I created the attached guide to answer the most common question I get about Microsoft’s AI ecosystem: What is the actual difference between the Agent Builder in Microsoft 365 Copilot and the full Copilot Studio?
While both tools allow you to build secure, intelligent agents, there is a critical limitation regarding where those agents can actually live.
The “Deployment” Decider
If you are struggling to choose, look at your required distribution channels first.
- Microsoft 365 Copilot (Agent Builder): This is often described as “Copilot Studio lite”. Agents built here are strictly limited to the Microsoft 365 Copilot app. They are designed to assist users directly within their existing flow of work, emails, chats, and documents.
- Copilot Studio: If you need your agent to exist outside of the Copilot pane, this is your only option. Copilot Studio allows you to publish across Microsoft Teams, external websites, and custom endpoints.
What Else Is Inside The Guide?
Beyond deployment channels, my comparison sheet breaks down the vital differences in governance, audience, and functionality.
Download the full PDF below to learn:
- Governance: Why M365 Copilot’s “No New Privileges” model differs from Studio’s environment-level policies.
- Audience: When to build for small teams vs. the entire organization.
- Transitioning: How to start simple in M365 Copilot and copy your agent to Studio later.
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