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Microsoft 365 Copilot Unveils Custom AI and Multi-Agent Collaboration at Build 2025

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Microsoft is redefining how organizations harness artificial intelligence with a wave of new capabilities for Microsoft 365 Copilot, announced at Build 2025. These advancements put powerful, customizable, and secure AI-driven workflows within reach for businesses of all sizes.

Copilot Tuning: Tailored AI Without the Coding Headache

With the introduction of Copilot Tuning in Copilot Studio, organizations can now fine-tune AI models to their unique data and processes—no coding or data science expertise required. This low-code feature empowers users to craft domain-specific agents, from legal assistants adept at drafting firm-specific documents to industry-focused consulting bots. Security remains paramount: all data and models stay within the Microsoft 365 environment, and customer data is excluded from training Microsoft's broader AI models. Copilot Tuning will be available in June through an Early Adopter Program.

Multi-Agent Orchestration: AI Agents Working as Teams

Microsoft now enables companies to build AI agents that collaborate, combining their expertise to tackle complex workflows. Imagine onboarding a new hire: HR, IT, and marketing agents can handle their roles in concert, all under human oversight for assurance. Several enhancements support this orchestration:

  • Azure AI Foundry integration: Seamlessly bring over 1,900 custom AI models into Copilot Studio for tailored solutions.
  • Microsoft Entra Agent ID: Assign unique agent identities for streamlined management and security.
  • Microsoft Purview Information Protection: Extend automated data classification and protection to all Copilot Studio agents, reinforcing governance and compliance.

These features are now available in public preview, helping enterprises scale collaborative AI securely.

Empowering Developers with Enhanced Tools

Microsoft’s latest developer tools and APIs make building and deploying AI agents easier than ever. The Microsoft 365 Agents Toolkit supports pro-code development and seamless integration into Copilot, Teams, and beyond. Key updates include:

  • Microsoft 365 Agents SDK: Simplifies agent creation, testing, and deployment across environments.
  • Teams AI Library: Facilitates agent collaboration within Teams, now supporting advanced protocols for smooth agent interactions.
  • Copilot APIs: Developers can embed chat, retrieval, and meeting intelligence into apps, governed by the Copilot Control System for compliance.
  • Solution Workspace in Power Apps: Offers a unified canvas for designing and coding business solutions using natural language, speeding up development cycles.
  • Agent Feed: Provides real-time dashboards to monitor agent performance and workflow exceptions.

These offerings reinforce Copilot Studio’s role as the central hub for both low-code and pro-code AI development.

Real-World Success Stories Highlight Impact

Adoption of Copilot and custom AI agents is accelerating, with over 1 million new agents created last quarter—a remarkable 130% surge. Leading organizations are already seeing tangible benefits:

  • Wells Fargo: Their agent helps 35,000 bankers, reducing search time for procedures from 10 minutes to just 30 seconds.
  • T-Mobile: Aggregates live product data from over 20 manufacturers for instant information access.
  • HCLTech: Resolves employee support queries 40% faster and redeploys staff to higher-value tasks.

These examples illustrate how tailored AI agents, when effectively orchestrated, can transform operations and boost return on investment.

Takeaway: Advancing Human-AI Collaboration

Microsoft’s latest innovations signal a future where AI agents work hand-in-hand with people, scale to business needs, and adapt securely to each organization. With Copilot Studio at the core, enterprises are empowered to build, tune, and orchestrate AI solutions that drive efficiency and value—ushering in a new era of human-agent collaboration.

Source

Microsoft 365 Blog: Build 2025 Announcements


Microsoft 365 Copilot Unveils Custom AI and Multi-Agent Collaboration at Build 2025
Joshua Berkowitz May 20, 2025
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