experience by providing personalized assistance and automating repetitive tasks. This customization can lead to increased productivity and job satisfaction as users receive more relevant support.
   - next-steps: Identify key workflows within departments that can benefit from AI assistance. Train designated users on creating custom agents using Microsoft Copilot Studio and Teams Toolkit. Develop a pilot program to test these agents in select teams before wider deployment.
   - roles: Business Analysts, Project Managers, Department Heads
   - references: https://learn.microsoft.com/en-us/microsoft-365/admin/manage/manage-copilot-agents-integrated-apps?view=o365-worldwide, https://learn.microsoft.com/microsoft-copilot-studio/admin-share-bots?tabs=web

Improved IT Administration Efficiency
With custom engine agents, IT administrators can automate routine tasks such as user management, reporting, and compliance checks. This can significantly reduce the time spent on administrative tasks, allowing IT teams to focus on strategic initiatives.
   - next-steps: Evaluate current IT administrative tasks that can be automated with custom agents. Provide training for IT staff on utilizing Copilot Studio to create agents that streamline these processes. Monitor the effectiveness and make adjustments as necessary.
   - roles: IT Administrators, System Administrators, Compliance Officers
   - references: https://learn.microsoft.com/microsoft-365-copilot/extensibility/overview-custom-engine-agent, https://learn.microsoft.com/microsoft-copilot-studio/authoring-fundamentals

Facilitated Cross-Department Collaboration
Custom engine agents can be designed to facilitate communication and collaboration between different departments by providing tailored information and resources. This can help break down silos and enhance teamwork across the organization.
   - next-steps: Identify inter-departmental projects that would benefit from improved collaboration. Develop custom agents that can provide relevant data and insights to teams involved in these projects. Gather feedback from users to continuously improve the agents' functionality.
   - roles: Team Leaders, Collaboration Managers, Human Resources
   - references: https://learn.microsoft.com/microsoft-copilot-studio/publication-add-bot-to-microsoft-teams, https://learn.microsoft.com/microsoftteams/platform/bots/how-to/teams-conversational-ai/teams-conversation-ai-overview?tabs=javascript%2Cjavascript1

Potentional Risks**

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Data Protection**

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IT Security**

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Hypothetical Work Council Statement**

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DPIA Draft**

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explanation for non-techies**

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