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Transforming Agent Building: What's New in Copilot Studio

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Microsoft Copilot Studio’s June 2025 updates are setting a new benchmark for AI agent development, making it easier than ever to create, manage, and optimize intelligent solutions. Whether you’re a maker, admin, or business leader, these enhancements are designed to maximize productivity and deliver more value across your organization.

Credit: Microsoft

Broadened Knowledge Access for Agents

Copilot Studio agents can now tap into a wider spectrum of knowledge sources. By referencing Outlook emails, Teams messages, including group chats and meeting threads, and uploaded files, agents respond with richer context and relevance. 

The agent builder even suggests data sources based on recent activity, speeding up the setup process. These capabilities are available to users with eligible Copilot Chat licenses or pay-as-you-go access.

Credit: Microsoft

Smarter Knowledge Organization with File Grouping

Managing vast knowledge bases is now simpler with file grouping, currently in preview. You can assign specific instructions to groups of documents, such as HR guidelines or product manuals, ensuring agents deliver precise, context-aware responses. This upgrade enhances both navigation and information retrieval.

Empowering Makers with Advanced Tools and Prompts

  • Unified Tools Hub: The redesigned Tools tab consolidates connectors, actions, and flows, streamlining integrations with Outlook, SharePoint, SAP, and more. Enhanced input widgets and IntelliSense make setup intuitive, while advanced debugging accelerates troubleshooting.

  • Prompt Builder Innovations: Add Microsoft Power Fx logic directly into prompt inputs for dynamic, context-sensitive interactions. The new batch testing feature (public preview) lets you evaluate prompts at scale, analyze results, and refine performance, all from within the editor.

  • Power Fx Regular Expressions: With built-in regex support, makers can validate and extract text more efficiently. Functions like IsMatch, Match, and MatchAll simplify tasks such as detecting tracking numbers or confirming email formats.

  • In-Chat Single Sign-On (SSO): In preview, in-chat SSO authenticates users via adaptive cards during conversations, removing the need for separate login windows and creating a smoother experience.

  • Multilingual Generative Orchestration: Generative orchestration now works in all supported languages, not just English. Makers can build, test, and deploy agents in their preferred language, ensuring seamless conversations even across multilingual teams.

Enhanced Analytics and Insights

  • Knowledge Source Analysis: Makers gain granular insights into how agents utilize knowledge sources for every run, enabling continuous optimization of knowledge bases and overall agent performance.

  • Unanswered Questions Insights: Automated analysis highlights where agents fall short, surfacing common themes and contexts so teams can address gaps and improve accuracy over time.

Upgraded Admin Tools in Power Platform

Administrators benefit from new features in the Power Platform admin center. The agent inventory view provides a consolidated list of all Copilot Studio agents, complete with ownership, environment, and status details. Enhanced analytics offer deep visibility into usage patterns, billing, and adoption trends, empowering IT teams to optimize resources and support organization-wide AI growth.

Elevating Productivity Through Innovation

These June updates underscore Microsoft’s dedication to making Copilot Studio a robust, user-friendly platform for building impactful AI agents. Whether enhancing prompts, managing knowledge, or overseeing deployments, you’ll find new ways to accelerate outcomes and close gaps with less effort. For more details or to try Copilot Studio, visit the official website.

Source: Microsoft Copilot Studio Blog, July 2025


Transforming Agent Building: What's New in Copilot Studio
Joshua Berkowitz July 22, 2025
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